Founded in 1989 by SMYG Entertainment
Idol discharge 'first generation enter' to H.O.T and S.E.S ~ RED Velvet
18.72% stake sale...he's seventy years old this year and no successor
According to the popular music industry on the 20th, CJ ENM is in talks with SM founder and largest shareholder Lee Soo-man, producer, to acquire.
Meanwhile, IT-based platform giant Kakao has been named a potential candidate for the SM acquisition, but recently it has stepped out of the takeover. It was reported that there was a big disagreement with the producer over the terms of the acquisition. In addition, there is an interpretation that Kakao, which has been merged with the acquisition regardless of the recent field, has felt burdened by the wide-ranging movement.
Starting with H.O.T, which made its debut in 1996 and made the typical idol group in Korea, it produced top idol groups from S.E.S, Shinhwa, BoA, TVXQ, Girls' Generation EXO, NCT and RED Velvet.
In particular, even though he is seventy years old in Korea this year, he has been recognized for his progressive production ability by producing the metabus girl group 'Espa' with avatar.
The producer's stake is 18.72% (about 323.1 billion won in equity value), while some observers say it could hand over the company to his two sons. However, the two sons are said to be not interested in the entertainment company Harvard Business School.
Above all, the producer seems to have judged that it is difficult to lead the company steadily through the succession of Harvard Business School rights like domestic large corporations due to the nature of the entertainment industry, which is highly changed in World. He did not find a reason to succeed to Harvard Business School right by paying high taxes such as gift tax.
In addition, there is a reason why entertainment companies are gradually becoming bigger and therefore, it is no longer necessary to engage in Harvard Business School as transparent Harvard Business School is requiRED. He said he will concentrate more on producing what he can do well.
The producer has already resigned as registeRED director in 2010 and has also appointed young people Lee Sung-soo and Tak Young-joon as co-chairmen last year.
This is the trend of the entertainment industry. This year, Chairman Bang Si-hyeok Hive has also been putting his position down and concentrating on producer work. Park Jin-young, the founder of JYP Entertainment, is also a registeRED executive, but he is concentrating on producing content as a producer by stepping down from his position.
"I think that the company is more aware of the fact that its roots are in music as the company grows bigger because it is from musicians," said an official from YG Entertainment, a medium-sized K-pop song. "The company stabilizes and professional Harvard Business School people maintain it, I saw.
In addition, as the entertainment industry has become larger in World, it has become difficult for companies that produce only K-pop and some contents to survive. This is why the producer actively discussed the acquisition with a company with media or platforms like CJ ENM or Kakao.
However, as this producer values content, or intellectual property rights (IP), it is expected that it will require the preservation of its role as a producer in any form even if the company is acquiRED.
Unlike other YG Entertainment CEOs, CJ ENM is likely to propose their long-term audition program YG Entertainment to this producer who has not been active in the audition program.
Currently, the producer is working with Hollywood's large production company MGM to produce an audition program for launching NCT - Hollywood, which will be based in the United States.
Above all, CJ ENM is the best company to implement 'SM Culture Universe' (SMCU), which SM is currently living in the company.
SMCU is a metabus content in which SM groups connect and expand various types of independent IPs such as music, music videos, and performances in their respective World or integrated World Pavilion.
CJ ENM encompasses not only media platforms but also music, film, drama and entertainment production capabilities. The company has capital and systems that can help the company expand into a variety of forms, which is why the industry expects huge synergy if SM and CJ ENM meet.
In addition, this producer is also interested in forming a K-pop cultural complex in the region, which can be a great help for the distribution business and CJ ENM's distribution network.
Currently, CJ ENM operates a joint label with Hive, Billy Prab, which currently belongs to the boy group Enhyphen. Billy Prab will audition for the girl group and start production soon.
However, if SM is acquiRED by CJ ENM, CJ ENM will have to pay more attention to SM than Hive.
SM has actually been one of the top three K-pop YG Entertainment companies that have been used until recently. However, as Hive, which owns BTS, became a representative company of K-pop, the image of the old "unique" was relieved.
In particular, as Hive is being reborn as a platform company based on BTS' IP, it needed to collaborate with platform companies or take other measures from SM's perspective. The acquisition of CJ ENM is one of the answers to such problems.
"If CJ ENM's acquisition of SM is concluded, there may be a change in the K-pop market, which has been reorganized into the Hive 1st round system," said a senior entertainment company official who has been involved in mergers and acquisitions with other entertainment companies. "It is essential to grow a size in a situation where it is competing with overseas countries. Other entertainment companies are merging with acquisitions, which can be a chance to burst into water. "