Kakao Games is making a massive $111 million bet on its future.
Kakao Games Sold Its Golf Subsidiary for a $111M Bet on AAA Games
By selling its non-core screen golf business, the publisher is betting its future on the high-budget PC and console market.
Highlights
- Kakao Games raised $111 million to pivot its focus to high-budget PC and console games.
- The funds were secured by selling its non-core screen golf business and issuing new stock.
- This new capital will directly support the development of global AAA titles like "Project Q".
South Korean publisher Kakao Games has successfully raised approximately $111 million USD (₩156.2 billion) to fuel a major push into the high-budget PC, console, and AAA gaming market. The company generated the new capital by selling its non-core screen golf subsidiary, Kakao VX, and issuing new shares, signaling a clear new focus on creating blockbuster titles for players around the world.
The funding was raised through a two-part financial maneuver. The main part of the deal involves Kakao Games selling its entire stake in the screen golf company Kakao VX to IVG, an affiliate of Kakao Investment, for $153 million USD (₩210 billion). This sale is scheduled to be finalized on October 15, 2025. To make this sale possible, Kakao had first bought a larger share in the subsidiary for about $118 million USD.
Separately, the company also raised an additional $80 million USD (₩108.5 billion) by issuing 6.92 million new shares. After balancing the costs and gains from these transactions, Kakao Games is left with a fresh $111 million USD to invest directly into its gaming pipeline.
A Bet on AAA Games
This move represents a strategic shift for Kakao Games. The company is intentionally moving away from businesses like screen golf, which, despite being successful during the pandemic, have seen their growth slow down.
By selling Kakao VX, the publisher is freeing up cash and resources to concentrate on what it sees as the future: developing large-scale, high-quality games that can compete on the international stage. The company has confirmed this new capital will be used to strengthen its finances and directly fund its ambitious PC and console game development plans.
The new strategy is already in motion. A prime example is "Project Q", a highly anticipated AAA MMORPG for which Kakao Games has secured global publishing rights. Developed by Lionheart Studio using Unreal Engine 5, the title is being built for both PC and mobile with cross-play support.
This project, which is scheduled to launch later this year, perfectly illustrates the type of high-fidelity, globally-focused game the new capital is intended to support, positioning Kakao Games to compete more seriously on the world stage.
Author
Krishna Goswami is a content writer at Outlook India, where she delves into the vibrant worlds of pop culture, gaming, and esports. A graduate of the Indian Institute of Mass Communication (IIMC) with a PG Diploma in English Journalism, she brings a strong journalistic foundation to her work. Her prior newsroom experience equips her to deliver sharp, insightful, and engaging content on the latest trends in the digital world.
Krishna Goswami is a content writer at Outlook India, where she delves into the vibrant worlds of pop culture, gaming, and esports. A graduate of the Indian Institute of Mass Communication (IIMC) with a PG Diploma in English Journalism, she brings a strong journalistic foundation to her work. Her prior newsroom experience equips her to deliver sharp, insightful, and engaging content on the latest trends in the digital world.
