SM Entertainment has announced a global partnership with Tencent Music Entertainment Group, soon to become a major shareholder in SM after purchasing approximately 2.21 million of the company's shares from HYBE Labels at a price of over 243 billion KRW (~ $178 million USD).
According to SM Entertainment on May 29 KST, SM and Tencent Music Entertainment Group have officially signed an MOU as of this day, pledging to build a strong system of mutual cooperation and growth.
The MOU will not only encompass cooperation in the area of music distribution, but also the nurturing of new artists aiming for success on the Asian market, IP development, event and tour planning and production in China, etc. First, SM Entertainment and Tencent will work together to launch China's next superstar boy group within the next 2~3 years. SM Entertainment will contribute its talent discovery, training, and production capabilities, while Tencent will handle promotions, music distribution, and management, all with the goal of creating Asia's top boy group.
Additionally, SM and Tencent will cooperate closely to develop IP including physical and digital photocards, character MD, pop-up stores, and media content. In terms of event production, SM Entertainment and Tencent intend on hosting 'SMTOWN LIVE' in Hong Kong in 2026 as the starter for their lasting partnership, before going on to plan nationwide tours for SM Entertainment artists in China, which will include live streaming services.
Through this strategic partnership, SM Entertainment hopes to expand its global reach and influence, including within the Chinese market, while Tencent seeks to take advantage of SM's strong IP development and production capacities.
Meanwhile, Tencent's buyout of HYBE's shares will proceed after May 30 KST.
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