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  • Karina Lee

SM STOCK SOARS ON KAKAO MERGER RUMORS

K-Mooning.

SM C&C's stock price is skyrocketing on rumors of Kakao's imminent acquisition of SM.


According to the Korea Exchange on the 15th, as of 10:00 a.m., it is trading at 7,300 won (15.53%) compared to the previous trading day, 5,430 won.


SM C&C closed after-hours trading at 4,925 won, up 4.79% from the closing price as of 6 pm the previous day. Since the first report of Kakao's acquisition of SM on the 11th, it has been on the rise every day.


The industry's interest is pouring in as news that Kakao's acquisition of SM Entertainment's stake is imminent. Kakao is reported to have proposed to purchase an 18.72% stake in SM Entertainment from its largest shareholder, Lee Soo-man, executive producer, at a price two to three times higher than the stock price.


Both Kakao and SM Entertainment took a reserved position that they were considering various measures for the acquisition rumor.


A Kakao official said, "We have been continuously reviewing various measures such as business alliances and equity investments to strengthen the competitiveness of the global content business, but no concrete decisions have been made at this time." SM Entertainment also said, "We are discussing various aspects of business alliances and equity investment, but nothing has been confirmed so far."


If Kakao acquires SM, interest in the merger is high as it will immediately catapult KAKAO to the second-largest entertainment agency after HYBE.

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