SM Entertainment is looking to sell some of its subsidiary companies.
On February 16, SM Entertainment stated, "We are reviewing the sale of non-core assets, which was one of the details announced in the press release on January 20, 2023. However, nothing has been decided at this time."
Additionally, the label explained, "Dear U, which was one of the assets mentioned for sale, is not currently subject to the review for sale. When related facts are confirmed in the near future or within a month, we will make another announcement."
On this day, a media outlet cited the investment banking (IB) industry and reported that SM Entertainment has decided to sell its subsidiaries such as Dear U (31.98% stake), SM C&C (29.56%), and Keyeast (28.38%) and has selected an advisory company.
Dear U is a fan messenger platform, famous for 'Dear U Bubble'. It is a company that has shown clear growth potential within SM Entertainment. It recorded sales of 49.2 billion KRW and an operating profit of 16.3 billion KRW on a separate basis last year. In particular, it is evaluated as the only platform that competes with Weverse, a fan communication platform belonging to HYBE.
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Okay, first yes LSM is where the problem started. He is greedy but he is also the founder and the creator of the company. Maybe he deserved the royalties or maybe he don't. Not sure about that. But the big problem happen because his nephew make a drastic decision without discussing with LSM first. As the main shareholder, LSM deserved to know what is happening. I am pretty sure if they held a negotiation meeting with LSM this problem wouldn't happen. Depends how the meeting goes btw. But seriously, the nephew is kinda dumb in a lot of way. I feel bad for the subsidiary companies. They hope to be better under SM but they fall together because of LSM nephew.
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