SM Entertainment acquires Yoo Jae-Suk and Kang Ho-Dong, some of the most reputable and influential MCs in Korean Entertainment, after becoming a major shareholder of FNC Entertainment.
On March 14, FNC Entertainment announced they have established a strategic collaboration system with SM Entertainment.
This “strategic collaboration system” turns out to be a merger. SM Entertainment (SM) purchased a portion of FNC Ad Culture shares and combined the new shares through a capital increase with a third-party allotment. Securing 13.48 million shares, SM emerged as the largest shareholder with 31 percent. On the other hand, FNC entertainment has an 18 percent equity stake with 8 million shares.
In this deal, FNC Entertainment said it would focus on its core business areas. This includes strengthening artist line-up and create new growth momentum by securing new business investments. Moreover, industry insiders estimate that the merger is a win-win for both companies.
FNC Ad Culture Group has secured strong content power by mobilizing the capabilities of both TV drams and entertainment programs. In particular, artists from both companies like Yoo Jae-suk, Kang Ho-dong, and Shin Dong-yup will be tremendous assets. Together, they can enhance the overall influence of the production of entertainment content in Korea.
Yoo Jae-suk is currently a permanent cast member on “Infinity Challenge,” “Running Man,” “Happy Together,” “Sugar Man,” and “The Culprit is You.” Likewise, Kang Ho-dong is apart of the “Knowing Bros,” “Let’s Eat Dinner Together,” and “Talkmon” presently. Other artists under FNC Entertainment includes F.T. Island, CNBLUE, AOA, and N.Flying.
Through this merger, it is expected that FNC and SM will expand existing content projects to overseas markets. More, there are also plans to delve into global lifestyle business, such as retail, fashion, and leisure. Additionally, there are plans to form partnerships with global companies.
Meanwhile, SM Entertainment recently acquired KeyEast.
Translated by O.C
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