SM Entertainment has confirmed they will be partnering with Kakao and will move forward with their SM 3.0 plan.
In a statement to various media outlets including Herald Pop, SM Entertainment has confirmed they will be working with Kakao and will move forward with their SM 3.0 plan that the company previously outlined.
SM Entertainment will respect HYBE and Kakao’s agreement to have HYBE halt their attempt at acquiring SM Entertainment’s management rights.
With this agreement, SM will speed up our SM 3.0 strategy that we promised to shareholders, partners, fans, and artists to achieve our future vision of leaping forward into becoming a global entertainment company, focused on our fans and shareholders. Through this, we will continue to expand our corporate values and stakeholder returns for all shareholders.
In a statement today, Kakao stated that they will ensure autonomous and independent operations for SM to respect SM Entertainment’s most powerful assets and driving forces, which are their executives, artists, and fandom. Kakao will help speed up the global growth for the company, focusing on future visions and strategic direction, which includes the plan for SM 3.0 that was presented by the current management. The board of directors for SM 3.0 will be newly launched at the upcoming shareholders’ meeting on March 31 and will create the world’s best “IP x IT” synergy with Kakao and open up the “Next Level” of the K-Pop industry.
We would like to express our deepest gratitude to the SM shareholders, fans, employees, artists, and all stakeholders who have encouraged and supported SM Entertainment despite the unexpected confusion since the announcement of SM 3.0 back on February 3.
— SM Entertainment
It was previously announced that HYBE would be backing out of the race to acquire SM Entertainment after participating in negotiations with HYBE.
Kakao Will Acquire SM Entertainment: HYBE To Pursue Platform Business Partnership Instead
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