Kakao Group has expanded its foothold in the entertainment industry by becoming the largest shareholder of SM Entertainment (SM). The group recently announced the successful acquisition of SM stocks through a public offering, surpassing the expected quantity by over 2x. The offering period from March 7 to 24 saw a total of 18,882,270 shares applied for, making the final competition rate 2.27:1. Due to the excess number of shares applied for, pro-rata allocation is expected to be applied. With a total stake of 39.90%, Kakao Group now holds the majority of shares in SM.
The move comes as no surprise, considering the group’s continued expansion in the industry, including its investment in multiple K-pop agencies. With this latest development, Kakao Group looks poised to further dominate the entertainment industry.