Article: [Exclusive] CJ ENM acquires SM Entertainment... contract finalized as early as 22nd
Source: Maeil Economy
CJ ENM is set to acquire SM Entertainment and take over management.
According to an investment banking (IB) official on the 21st, CJ ENM will sign an MOU to acquire SM as early as the 22nd. The two sides are coordinating details of the MOU and sign the official contract within a few weeks. CJ ENM plans on finalizing the transaction within the year.
CJ ENM will purchase Lee Soo-man's 18.73% majority owner stake in SM for 600-700 billion won for a company valuation of 3.4 trillion won.
An IB industry official revealed, "CJ ENM was aggressive with their offer in order to come to a deal."
Lee Soo-man will be kept on as CEO and representative producer to oversee SM's content business, however, they're still discussing whether CJ's music business division will be split or merged with SM.
Lee Soo-man is in talks to see whether he can retain some shares in SM after the acquisition.
- [+626, -17] I'm glad they weren't acquired by China. YG and JYP need to be watch out too. China is on the prowl to eat up all Korean entertainment agencies.
- [+503, -94] Ugh ~ Looks like SM idols are going to get thrown into all CJ shows nows. Sick and tired of it already!
- [+339, -37] MAMAs are already boring enough because CJ has its claws all over it. Looks like all daesangs and bonsangs will go to SM artists now. This isn't a good sign at all. This is a sign Kpop industry is becoming a dog-eat-dog system, it's only going to get worse from here... sick of this!
- [+153, -19] Lee Soo-man system? How is that his system?
- [+115, -6] I'd rather SM just stay as SM alone...ugh
- [+79, -1] So that's why SM artists were all over 'Street Woman Fighter' ㅋㅋ
- [+65, -6] Aigoo, we're going to end up like Japan music industry at this rate. All the conglomerates there just buy up all the agencies and push and pull out artists to ensure they have no competition. Because of that, the quality ends up dropping too. Even now, SM artists are taking over all the shows even if they're boring but PD's have no choice but to keep them on. Mnet is a sell out that's on the clutches of SM now too.. honestly this is a dangerous prediction for the future of K entertainment music and drama. The Chinese dream will get worse and worse...this is the end of the Hallyu Wave.
- [+36, -0] SM idols are going to be all over tvN. They'll be in all sorts of varieties and dramas.
- [+34, -1] CJ's influence in the entertainment industry is already too huge...big companies are just taking it all.
- [+15, -1] Ugh, this is the worst acquisition ever! It hasn't been that long since Mnet rigged all their survival shows and now a broadcast company and entertainment agency are merging? Can you imagine what is going to happen with any survival CJ ENM produces? SM is going to win everything! Ugh ~ This is the end of Kpop as we know it ㅋㅋㅋㅋ
- [+9, -4] Times are changing. The days of bright and flashy SM are over..