Kakao, CJ ENM, & HYBE are all reportedly competing to acquire Lee Soo Man's shares in SM Entertainment at up to $3.5 billion USD (2024)
According to insiders from the investment banking industry on August 3, entertainment conglomerate giants including Kakao Entertainment, CJ ENM, and even HYBE Labels are currently competing to acquire shares in SM Entertainment.
Earlier this week, industry insiders reported that CJ ENM's vice president Lee Mi Kyung (who delivered an acceptance speech on behalf of the 'Parasite' cast at the 'Oscars') flew toSeoul abruptly in order to meet up with SM Entertainment's head producer, Lee Soo Man.
Since spring of this year, SM Entertainment's head producer Lee Soo Man garnered attention by allegedly hinting at his intentions to sell the entirety of his shares in SM Entertainment. As Lee Soo Man currently holds approximately 18.73% of shares in SM Entertainment, investment banking experts believe that acquiring the shares in theirentirety would mean the equivalent of claiming near exclusive management rights. Experts also predicted earlier this year that if Lee Soo Man chooses to sell his 18.73% of shares, it would also mark the biggest change in SM Entertainment's management since the label was founded in 1995.
Thus far, the selling price of the shares in questionare projected at between2.5 trillion to 4 trillion KRW (~ $2.2 billion to3.5 billion USD). Investment bank insiders have reported that Kakao Entertainment offered SM Entertainment 2.5 trillion KRW for the shares, while HYBE Labels called a higher bid. It is currently unknown what amount was offered byCJ ENM, whose reps reportedly joined in the competition bid later than the first two offers.
It was revealed that HYBE bought Lee Soo Man's stake in SM Entertainment and paid Lee an additional 70 billion KRW (~53.3 million USD) for his stake in SM Entertainment's subsidiaries.
South Korean internet company Kakao has become the largest shareholder of SM Entertainment, winning a battle for control of one of the country's most iconic music agencies. Kakao and its entertainment unit have increased their stake in SM to 39.9%, they said in a Tuesday regulatory filing.
Back in 2014, former EXO members Luhan and Tao filed for contract termination after citing similar issues. The artists claimed that SM Entertainment exploited them and violated their basic rights as artists, including curtailing health, privacy, and creative freedom.
HYBE has announced that it “will discontinue the acquisition process of SM Entertainment.” On March 12, HYBE released an official statement announcing the end of its highly public battle with Kakao over acquiring shares of SM Entertainment.
KakaoTalk is a major messaging app in South Korea, competing with notable apps like WeChat. KakaoTalk generates some $200 million in revenues per year. The company has a number of revenue streams, including advertising, games, stickers, and shopping.
SM Entertainment is one of the largest and most influential talent agencies and record labels in South Korea, valued at around $4 billion. SM first came to global prominence with 2000s-era groups like Girls Generation, SHINee, EXO and Super Junior, and currently manages bestselling acts NCT, Super M and Aespa.
EXO's Baekhyun, Chen and Xiumin file a lawsuit against SM Entertainment to terminate contracts. A legal representative of the three idols has called out the “unfair act of aggression” by SM Entertainment.
Prior to his departure, Lucas became embroiled in multiple controversies that involved his personal life and relationships, and was accused of cheating and gaslighting. In August 2021, Lucas released an apology after three of his ex-girlfriends shared their negative experiences with him.
By Bhavna Agarwal: EXO members Chen, Baekhyun and Xiumin, also known as the sub-unit, CBX, recently left everyone surprised after they announced filing a lawsuit against their label, SM Entertainment. The lawsuit highlighted some discrepancies in payments and contract slavery clauses.
However, the HYBE founder didn't completely disregard the promise made in the statement, adding, “It isn't wishful thinking. BTS has agreed to work on returning in 2025.” Along with the enlistment, Bang Si Hyuk spoke honestly about BTS's contract renewal with the company, which is due to end in 2024.
HYBE Corporation is an entertainment company formed through the re-branding of Big Hit Entertainment. There are no artists who have been debuted directly under HYBE, so this profile will be broken down into the various subsidiaries it owns. Members in the Final Lineup: Jiyeon, Zinni, Dahee, and Miso.
In October 2022, SM announced that they would terminate their production contract with Lee's Like Planning by the end of the year. On 3 February 2023, SM said that they would restructure the company without the help of Lee, adopting a multi-production center system to replace his role as chief producer.
On March 28, 2023, Kakao announced that it successfully acquired 35% stake in SM Entertainment through its tender offer bid, resulting a combined 39.87 percent stake that owned from Kakao and its subsidiary, Kakao Entertainment respectively, becoming SM's largest shareholder.
Sunny was born on May 15, 1989, in Orange County, California. Her family consists of her parents and two older sisters who are ten and fifteen years older than her. She and her sisters share the same birthday. Sunny's paternal uncle is Lee Soo-man, the founder of SM Entertainment.
Address: Suite 490 606 Hammes Ferry, Carterhaven, IL 62290
Phone: +8557035444877
Job: Forward IT Agent
Hobby: Fishing, Flying, Jewelry making, Digital arts, Sand art, Parkour, tabletop games
Introduction: My name is Otha Schamberger, I am a vast, good, healthy, cheerful, energetic, gorgeous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
