Earlier today, a media outlet reported that CJ ENM has decided to acquire Lee Soo ManŌĆÖs share in SM Entertainment (18.72%) and sign the contract tomorrow. However, both companies soon denied the report. CJ ENM stated, ŌĆ£We are reviewing various methods for growing the music business, but nothing has been confirmed.ŌĆØ SM also denied the M&A rumors, saying, ŌĆ£The report about us signing an acquisition contract on the 22nd is not true.ŌĆØ
SM Entertainment is an entertainment label that producer Lee Soo Man founded in 1995. In addition to the global musician training and management business, SM successfully operated various businesses such as the worldŌĆÖs first online-only concert ŌĆ£Beyond LIVEŌĆØ and the global mobile service platform ŌĆ£DearU bubble.ŌĆØ For over three decades, Lee has reigned as the largest shareholder and as a chief producer. He rose to prominence as the representative K-pop producer by launching some of the biggest groups. His list includes TVXQ, SHINee, GirlsŌĆÖ Generation, EXO, Red Velvet, NCT, and aespa. According to insiders, it is said that Lee expressed his intention to sell all of his stake, which is said to be worth about 300 billion KRW (about $255 million). Besides CJ ENM, Kakao Entertainment has also shown interest in this upcoming takeover. ┬Ā Source (1)
