JYP Entertainment joins SM Entertainment

JYP Entertainment acquired a 23.3% stake in Dear U, a subsidiary of SM Entertainment, and began to expand its influence in the platform industry.

On the afternoon of June 4th, JYP Entertainment announced the acquisition of an additional 14.1% of common stock in Dear U, a company owned by SM Studios Co., Ltd. Earlier on the 26th of last month, 1.682 million ordinary shares of Dear U, which represents a 9.1% share, were acquired for about 8.4 billion won, and the final number of shares acquired was 4,285,192 shares with a share of 23.3%, and the investment amount was about 21.4 billion won.

Dear U, in particular, has received favorable reviews for the successful operation of “Bubble”, a service where artists and fans share their daily lives with each other, and also shows positive performances. Showing a surplus this year, having achieved 8.9 billion won in sales and 3.2 billion won in operating profit in the first quarter, and is expected to continue to grow as the number of artists increases. to come up. Artists from JYP Entertainment, 2PM, DAY6, TWICE, STRAY KIDS and ITZY have also entered “Bubble” since 2020 and actively communicate with domestic and overseas fans.

JYP Entertainment has decided to acquire its shares with the aim of creating a strategic synergy with Dear U. JYP and SM Entertainment, who have created “Beyond LIVE Corporation” (BLC), a company specializing in the world’s first online concerts ” Beyond LIVE “in August of last year, will continue their partnership through this investment. In addition, JYP Entertainment plans to expand its business into more diverse platform business areas through its involvement with Dear U amid the recent rise of fan platforms in the TV market. K-pop.

Based on this equity investment, JYP Entertainment plans to invest more actively in IT platforms that strengthen the bonds between its artists and fans, as well as increase the value of the company through business development. more future-oriented entertainment.

Journalist: Shawn
Translator: Shawn
Source: JYP / SM Entertainment

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