CJ ENM won't acquire shares of SM, pursue business partnership

CJ ENM's logo [NEWS1]

CJ ENM will not acquire shares of SM Entertainment nor pursue a business partnership, according to the entertainment company on Friday.

“We’ve reviewed acquiring shares of SM Entertainment to strengthen our music business, but we’ve arrived to the conclusion not to do so,” said CJ ENM in an electronic disclosure.

CJ ENM has considered acquiring SM for a long time, according to sources, and was believed to be a top contender to become a new owner of SM when rumors related to the company's acquirement first arose in 2021.

After HYBE became SM’s largest shareholder as of Wednesday with 14.8 percent of the company it bought from founder Lee Soo-man for 422.8 billion won ($323.8 million), it was rumored that it would partner up with Kakao to acquire SM.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]