Big Moves By ‘Big Three Member: SM Entertainment To Be Acquired By CJ ENM?
SM Artists such as Red Velvet, NCT and its sub-units, Super Juniors, aespa, Girls' Generation, and more to have a new boss? Find out here!
As per recent rumors and reports, CJ ENM is going to be acquiring one of the 'Big Three' companies, SM Entertainment. This is supposedly going to occur after an agreement was reached by the two agencies to transfer the shares of Lee Soo Man.
The reports pen that an agreement was reached for CJ ENM to acquire SM Entertainment as early as the 22nd of October. CJ ENM will be acquiring an 18.73% stake in the entertainment agency, which was previously held by Lee Soo Man.
Furthermore, CJ ENM valued SM Entertainment between ₩3.00 trillion KRW, which is around $2.55 billion USD, and ₩4.00 trillion KRW, which is around $3.40 billion USD, as CJ ENM has purchased the majority of Lee Soo Man's stake for within the range of ₩600 billion KRW, which is around $510 million USD, to ₩700 billion KRW, which is around $595 million USD.
Notably, CJ ENM is going to let Lee Soo Man handle SM Entertainment and he will be in charge of overall operations with SM Entertainment's contents.
Additionally, the two companies are continuing talks on whether or not to merge CJ ENM and SM Entertainment's music business into one. Regardless, Lee Soo Man is still going to be handing over the majority of his shares, but will still have a portion of them.
SM Entertainment and CJ ENM have yet to confirm the recent reports!
If the reports are confirmed by SM Entertainment and/or CJ ENM, this would mean that the acquisition of the company is more like a new business venture and is in no way showing any financial issues.
Stay tuned for more news and updates regarding your favorite K-pop artist!
