S.Korea’s Kakao Corp signs $173M deal to acquire 9.05% stake in SM Entertainment

SEOUL — South Korea’s Kakao Corp said on Tuesday it will acquire a 9.05% stake in SM Entertainment, an entertainment agency behind K-pop acts including NCT and Aespa, in a deal worth 217.2 billion won ($172.8 million).

The move will see Kakao acquire 112 billion won worth of shares in SM Entertainment as well as convertible bonds worth 105 billion won, becoming the second-largest shareholder of the company when the deal is complete.

The two will team up to pursue joint management projects together including global K-pop auditions, Kakao said in an emailed statement.

“We hope to work together in competing in the heavily contested global music and content market through this investment,” said Kakao Chief Investment Officer Bae Jae-hyun. — Reuters