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Corporate intrigue is at the heart of K-pop

fkorean ans The highly successful pop music industry has become accustomed to intrigue surrounding new groups, the romances of band members and their misbehavior.now a new source Potassium– Popular dramas appear in unexpected places. February 10 SeashellsAn entertainment company representing the genre’s best known, BTSAgreed to buy 14.8% stake SM Entertainment, a competitor, comes from its founder and former head producer Lee Soo Man.Li, who is no longer involved in the day-to-day business of the company, will be left with about 4%, which makes Seashells its largest shareholder. In pursuit of closer ties, Seashells At the same time, a tender offer was launched to acquire another 25% of the shares at a premium similar to the market price of the shares paid to Mr. Li. SM Entertainment said it would resist any attempt at a hostile takeover. The stage is set for a corporate showdown worthy of any popular feud.

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Seashells and SM Entertainment is the largest of the two listings Potassium-Popular companies with a total market capitalization approaching $9 billion. A full merger would create an industry juggernaut that would capture a significant portion of South Korea’s music production business. SM Entertainment is particularly prominent in talent scouting. It established its own school in Seoul three years ago and now offers everything from vocals to dance to production for three years. SeashellsFor its part, it dominates music distribution through Weverse, a digital platform that hosts exclusive content such as live concerts and classes BTS Members teach foreign fans Korean.

Vertical integration is not uncommon in Korean show business. JYP entertainment, another Potassium-pop house, there is a television-Production subsidiary. eternal light Another competitor, Entertainment, runs a modeling agency. They transform raw materials (artists) into finished products (content), using a fine-tuned production process. As Lee Jang-woo of Kyungpook National University observes, this innovation strategy has much in common with South Korea’s high-tech manufacturing. Potassium– Pop labels can learn just as much from conglomerates like Samsung and Hyundai as they can from Western labels like Warner and Universal.

for Seashellscombine SM Entertainment will diversify it, stay away from BTS, said Douglas Kim, an independent analyst at Korea Inc. This is especially important as the supergroup has confirmed it will be suspended until 2025, while seven of its members will undergo 18 months of mandatory military service. SM Entertainment company executives may worry that an investigation from South Korea’s antitrust agency, which must review any deal involving more than a 15 percent stake, could be a distraction. They’d rather pursue a partnership with South Korean internet giant Kakao, to which they just sold a 9% stake in their company in newly issued shares.

This may not be enough to prevent Seashells. SM The entertainment company’s shares have risen nearly 50% since the sale of Mr Lee’s stake to the entertainment company Seashells announcement, suggesting that investors like the voice of the union very much.

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