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Local entertainment giant CJ ENM confirmed its interest in acquiring the iconic K-pop agency SM Entertainment, Thursday.
"CJ ENM has opened a lot of possibilities. It's true we are in discussions with a lot of entities, but we can't open up on the specifics or the target companies we are talking with. Regarding CJ ENM's possibility of acquiring a stake in SM Entertainment, nothing has been decided on yet for the time being," a CJ ENM official said.
According to entertainment industry sources, CJ ENM was planning to spend between 600 billion won and 700 billion won to acquire the 18.73 percent stake in SM Entertainment owned by founder Lee Soo-man. CJ ENM calculated the stake valuation by estimating SM's corporate value at somewhere between 3 trillion won and 4 trillion won.
Despite the stake sale, Lee, who is also the largest shareholder in the country's top talent agency, is set to keep leading the agency. CJ ENM plans to separate its music business unit once its stake acquisition in SM is completed.
Regarding this, SM Entertainment said it was in talks with various companies for a partial stake sale. Kakao has also been mentioned as another candidate to take over SM Entertainment. But sources said Kakao, which operates the country's top mobile messenger KakaoTalk, is set to drop its bid as it has been coming under severe public criticism for its aggressive expansion into various unrelated fields.
CR: Korea Times
original post: here
1. The comments saying "unfounded truth" are hilariousㅋㅋㅋㅋㅋㅋ (T/N: they are making fun of how SM writes their titles?)
2. To be honest, SM's reputation has been on the decline lately so from Lee Sooman's point of view, it's much better to get that much money at this point. SM's celebrities must like this news too. Hyumsuk should get his hands off YG too now
3. Hul, CJ is eating everyone up
4. It's true that nothing has been confirmed yet but this was exactly what BigHit did too no? They won't talk about this for nothing
5. I saw an article saying that they were in a 80 billion won deficit. Looks like they sold the company in the end
6. Hul, is this even ok?
7. Looks like SM is getting sold after all. Is it because of the deficit?
8. Hul so SM is getting acquired...
9. Hul... they were expecting 50 billion won in profit this year though.. they must be thinking that it's a profit to sell it when K-pop is so popular... but it's a shame ㅜ
10. SM's stocks were f*cking raising and suddenly got sold
11. There were way more articles talking about Kakao acquiring SM though.. No matter what people say, CJ's influence in the entertainment world is immense. Seeing all the talks about the MAMA ending and what not, they did well to acquire SMㅋㅋㅋㅋ They have a lot of singers who are doing well so a lot of people have inferiority complex towards them.
12. Wowㅋㅋㅋ It's been years since CJ has been fighting with SM. There was even a time when they didn't appear on Mnet. What's happening?
13. Hul crazy
14. They've been on bad terms for so many years only to get acquired... You really can't tell people's future
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