Kakao Officially Denies Rumors of Selling SM Entertainment

[Polaris_Tae]

Kakao has officially declared that the rumors about the sale of SM Entertainment are not true, as announced in a public disclosure on the 29th.

The rumors about Kakao's sale of SM Entertainment really started to pick up around the end of last year.

The speculation was fueled by the controversy over stock price manipulation during Kakao's acquisition process of SM Entertainment, which led to the arrest of Bae Jae-hyun, the Investment Chief of the group, plunging the entire group into a crisis.

Additionally, Kakao is currently conducting an audit of SM Entertainment's financial statements and executives, following the demands of the company's Board Audit Committee.

Kakao has also requested documentation regarding the appropriateness of investments made by SM Entertainment after its incorporation into Kakao, which were carried out without prior consultation with the parent company, through an external law firm.

However, Kakao continues to deny the rumors regarding the sale of SM Entertainment.

Regarding the rumors about the dismissal of SM Entertainment's management team, Kakao maintains that no decision can be made as the audit results have not yet been released.



On the 29th, a media outlet reported that Kakao was secretly negotiating with NCSoft to sell SM Entertainment.

Additionally, the financial authorities' signal that it's inappropriate for Kakao, under suspicion of stock price manipulation, to continue holding SM Entertainment is also analyzed as a reason for the sale rumors. From NCSoft's perspective, facing prolonged stock price volatility, the need for a new dynamic business venture seems to have fueled the speculation about the sale of SM Entertainment.

As these audit activities and situations intertwined, leading to sale rumors, Kakao immediately responded. In a clarification disclosure released on the same day, Kakao stated, "The rumors about the sale of SM Entertainment are not true."

NCSoft also stated that the rumors are baseless. A representative of the company mentioned, "We have neither received any acquisition proposal nor have we considered any acquisition."

source
Translation via Reddit since my Korean language skills start and end at basic greetings skdjk

 

[Seunghee's Eyebrows]

This really feels like season 3 of this looooong k-drama

 

[Kudo]

I mean they bought it with 170ish million which is cheaper than a single hollywood project so if they sell it it won’t be a big lose to kakao ent

 

[UMJI MOODS]

Take what big business says with a little salt.
​

 

[Pandaa]

cool will u buy SM hallyuplusususer ?