News CJ ENM and SM respond to reports of CJ ENM acquiring SM (1 Viewer)

[Abeamus]

On October 21, Maeil Business Newspaper reported that CJ ENM would be acquiring SM Entertainment and publicizing the news on October 22.

The outlet reported that while CJ ENM would be taking SM Entertainment’s executive producer Lee Soo Man’s status as the company’s largest shareholder, Lee Soo Man would continue to carry out the role of the head who directs the company’s content business.

Lee Soo Man currently owns 18.73 percent of SM Entertainment shares. According to the report, CJ ENM assesses SM Entertainment’s total value to range from 3 trillion to 4 trillion won (approximately $2.5 billion to 3.4 billion) and plans to buy all of Lee Soo Man’s shares at a price between 600 billion to 700 billion won (approximately $509 million to 594 million).

According to the news outlet, the two companies are also discussing the possibility of CJ ENM splitting their music business sector to merge with SM Entertainment. They are also considering the option to make CJ ENM the largest shareholder while having Lee Soo Man keep some of his shares.

In response to the report, SM Entertainment stated, “We are having discussions with various companies from several angles, and it is not true that the acquisition agreement will be signed on October 22.”

CJ ENM also said, “We are reviewing various methods for the growth of our music business, but nothing is confirmed.”

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[RandAlThor]

Still not happy about this coalescing going on in the industry.

Nothing good in any field happens for, customers when Mega conglomerate's happen.

The more music companies all are under one roof the worse it is for us all.