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Posted by Susan-Han Thursday, March 10, 2022

Kakao denies reports that it is acquiring SM Entertainment

AKP STAFF

On March 11, a representative of Kakao Entertainment addressed ongoing rumors that the company has decided to acquire SM Entertainment

According to Kakao on this day, "In order to strengthen our competitiveness in the global contents market, we have considered various modes of working with SM Entertainment including a cooperative business partnership, investment, etc, but thus far, nothing has been confirmed." 

Rumors of SM Entertainment's potential acquisition by entertainment conglomerates including Kakao Entertainment and CJ ENM have stirred up the business industry since some time in 2020. Previously, it was reported that SM Entertainment's founder and head producer Lee Soo Man has put up approximately 18.7% of his shares in SM Entertainment for sale. 

Then, earlier this week, one business outlet claimed that Kakao has offered Lee Soo Man up to 1 trillion KRW (~ $800 million USD) for the acquisition of his shares, the largest percentage of shares owned by any sole party in SM Entertainment. 

Meanwhile, insiders have attributed Lee Soo Man's decision to sell his shares in SM Entertainment largely to the significant business tax associated with retaining the management rights of the entertainment corporation.

  1. Lee Soo Man
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Tshhsja
Tshhsja12 pts Monday, March 28, 2022 0
Monday, March 28, 2022

Lmfao all of this is a big publicity stunt

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alexS
alexS Allkill VIP 472 pts Friday, March 11, 2022 0
Friday, March 11, 2022

It's not exactly a denial is it?

"thus far, nothing has been confirmed."

As in, we cannot confirm nor deny.

This move will def. shift Kakao Ent to the top.

Imagine having SM, Antenna, Starship, Edam etc all together.

Only Hybe could counter that.

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