Telecom's SK Horizon Spinoff: A New AI Growth Engine for SKM?

SK Telecom (SKM) plans to split its wholly owned subsidiary SK Broadband into two entities: the remaining SK Broadband and a new company, SK Horizon, focused on AI data center infrastructure. The restructuring aims to separate SKM’s traditional connectivity and media businesses from a faster-growing opportunity in AI infrastructure. The deal brings in KKR and the IMM Investment-Stonebridge consortium with a combined equity investment of KRW 3.08 trillion. After closing, KKR would own 29% and the IMM consortium 20%, while SKM retains a controlling 51% stake. SK Horizon is expected to manage 318 MW of capacity, including eight existing data centers. The broader plan includes SK Hyper, created in July, targeting 5 GW by 2029 and 15 GW by 2035.