SM Ent.: “Rumors about the acquisition contract with CJ tomorrow is groundless, discussions are underway with various companies” (Official)

SM Entertainment recently announced its official position on the signing of an M&A (company merger and acquisition) contract with CJ E&M.

SM Entertainment (hereinafter referred to as SM) said in the afternoon of October 21st, “We are discussing various things with various companies, and the rumor that we will sign an acquisition contract on the 22nd is not true.”

Earlier, Maeil Business reported that CJ would sign a contract to acquire SM on Oct 22nd and they would soon announce the details. In addition, the media outlet reported that SM’s general producer Lee Soo-man said that he would give up the position of SM’s largest shareholder to CJ, but would play the role of the head of the overall content business.

As of 1 p.m. on the 21st, shortly after the report, SM C&C shares soared to 5,590 won, rose 10.69% (540 won) from the previous day. As of 2 p.m., it fell to 5,020 won. According to the investment banking industry, Lee Soo-man expressed his intention to give up all 18.7% of his SM stake.

Lee Soo-man is the founder and largest shareholder of SM. The value of his stake is known to be around 300 billion won while SM’s market capitalization is around KRW 1.7925 trillion as of the afternoon of October 21. SM includes a number of global singers representing the Korean Wave, including H.O.T. Kangta; Boa; TVXQ’s U-Know Yunho, Max Changmin; SHINee; Girls’ Generation‘s Taeyeon, Yuri, Sunny, Hyoyeon; EXO; Red Velvet; NCT; and aespa.

SM is also successfully operating the world’s first online-only concert platform “Beyond LIVE” and the global mobile service platform “Dear U Bubble” owned by its subsidiary SM Studios.