Citing sources from investment banks, South Korea's Seoul Economic Daily reports that Kakao is currently in negotiations with the South Korean AI startup Upstage about the potential sale of its portal website, Daum. At present, Kakao owns all the shares of Daum's parent company, AXZ. As part of the deal, there is a possibility that Kakao will transfer operational control via a share - swap arrangement.

Upstage has ambitious plans to go public through an Initial Public Offering (IPO) as early as the second half of 2026. To facilitate this listing process, the startup has enlisted the services of KB Securities and Mirae Asset Securities. Should this deal between Kakao and Upstage materialize, Daum will be integrated into Upstage's system. This integration could have far - reaching implications, potentially impacting both Upstage's IPO valuation and its overall business strategy and layout.