The Pinkfong Company, creator of the global children’s sensation "Baby Shark," is reportedly pursuing a management buyout in parallel with its planned market debut, according to industry sources on Friday.
In May, the company filed for a preliminary review to list on the Kosdaq, marking a renewed push for an initial public offering six years after it first floated the idea in 2019.
Multiple industry reports suggest that Pinkfong is in talks with potential buyers regarding a management sale. According to Maeil Business Newspaper, the deal may involve major shareholder stakes, with a potential price tag in the hundreds of billions of won.
Major shareholders include CEO Kim Min-seok with an 18.44 percent stake, Editorial Samsung with 16.77 percent and telecom giant KT holding 9.1 percent. Editorial Samsung is Pinkfong’s parent company, and Kim is the son of Editorial Samsung CEO Kim Jin-yong.
Founded in 2010 as an entertainment subsidiary producing animations, songs and films, Pinkfong shot to global fame in 2016 with its breakout hit "Baby Shark." The song and its accompanying video became a viral sensation among children worldwide, with "Baby Shark Dance" holding the title of YouTube’s most-viewed video at over 16 billion views to date.
The company was once valued at over 1 trillion won ($714 million) during its Series B funding round in 2021, reportedly becoming the first Korean content firm to achieve unicorn status.
However, its valuation is believed to have declined in recent years amid weakening performance. Annual revenue dropped from 117 billion won in 2022 to 94.6 billion won in 2023, with operating profit swinging from 3.7 billion won to a 3.2 billion won loss.
Earnings recovered in 2024, with revenue rising to 97.3 billion won and operating profit rebounding to 18.8 billion won.
Pinkfong recently opened its fifth overseas subsidiary in Japan and is expanding its global footprint while growing its YouTube consulting and intellectual property businesses.
The company’s flagship YouTube channel has racked up 51.3 billion cumulative views and boasts 82.6 million subscribers. Its content is now available in 25 languages across 244 countries.
jwc@heraldcorp.com
