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Chinese company Alibaba purchases stake in SM Entertainment

Posted by alim17312 pts Wednesday, February 10, 2016
misc.

On February 11, it was revealed that one of China's largest companies, Alibaba, will be purchasing a minority stake in SM Entertainment through a stock purchase.


The Chinese company now owns 4% of SM Entertainment's stocks, which might not seem like much, but raises a lot of curiosity as to what the two companies will have in store for the future. Definitely SM Entertainment is advancing gradually into becoming a more globalized company.


SEE ALSO: SM Entertainment denies reports about a million investment from Chinese e-commerce company Alibaba


Now, SM will advance through Alibaba Group's online music distribution and marketing within China and more. The issuing price of new shares is about 41,000 KRW (~ $34 USD) per share while the number of shares issued was 870,000, meaning Alibaba spent about 35.5 billion KRW (~ $30 million USD) for their 4% stake in SM.


Back in 2014, SM had denied reports of Alibaba investing $90 million USD into the company, but looks like they're now ready to go ahead with a partnership!


Source: SM Entertainment Press Release

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