[Asia Economy Reporter Ryu Tae-min] SM Entertainment, which joined hands with Kakao in response to HYBE's acquisition attempt, has decided to exclusively entrust Kakao Entertainment with the distribution of albums and music tracks.
According to the music industry and investment banks (IB) on the 23rd, SM and Kakao Entertainment signed a business cooperation agreement on the 7th of this month, which included provisions related to paid-in capital increase, convertible bond issuance and acquisition, as well as this content. SM agreed to grant Kakao Entertainment exclusive rights for domestic album and music distribution. It is also reported that they will cooperate to channel overseas album and music distribution through Kakao Entertainment (including its affiliates).
Currently, the distribution of music and albums for SM artists is handled by Dreamus Company, in which SM holds a partial stake. Kakao Entertainment is responsible for the distribution of music and albums for artists such as IVE, Monsta X, IU, and STAYC.
In addition, SM is said to have agreed to cooperate so that domestic concert and fan meeting ticket distribution for its artists will also be handled through Kakao Entertainment.
In the cooperation plan announcement with Kakao released on YouTube the day before, SM stated, "In terms of global strategy, the operation of integrated corporations or joint ventures in key regions, as well as the business coverage enhancement through the global platform already established by Kakao, will be strengthened."
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