[BREAKING] SM CEO confirms they've secured 100 billion investment from Naver

Source: MK Sports

SM Entertainment has secured rumored investment from Naver.

SM has attracted a total investment of 100 billion won (~$83M) from Naver to SM's affiliates SMEJ Plus, Mystic Story and Content Fund. 

Through this investment, Naver will invest in SM Group in various ways to expand the global market for V Live 'Fanship' and discover digital video contents. They will also cooperate with SM to create a production fund to discover next-generation video content. 

Naver CEO Han Sung-sook stated, "Naver is building a new competitive edge in non face-to-face digital performance market with advanced live and community platform technologies and big data-based paid business models. Through this investment, we will increase the competitiveness of 'Fanship' and show new innovations in the global market."

SM CEO Lee Sung-soo stated, "We are looking forward to synergy between the two companies as we join hands with Naver that's competitive in non-face-to-face content platforms in the era of On-Tact. SM will open a new era of entertainment by providing differentiated contents to global fans."

An insider previously revealed that the estimated amount Naver would invest to acquire SM (now confirmed) was 100 billion won (~$83,000,000) the same amount they paid to acquire YG in 2017. Naver would acquire a 12.64% stake in SM becoming the 2nd largest shareholder at the company after executive producer Lee Soo Man who owns 18.73%.

Meanwhile, the two companies formed a strategic alliance in April to promote joint global businesses to strengthen their global entertainment competitiveness.

What are your thoughts on the investment?