[Courtesy of CJ ENM]
SEOUL – Talks are underway between CJ ENM, credited with promoting Hallyu (Korean Cultural Wave), and SM Entertainment, an entertainment powerhouse that has been spearheading the expansion of K-pop, over potential business links through a stock purchase agreement or other means. There have been unconfirmed reports of a joint venture, but the two companies have declined to give clear answers.
CJ ENM said on October 25 that it plans to acquire shares in SM to strengthen its music content business. “We are looking to acquire shares in SM Entertainment and synergy to strengthen our music content business, but nothing has been decided,” the group said in a brief regulatory filing, promising to make another announcement by now. November 25 when confirmed.
Lee Soo-man, who controls 18.72% of SM, has been silent on reports that CJ ENM plans to start a new company by splitting up his music business and merging it with SM, which operates as a label, a artistic agency and musical production. company and is known for leading k-pop with early overseas hits such as HOT, SES, and BoA. The label has also represented K-pop artists such as TVXQ !, Super Junior, Girls’ Generation, Shinee, Exo, Red Velvet, NCT, SuperM and Aespa.
CJ ENM has launched an aggressive push for the production of content targeting the global market. SM has proposed joint ventures or investments with IT startups, following Lee’s new vision to pursue a “content universe” where original content will be infinitely expanded and recreated by individual prosumers who consume and produce.
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