Posted by Sophie-Ha 25 days ago

SM tries to convince the minority shareholders saying "HYBE will give all the good songs, choreo to their artists first."


The current management of SM Entertainment, which is in a fierce battle for management rights with competitor HYBE, sent a letter to minority shareholders ahead of the shareholders' meeting scheduled for the end of this month, asking for support, saying, "HYBE's board of directors will, of course, give new business opportunities to HYBE (not SM).

According to a March 1 report, SM recently sent a letter titled 'To the shareholders of SM Entertainment Co., Ltd.' to minority shareholders.

On the outside of the letter envelope, there is a promise of “an independent board of directors for all shareholders, not specific shareholders,” and “a dividend of 1,200 KRW per share.” Also, “(SM) Recommendation of the board of directors” is circled, and “Former major shareholder, Lee Soo Man’s proposal,” is marked with an X. 

In the letter, SM said, "This is an important event that will never happen again in the history of Korean entertainment."

The current management also emphasized, "This year's shareholders' meeting is the last opportunity to completely resolve SM's governance issues that have been going on for the past decade and raise its corporate value to the next level as an entertainment company with the best artist pool in Korea."

SM especially attached a separate question and answer (Q&A) document to persuade the shareholders.

In response to one question, "Isn't it good if SM is acquired by HYBE, which is larger and belongs to the same industry?" SM responded, "Good trainees, good songs, good choreographers, and concert planning will be allocated to Big Hit (BTS' agency), Pledis (Seventeen's agency), ADOR (NewJeans' agency), and Source Music (LE SSERAFIM's agency), since HYBE has a bigger stake in these affiliate companies."

SM continued, "If HYBE owns only up to 40% of SM shares and the remaining 60% is held by general shareholders, conflicts of interest will inevitably arise between SM shareholders and HYBE shareholders," and added, "HYBE is the biggest competitor in the industry competing for first and second place with SM."

They also presented an explanation for its support for Kakao's capital increase and issuance of convertible bonds at 90,000 KRW and its opposition to HYBE's 120,000 KRW tender offer.

SM explained, "Kakao's paid-in capital increase and issuance of convertible bonds are for strategic collaboration with us. Since the issuance volume is only 9% of the total, there is no management right, and as the business area does not overlap with our company, we can expect sufficient synergy to help our shareholder value."

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bambamgot7-5,888 pts 25 days ago 0
25 days ago

[+] This user has a poor community rating, click here to read this comment.

35 (+47 / -12)
Koove4531 pts 25 days ago 12
25 days ago

I mean it’s ridiculous. Like these 2 CEO’s were the ones who messed up everything. Ideal solution would have been both of them resigning and a sane person left in charge of SM. If there was a person in SM sane and valued SM , I don’t think LSM would have turned to HYBE in the first place. Then lsm’s nephew runs a shit show and the SM Executives drag this thing to YT , instead of trying to convince the other shareholders in person and giving official statements. Like what say does the public even have here. People are worried about the artists, not the company. This thing is ridiculous about the facilities being less accessible to SM, I mean at the end of the day it’s business. SM’s artists have the capability to return profits if they are promoted properly. And HYBE didn’t intervene with any musical production of the sub labels. I mean SM don’t have any right to say this shit, when they themselves are disrespecting their artists. Like Birthday of red velvet was such a good song . If they had red velvet promote a bit more the song would have blown up. And they didn’t even have a tour and cancelled a concert and never re scheduled it . Aespa performed on music show 4 times. Like that’s ridiculous. Like if they had more promotional activities that’s ok. But Aespa barely promoted girls. And they should have promoted illusion more. They couldn’t clarify Lucas situation and made things worse for him. They should have at least handled the fake accusations. And they are over working mark and haechan . None of yutas or winwins s solo gigs were posted on NCT, NCT 127 or wayv’s account. Giselle was also mistreated by the company. Like what right do they have . NCT 127 Ay-yo , stamp on it are really good songs. If they had planned their promotions properly the songs would have done way better. Like with all the shit they have been running so far. They should resign

26 (+32 / -6)

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