CJ ENM announced that it is not true that they participated in the acquisition of shares of SM Entertainment.

On February 15 KST, CJ ENM announced that the rumor that they would join hands with Kakao Entertainment to acquire shares of SM Entertainment was "completely unfounded".

On the February 7, SM Entertainment entered into a strategic partnership with Kakao Entertainment and signed a contract to acquire new stocks and convertible bonds. They then announced that it had secured a 9.05% stake in SM, and that they would become the second largest shareholder of SM Entertainment through this investment.

SM founder and former general producer Lee Soo Man protested that the current co-CEOs (Lee Seong Soo, Tak Young Jun) agreed to the proposal without any consultation with him. He additionally filed an injunction claiming illegal business practices.

Subsequently, as the largest shareholder, Lee Soo Man sold his 14.8% stake in SM to HYBE, led by Bang Si Hyuk on February 10. HYBE, which became SM's largest shareholder, announced on February 10 KST that it had signed a contract to acquire 14.8% of Lee Soo Man's shares.

While it was previously reported that Kakao was considering joining forces with CJ ENM, it seems those rumors are now put to rest.