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Kakao merges all games businesses into one

Kakao Games subsidiary merged into holding company, also named Kakao Games

South Korean internet firm Kakao has restructured how its games businesses are handled.

Business Korea reports that the firm has transferred all of its games operations into a subsidiary Kakao Games, which has then been merged into a holding company. Formerly known as K-Venture Group, the holding company has now been renamed Kakao Games Holdings.

The latter will now be in charge of Kakao's games publishing and distribution services, as well as any games-related projects using the firm's Kakao Friends IP.

Kakao Games CEO Namkung Hoon added that his firm hopes to "make profits in various coutnries by raising our own development capabilities."

The purpose of all these changes is reportedly to improve the efficiency of the games business, which is the biggest generator of revenue at Kakao, and also to better prepare for an IPO - something Kakao is reportedly holding back from until the corporate value of Kakao Games exceed 500bn won.

Rumours also persist that this is all part of a transition where Kakao will take on a holding company structure.

Kakao enjoys success from mobile games for the Asian markets such as Yin Yang Sha. However, it also publishes Western games in South Korea, with Yonhap News Agency reporting earlier this week that it will publish PlayerUnknown's Battlegrounds in the region.

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James Batchelor avatar
James Batchelor: James is Editor-in-Chief at GamesIndustry.biz, and has been a B2B journalist since 2006. He is author of The Best Non-Violent Video Games
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