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Photo = Kakao Mobility |
[Alpha Biz= Kim Jisun] Global mobility giant Uber has begun reviewing a potential acquisition of management control in Kakao Mobility, according to an exclusive report by Seoul Economic Daily.
According to investment banking sources, Uber recently conveyed its intention to acquire a controlling stake and has initiated due diligence. Early-stage discussions are reportedly underway at both Korean and U.S. headquarters levels, with Uber said to have submitted a letter of commitment (LOC).
Uber is reportedly targeting a stake exceeding 50%, potentially including shares held by a consortium led by TPG (28%), The Carlyle Group (6.17%), and part of Kakao’s 57.2% holding. TPG has been exploring exit options after Kakao Mobility’s IPO plans effectively stalled.
Kakao Mobility’s enterprise value is estimated at around KRW 5.5 trillion, with a potential acquisition price for a controlling stake projected at approximately KRW 2.8 trillion.
Uber’s move is widely seen as an attempt to reshape the competitive landscape in South Korea, where it has struggled against Kakao Mobility’s dominant platform. The company entered the market in 2021 through a joint venture with TMAP Mobility but has since transitioned to a fully owned operation. CEO Dara Khosrowshahi has also signaled aggressive expansion plans in Korea.
However, regulatory hurdles remain significant. Any deal would require approval from the Fair Trade Commission, which has recently taken a stricter stance on large-scale mergers and acquisitions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
