Kakao and Naver contest over acquisition of SM and Lee Soo Man’s shares

It has been reported in Korean media that Naver and Kakao Entertainment will soon be competing for the acquisition of stakes in SM Entertainment. The move has been interpreted as a way to expand global market activities, riding on the Hallyu wave.

According to a report by the investment banking industry, Naver and Kakao Entertainment are discussing plans for the acquisition of shares of SM Entertainment. The shares up for grabs are said to be currently owned by SM Entertainment’s largest shareholder, Lee Soo Man. The deal may involve either all or a portion of his shares. It is also reported that both candidates are discussing methods to either trade new shares or to exchange shares, in order to come up with the most ideal deal.

Currently, both Naver and Kakao Entertainment are involved highly in the production and distribution of content. From webtoons to webnovels, music and radio, both are often competitors in this field. By acquiring a stake in SM Entertainment, it is a win-win for both SM Entertainment and them as SM Entertainment artists will be given a larger platform to expand their network.

As for how Lee Soo Man feels about this, it was reported that he has decided a partnership is necessary to further enhance the company. Allegedly, he shared with acquaintances that he had no intention of passing down his stakes in the company to his children. cr

original post: theqoo

1. Well, I think the K-pop market will change a lot…

2. Lee Soo Man, please throw away your Chinese dream..

3. Why would Lee Soo Man sell his shares..??? What happens to SM if the largest shareholder changes?

4. Hul, will Lee Soo Man retire? Why would he sell all his shares?

5. This is not bad news for SM but good news for SM!!!!!

6. I don’t like this but Naver is better than Kakao anyway

7. Wow, Lee Soo Man is selling SM? What’s going on with K-pop?…

8. I like SM’s songs, but what will happen to SM in the future?

9. Naver fighting

10. I worry that this will take away the freedom to plan…

Categories: Theqoo