[Asia Economy Reporter Moon Hyewon] Naver, which was reportedly engaged in a behind-the-scenes competition with Kakao and CJ ENM while considering acquiring shares of SM Entertainment, announced on the 21st that it has ultimately decided not to invest in the shares.
On the same day, Naver disclosed, "As part of strengthening our business competitiveness, we are reviewing various options, but we have decided not to consider investment in this matter."
The disclosure officer is Kim Namseon, Naver's Chief Financial Officer (CFO).
This is the first time Naver has officially confirmed its policy not to invest in the acquisition of SM Entertainment shares.
In May of last year, when Maeil Business Newspaper reported that Naver and Kakao were competing to acquire some or all of the shares held by SM Entertainment's largest shareholder, representative producer Lee Soo-man (19.21%), both companies were asked for clarification by the Korea Exchange.
Since then, the two companies have repeatedly posted clarification disclosures stating that "there are currently no specific decisions made," at intervals ranging from one month to six months.
In October of last year, it was also revealed that CJ ENM was in talks to acquire shares of SM Entertainment, attracting attention.
A Kakao official stated, "Kakao has not been confirmed as the company acquiring shares of SM Entertainment."
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