Kakao Secures 9.05% Stake In SM Entertainment And Becomes Second Largest Shareholder

They will work together to face the fierce competition in the global music market.

Kakao has now become SM Entertainment’s second-largest shareholder, securing a 9.05% stake in the company. They plan to strengthen their competitiveness in the music and content business with SM Entertainment to bring the “beyond Korea” vision to life.

In addition, a three-party business agreement was signed by both companies to enhance the global status of K-Culture in the rapidly changing music and content environment. Kakao and SM will promote global management business together by utilizing networks such as overseas partners of each company.

The two companies will also cooperate in strengthening IP competitiveness, such as co-planning K-Pop artists through global auditions. They will also collaborate on producing and distributing global albums and music.

The three companies will use Kakao’s AI and other technological capabilities to prepare future businesses. Kakao will also contribute to developing the Seoul Arena, a complex cultural facility in Seoul.

Bae Jae Hyun, CEO of Kakao Community Investment, stated, “Through this investment and cooperation, we expect that the two companies will be of great help to each other in responding to the fierce competition in the global music and content market and targeting the global mainstream of K-Content.”

Source: it chosun