JYP acquires stake in SM's IT subsidiary
JYP Entertainment has acquired 23.3 percent share of DearU, SM Entertainment's IT subsidiary, and hopes to expand into the digital platform market through SM's fan community service Lysn, the two companies said Friday.
JYP bought 9.1 percent of DearU shares last month and an additional 14.1 percent on Friday for approximately 21.4 billion won in total, according to a report published by the Financial Supervisory Service.
DearU started fan community app Lysn in 2018 to connect K-pop stars and their fans in the digital space. Bubble is a service offered by Lysn through which fans get messages from stars in an online chat format. The one-on-one chat room format gives a feeling of intimacy to the fans.
This year, DearU reported 8.9 billion won in sales in the first quarter and 3.2 in operating profit, the first time it reported a profit.
JYP Entertainment's artists — 2PM, DAY6, Twice, Stray Kids and ITZY — joined Bubble and have been communicating with fans.
The acquisition extends the two companies' collaborations, which started last year when they started a joint company named Beyond LIVE Corporation (BLC), which specializes in online concerts.
"JYP Entertainment will invest more in IT platforms that allow fans to become closer to our artists," the agency said.
BY YOON SO-YEON [email@example.com]