SK Networks Collaborates with Vivek to Propel AI-centered Business-oriented Investment Company Through 'SK Networks Renaissance Project'

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Jan 31, 2024, 16:00 ET

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SEOUL, South Korea, Jan. 31, 2024 /PRNewswire/ -- Vivek Ranadivé, Managing Director of Bow Capital and also the owner of the Sacramento Kings, visited Korea to strengthen the partnership with SK Networks, which has been exploring continued cooperation since the establishment of a partnership with SK Networks' U.S. investment arm last year, aligning with SK Networks' evolution into a Business-oriented Investment Company.

SK Networks announced on 31 January that it has taken a significant stride towards its AI-centered Business-oriented Investment Company ambitions by officially signing a non-binding memorandum of understanding (MOU) for the 'SK Networks Renaissance Project.' SK networks President & COO Sunghwan Choi (left) and Bow Capital Managing Director, Vivek Ranadivé pose for a photo after the memorandum of understanding.

SK Networks (CEO: Hojeong Lee) announced on 31 January that it has taken a significant stride towards its AI-centered Business-oriented Investment Company ambitions by officially signing a non-binding memorandum of understanding (MOU) for the 'SK Networks Renaissance Project.' The signing ceremony, held at Samil Building in Jongno-gu, Seoul, included key officials such as SK Networks President & COO Sunghwan Choi, and Managing Director Ranadivé.

In a strategic move to maximize its value as an AI-centered business-oriented investment company, SK Networks is set to establish a consortium for future large-scale investment cooperation, concurrently optimizing its value as an AI-centered business-oriented Investment company. Under the terms of this accord, Ranadivé and prominent U.S. investors would assume control of a portion of SK Networks' treasury stocks during forthcoming investment endeavors. (non-binding until the completion of definitive agreements)

Managing Director Ranadivé, a technology visionary in the U.S. venture industry for over four decades, made headlines with the successful sale of his software company, TIBCO Software Inc., founded in 1997, in 2014 for $4.3 billion. In 2013, he achieved another milestone by becoming the first person of Indian descent to own an NBA franchise, acquiring the 'Sacramento Kings.'

Under Ranadivé's leadership, Bow Capital Management LLC has cultivated a robust collaborative alliance with the University of California System (UC System), encompassing ten campuses such as UCLA and UC Berkeley, along with six medical facilities and hospitals, and three national research institutes. The AUM of UC Investments, managing the investment assets of the University of California totals about $152B.

In pursuit of strategic collaboration, SK Networks envisions leveraging this MOU to actively involve external investors. The plan involves divesting shares to influential partners upon confirming future joint investment targets. This strategic move aims to cultivate strong collaborations and invest in leading-edge technologies, with a specific focus on AI, operating within a well-established cooperation framework alongside Ranadivé, a distinguished figure in the global technology market. The expected outcome is a hastened pace of business investment within this dynamic sector.

Contrary to the usual investment cooperation agreements featuring downward protection clauses, the project MOU between SK Networks and Ranadivé is notable for its reliance on a robust relationship, omitting such a safeguard clause. Additionally, leveraging the UC system through Ranadive is anticipated to enable SK Networks to access investment resources in the AI and robotics sectors, paving the way for further growth opportunities in the future.

As a serial entrepreneur in technology and an experienced investor, Ranadivé related to the innovation direction of SK Networks, which has excellent business capabilities and networks in the Asia market. SK Networks will work in partnership with Vivek to identify a large business for potential acquisition and accelerate the pace of change after its existing business hit a plateau, and they intend to leverage the partnership as a launchpad to create a model for the digital and AI-focused economy.

Managing Director Ranadivé stated, "I am excited to partner with SK Networks in launching the SK Networks Renaissance Project, and in finding a transformative acquisition" further noting, "Our joint efforts to contribute to the successful reinvention of SK Networks as a global technology company,"

SK Networks and Ranadivé intend to operationalize their collaboration by progressing through the subsequent stages via a TF Team organization following the signing of this MOU. This strategic initiative is designed to augment the company's value as a Business-oriented Investment Company, with a focus on delivering Business outcomes in the AI and robotics sectors and concurrently expanding into global markets, including India.

An SK Networks official stated, "The amicable relationship between President Sunghwan Choi and Vivek, Managing Director of Bow Capital and owner of the Sacramento Kings, has yielded positive outcomes in exploring collaborative avenues at events like CES" further noting, "Building upon the partnership with Managing Director Ranadivé, SK Networks is poised to spearhead change and innovation, identifying novel opportunities in business sectors such as AI and robotics. The official emphasized, "Our emphasis will be on cultivating innovative business models applicable to our diverse enterprises, including information and communications business, SK Magic, En-core and the recently revitalized Walkerhill Hotel. We aim to achieve this by actively acquiring technologies relevant to contemporary needs, fostering collaborations with academic and industry partners, such as the UC system."

SOURCE SK Networks