SM and Kakao saying bye?

SM Entertainment opened its mouth on the recent rumors of the sale and the replacement of management.
On the 5th, SM said in its official position, “Unfounded speculation and rumors have been expanded and reproduced by various media reports raised in relation to the company since around November 2023. The series of rumors are seriously undermining the company’s image. In response, we briefly clarify our position on some of the following points.”
Regarding the investigation by the Kakao Audit Committee, “Kakao’s audit committee has requested the company to submit a large amount of data regarding the preparation of Kakao’s consolidated financial statements from early December 2023. Among them are requests for PC forensics from key executives. There were many questions and regrets regarding the scope and method of these requests, but we cooperated as much as possible to help accurate understanding,” he said.
Clarifying SM entertainment Kakao relationship
Regarding the rumor of Kakao’s sale of SM, he said, “It has been reported through a number of media, but it was announced that it was not true through Kakao’s public announcement on January 29, 2024. In addition, the rumor of the replacement of our management team is also false. We have contacted with Kakao and Kakao is not considering a change of management. We are continuing close business cooperation to pursue joint growth and create mutual synergy with Kakao and Kakao Entertainment at this moment.”
So it seems SM and Kakao is not thinking of the split.
Early last year, Kakao became the largest shareholder by securing a 39.87 percent stake in SM after a fierce takeover battle with HYBE. However, in the process, there were speculation suspected of manipulating the price of SM shares to prevent HYBE’s public purchase, and Bae Jae-hyun, Kakao’s investment chief, was eventually arrested and indicted.
Previous articles about SM entertainment,
HYBE, JYP and SM 2024 plans, CLICK HERE.
SM official ‘X’ account, https://x.com/SMTOWNGLOBAL?s=20