Rumors have been circulating in social media that SM Entertainment is now under the management of Kakao Entertainment (formerly Kakao M) after their successful acquisition of Lee Soo Man’s shares in the company. But, is it really true though? Here’s the complete official statement from Kakao Entertainment about buying Lee Soo Man’s shares.
The Long and Fierce Battle Over Lee Soo Man’s Shares
The fierce fights over Lee Soo Man’s shares in SM Entertainment have not been over yet. For almost a year, Lee Soo Man’s shares in SM Entertainment have been the goal of five major companies. From Naver, Tencent, HYBE, CJ, and Kakao Entertainment, all eyes of these giants are on SM Entertainment, home of KWANGYA.
For several days, rumors have been circulating that SM Entertainment is now under Kakao Entertainment (formerly Kakao M) due to their successful acquisition after buying Lee Soo Man’s shares. That is because on March 11, Korea Economy TV reported that Kakao Entertainment had come into agreement in buying the entire Lee Soo Man’s shares in SM Entertainment.
Producer and SM Entertainment founder Lee Soo Man is now holding the largest shares in the company of 18,73 percent. Therefore, whoever managed to take over his shares will be acquiring the rights of managing SM Entertainment.
Who is Buying Lee Soo Man’s Shares in SM Entertainment?
The long and fierce battle over Lee Soo Man’s shares in SM Entertainment has been going on since last year. Various major companies had been eyeing the shares and acquisition for SM Entertainment. After all, SME is one of the largest entertainment companies with the most powerful influence in South Korea.
Along with Naver and Tencent who fiercely competed over the shares, HYBE, CJ, and Kakao Entertainment were the largest candidates who were most likely successful in appealing Lee Soo Man.
Unfortunately, Lee Soo Man had rejected the offers from HYBE, the home company of BTS. That is why HYBE failed to win the acquisition of SM Entertainment and is now out of options.
And although CJ had sent their very own chairwoman to meet Lee Soo Man directly, it was Kakao Entertainment who became the most likely candidate to win the battle.
Kakao was Winning the Fight of Buying Lee Soo Man’s Shares
With their previous proposal of 2.5 trillion won (approximately 2.2 billion USD), Kakao Entertainment was winning the fight over Lee Soo Man’s shares in SM Entertainment. In addition, if the deal is successful, it means SM Entertainment will be soon under the management of Kakao Entertainment (formerly Kakao M).
SM Entertainment Under Kakao M? Here’s The Official Statement from Kakao Entertainment
So, is SM Entertainment now really under Kakao M? In the midst of the high excitement about this possible acquisition between two large entities in South Korea, Kakao Entertainment finally stated their official position.
According to the company, there has yet been a concrete decision about buying Lee Soo Man’s shares in SM Entertainment. Kakao Entertainment is currently reviewing various options in strengthening its business globally. And this includes partnerships and equity investments.
“We have been consistently reviewing a wide variety of possible measures, including partnerships and equity investment to strengthen the competitiveness of our global content business. However, nothing concrete has yet been decided at the moment.”Kakao Entertainment.
Lee Soo Man & SM Entertainment: Kpop Founding Fathers
So, what do you think about this possible acquisition of SM Entertainment by Kakao? SM Entertainment is one of the top four major entertainment companies in South Korea. Besides, it has almost the largest power and influence in South Korean music industry.
Founded in 1995 by Lee Soo Man, the company has been one of the founding fathers of Kpop with its powerful idols from H.O.T, S.E.S, Shinhwa, BoA, TVXQ, Super Junior, Girls’ Generation, SHINee, EXO, Red Velvet, NCT, and aespa.
Therefore, acquiring the company means taking over one of the largest icons in the Kpop industry.
At last, feel free to share your thoughts in the comments. And please stay with Kpoppost and our Instagram, Facebook, and Twitter for more updates. In the meantime, here’s the complete MV of SMTOWN LIVE 2022 with the current idols of SM Entertainment company.
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