News Kakao becomes 2nd largest shareholder in SM Entertainment; LSM sues (1 Viewer)

[the101]

Kakao buys 9% of SM Entertainment, now 2nd largest shareholder

Kakao is buying 9.05 percent of SM Entertainment for 217.2 billion won ($172.8 million) to become the second-largest shareholder of the K-pop company, the two companies said Tuesday. The tech company bought 1.23 million newly-issued shares at ...

koreajoongangdaily.joins.com

Well ain't this a hot mess.



To catch you up on the story:

LSM has been trying to share off his large shares in SM for about a year now and every time a deal falls through. Part of the sticking point is LSM's production company. It receives a crazy amount of money for producing songs. Eliminating it would increase operating profit up to 60%.

Now enter Align, which owns 1.1% of SM Entertainment, last year, they wanted things audited to look into this expense and created an agreement to revise and eliminate the partnership with LSM's production company. (It's something shareholders have been fussing about for years.) This is the 3.0 that opens it up to other producers. This is also where it gets sticky. Apparently, they didn't tell him about this termination ahead of time? Rumors are saying he didn't know he was going to be taken out by the current co-CEOs, which include his nephew. But that nephew is also scheduled to be replaced in the board of directors vote in March. All of these removals are also sending stocks soaring.

 

[mysteric]

probably true then that he was the one blocking the kakao sale
also makes sense that the shares have been going up; pretty sure lsm's company was just a shell company to funnel more money into his personal account
at the end of the day, the shareholders are the owners of the company and the c suite nothing but higher level managers hired to take care of it and it's pretty clear that said owners of sm wanted lsm out for a while now

 

[the101]

probably true then that he was the one blocking the kakao sale
also makes sense that the shares have been going up; pretty sure lsm's company was just a shell company to funnel more money into his personal account
at the end of the day, the shareholders are the owners of the company and the c suite nothing but higher level managers hired to take care of it and it's pretty clear that said owners of sm wanted lsm out for a while now

Definitely. And certainly if i'm a shareholder, I'm looking around the industry seeing big groups like SVT and SKZ have 2-3 comeback each year and wondering why my heavy hitters that do the bulk of my business only cb once a year (NCT 127, NCT Dream), let alone watching what's happening with gg which churn ever faster (aside from BP) and wondering why aespa is sleeping.

 

[Yelena_Belova]

@Selfmate Explain yourself!

Jokes aside, I didn’t know about any of this, and it sounds interesting.

 

[Selfmate]

I said I was trying to sell my shares to kakao not have SM issue them with new shares thereby diluting my shares!!!

no more Mr nice guy time for Lee SUE Man