SM Executives "Support Kakao's Tender Offer"

On the 7th, 26 executives holding positions of center director or higher, including the co-CEO of SM Entertainment, announced their support for Kakao and Kakao Entertainment's public tender offer for SM shares.

All 26 SM executives stated in a press release that "Unlike HYBE, which seeks to take control of SM's board through a hostile merger and acquisition (M&A), Kakao respects SM's unique traditions and identity, guarantees autonomous and independent operations as well as continuous and proactive activities of artists, and supports an independent board recommended by SM's management. We believe Kakao is the optimal horizontal and strategic partner for the successful implementation of SM 3.0."

They added, "The collaboration between SM and Kakao signifies the meeting of world-class content and platforms," and explained, "Through cooperation with Kakao, SM expects to strengthen its platform capabilities and achieve unlimited content expansion of SM IP."

Furthermore, they stated, "SM's content will be disseminated through Kakao's IT assets and platforms, and the integrated fan platform that SM is building will become more meaningful and capable of establishing a high-quality IP content and platform ecosystem through technological cooperation with Kakao."

They expressed trust in "Kakao's competitiveness to expand SM's powerful IP globally by integrating it with various platforms and AI technologies, including Kakao's management and employees," and said, "Going forward, we will work with Kakao to faithfully implement the SM 3.0 strategy promised to SM shareholders, members, fans, and artists, leap forward as a fan- and shareholder-centered global entertainment company, and further enhance corporate value and shareholder return policies."

Meanwhile, Kakao and Kakao Entertainment have decided to invest up to 1.25 trillion KRW to secure shares in SM. The two companies announced on the same day that they will conduct a public tender offer for 8,333,641 shares of SM Entertainment at 150,000 KRW per share. The tender offer price is 15.3% higher than the closing price on the 6th (130,100 KRW), and the target quantity corresponds to 35% of the total issued shares of SM Entertainment. The tender offer will end on the 26th of this month.