Despite Kakao's official denial of the rumors, speculation continues to circulate among investment bankers and industry insiders. 

Following rumors of Kakao Entertainment looking to sell its stake in SM Entertainment, Kakao has officially declared the rumors are not true. However, according to investment bankers and industry insiders on February 2nd, multiple strategic investors and financial investors are considering buying SM Entertainment. 

HYBE Labels, who stepped out from last year's acquisition bidding war against Kakao, is one of them. Allegedly, Bang Si Hyuk has suggested private equity funds to acquire SM Entertainment. One IB industry insider commented, "I heard Bang Si Hyuk suggested in private meetings with a few financial investors that they together acquire the entertainment because it wouldn't look good in public if he himself stepped up." 

MGM and F&F Hldgs are the other few. F&F Hldgs recently launched F&F Entertainment to expand its business into the entertainment industry. Acquiring SM Entertainment would boost their status in the industry. 

However, rumors of NCSOFT acquiring or Lee Soo Man buying back his stakes are unlikely according to the insiders. IB insiders say both NCSOFT and Lee Soo Man lack the capital to acquire SM Entertainment, as NCSOFT did not have a profitable year while Lee Soo Man paid huge taxes when he sold off his shares so he likely has less cash now. 

Meanwhile, Kakao has continued to deny rumors about the sale of SM Entertainment, and it seems any notable decision would be made only after the Chief Executive of Kakao Investment gets bailed out from his stock manipulation charges.