SM Entertainment has expanded their business even further!
On March 14, KOSDAQ (Korean Securities Dealers Automated Quotations) announced that SM Entertainment is acquiring entertainment agency KeyEast and drama production company FNC Add Culture, a subsidiary of FNC Entertainment.
SM Entertainment acquired 19,545,071 shares (25.12 percent) of KeyEast stocks, which belonged to actor Bae Yong Joon, for 50 billion won (approximately $47 million).
With the agreement, Bae Yong Joon has also acquired new shares of SM Entertainment, becoming a major stockholder of SM Entertainment. He will now act as a marketing adviser for SM Group and a global strategy adviser for KeyEast.
In addition, SM Entertainment has acquired 13,483,865 shares (30.51 percent) of FNC Add Culture stocks for 30 billion won (approximately $28 million).
FNC Entertainment now holds 8,100,000 shares (18 percent) of FNC Add Culture, being the second larger stockholder for FNC Add Culture.
SM Entertainment will work to improve FNC Add Culture’s existing businesses, including drama and broadcast production, and also expand into various global lifestyle businesses including retail, F&B, fashion, and leisure.