SM Entertainment Acquires Major Shares Of Smaller Talent Agencies
SM Entertainment Enters Strategic Alliance With FNC Entertainment & KeyEast Co.
SM Entertainment, one of South Korea’s major entertainment agencies, procured South Korea’s largest actor management company, KeyEast, and stock and management rights of FNC Add Culture, a subsidiary of FNC Entertainment.
S.M. Entertainment is set to purchase Bae Yong Joon’s 25.12 major share in KeyEast Co. for 50 billion won. The acquisition will give the Winter Sonata star shares amounting to 35 billion won, earning him a major stockholder slot in SM Entertainment. He will also act as a global strategic adviser for SM group marketing and key stores.
KeyEast houses popular and rising actors which include Kim Soo Hyun, Ju Ji Hoon, Jung Ryu Won, Han Ye Seul, Uhm Jung Hwa, and Woo Do Hwan. SM will acquire Digital Adventure (DA), a subsidiary of KeyEast, which is the largest Korean Wave content platform operator in Japan.
The artist management, the Korean Wave media business, the fan club, and the performance event business, which KeyEast and DA have been running, are expected to generate stronger and broader synergies within SM’s long-term business acumen. It will diversify the mobile and online platform business based on entertainment content in Korea, Japan and the global market.
“This acquisition will enable KeyEast to integrate into the S.M. Entertainment Group and continue to build on its existing reputation, as well as supporting its broader engagement with SM’s global network,” an official from the agency said.
In a separate regulatory filing, S.M. Entertainment said it will purchase a 30.51 percent interest in drama and media company FNC Add Culture for 30 billion won to become the largest shareholder. The stake purchase is designed to further nurture the drama and media business of FNC Add Culture in synergy with S.M. Entertainment. It is also aiming to push the company’s global lifestyle sector, including retail, food and beverage, fashion and leisure.