Attention focuses on whether CJ ENM will acquire SM Entertainment and become Korea’s No. 1 entertainment business.
Earlier today, a media outlet reported that CJ ENM has decided to acquire Lee Soo Man’s share in SM Entertainment (18.72%) and sign the contract tomorrow.
However, both companies soon denied the report. CJ ENM stated, “We are reviewing various methods for growing the music business, but nothing has been confirmed.” SM also denied the M&A rumors, saying, “The report about us signing an acquisition contract on the 22nd is not true.”
SM Entertainment is an entertainment label that producer Lee Soo Man founded in 1995. In addition to the global musician training and management business, SM successfully operated various businesses such as the world’s first online-only concert “Beyond LIVE” and the global mobile service platform “DearU bubble.”
For over three decades, Lee has reigned as the largest shareholder and as a chief producer. He rose to prominence as the representative K-pop producer by launching some of the biggest groups. His list includes TVXQ, SHINee, Girls’ Generation, EXO, Red Velvet, NCT, and aespa.
According to insiders, it is said that Lee expressed his intention to sell all of his stake, which is said to be worth about 300 billion KRW (about $255 million).
Besides CJ ENM, Kakao Entertainment has also shown interest in this upcoming takeover.
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