[BREAKING] Insider reveals Naver has finalized a heavy investment in SM following YG acquisition + netizens react— Daily Naver (@dailynaver) July 20, 2020
#SMEntertainment #SMTOWN #YGEntertainment #Naver pic.twitter.com/XfE0Rj54I9
After losing BTS, Naver has announced a heavy investment in SM following YG.
An insider from the financial investment industry revealed on the 20th, "Naver and SM have decided to invest their shares in the form of paid-in capital increase allocated to third parties. Naver signed a memorandum of understanding (MOU) in April to jointly promote its global business with SM and Naver is currently seeking to secure a stake in SM."
Analysts believe that Naver's heavy investment in SM after YG is because they want to strengthen the link between the internet and the Korean entertainment industry by focusing on Hallyu content.
The insider revealed that the estimated amount Naver invested to acquire SM is reportedly 100 billion won (~$83,000,000) the same amount they paid to acquire YG in 2017. Naver will acquire a 12.64% stake in SM becoming the 2nd largest shareholder at the company after executive producer Lee Soo Man who owns 18.73%.
Naver plans to use popular KPOP intellectual property owned by SM to strengthen its contents.
An analyst from a securities firm stated, "In April, BTS held an online concert on YouTube and not Naver's broadcasting platform V Live. The group earned at least 25 billion won in ticket revenue from 756,600 viewers. Naver must have felt the need to invest its stake in SM to form a stable relationship after losing BTS, the most popular intellectual property in Kpop."
[+1,022, -11] There's going to be a lot of SM articles
[+833, -26] BTS' concert wasn't on YouTube but on Big Hit's mobile platform WeVerse. If you're going to write an article check the facts first! And why is BTS being added in news about Naver investing in SM? Why is the fact that BTS used their own platform and not Naver's V app being used as an expression that "Naver lost BTS"? Aren't BTS still doing varieties on V live?
[+630, -42] What is SM doing? EXO has to enlist in the army soon and Red Velvet's contract expirations are coming up quickly. NCT isn't at the level yet to replace EXO...are they even going to promote this year? Also there's still no word on SM rookie girl group debut?
[+374, -32] I have more to say but I won't comment
[+181, -22] You should've done a better job before then
[+133, -4] Wow..really mean of Naver to do something like this. They earned a lot of money using BT21 characters and earned huge profits from BTS promoting on V app but they only promoted positive articles about agencies that they invested their money on the main page even though BTS is doing better. Often times BTS has gotten the best records but they have yet to promote them on the main page. Really cunning of them..
[+128, -4] What are they talking about? They've been trying to steal BTS' own contents many times and they're writing articles like this? Does Naver think V app is the only platform? Didn't they already try to overcharge fans on the app since the beginning?
[+124, -29] That explains why Lee Soo Man was plastered on the main page
[+83, -5] Wasn't it BTS that raised up V app anyway?
[+79, -4] Was it even theirs to be taken in the first place? Really..[scoffs]
Source: @dailynaver, Naver via Daily Naver