On February 11, it was revealed that one of China's largest companies, Alibaba, will be purchasing a minority stake inSM Entertainment through a stock purchase.
The Chinese company now owns 4% of SM Entertainment's stocks, which might not seem like much, but raises a lot of curiosity as to what the two companies will have in store for the future. Definitely SM Entertainment is advancing gradually into becoming a more globalized company.
SEE ALSO: SM Entertainment denies reports about a million investment from Chinese e-commerce company Alibaba
Now, SM will advance through Alibaba Group's online music distribution and marketing within China and more. The issuing price of new shares is about 41,000 KRW (~ $34 USD) per share while the number of shares issued was 870,000, meaning Alibaba spent about 35.5 billion KRW (~ $30 million USD) for their 4% stake in SM.
Back in 2014, SM had denied reports of Alibaba investing $90 million USD into the company, but looks like they're now ready to go ahead with a partnership!
Source: SM Entertainment Press Release
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