SM Entertainment exits restaurant business in Japan Move is part of restructuring of Korean entertainment company’s Japanese operations
Translated by Ryu Ho-joung 공개 2021-10-08 07:41:53
이 기사는 2021년 10월 08일 07:33 thebell 에 표출된 기사입니다.
SM Entertainment, the South Korean entertainment company behind boy bands EXO and NCT, will exit its restaurant business in Japan and use the money saved to expand its platform business, a move to catch up with changes accelerated by the Covid-19 pandemic.The company’s Japanese unit, SM Entertainment Japan, will merge with its wholly owned restaurant subsidiary SM F&B Development Japan, according to a regulatory filing on Tuesday. The transaction is expected to be completed on December 1.
The merger is to save costs and enhance management efficiency, the company said in the filing. SM F&B Development Japan recorded a net loss of 6.9 billion won ($5.8 million) in 2020 as the pandemic has crippled the restaurant industry. The decision in effect marks the company’s exit from the Japanese restaurant market.
The merger is also part of a broader restructuring of the company’s Japanese operations. In April last year SMEJ Plus, a fan club service, and SMEJ were separated from SM Entertainment Japan. Four months later, SMEJ was merged into Stream Media Corporation (SMC), one of the entertainment company’s affiliates listed on the Japanese stock exchange, making SMC a key subsidiary of SM Entertainment Japan.
SMC operates Japan’s satellite channels such as KNTV and DATV, while its mainstay business is the distribution of K-pop and K-drama content. It also represents South Korean artists working in Japan.
SM Entertainment is expected to divert the money saved from restructuring to the platform business, with SMC likely to play a pivotal role to that end.
SMC owns a 29.95% stake in online concert platform Beyond Live Corporation and a 47.54% stake in karaoke app Everysing Japan, which used to be held by fan community platform operator DearU.
SMC raised 30 billion won from Naver in November 2020 in a deal that gave the South Korean internet giant a 7.5% stake in the Japanese company. JYP Entertainment, the second largest shareholder in DearU, acquired a 13% stake in Beyond Live Corporation in July 2020.
Meanwhile, the sale process for SM Entertainment founder Lee Soo-man’s controlling stake is underway. Frontrunners in the race include Kakao Entertainment, CJ ENM and Naver. (Reporting by Pil-woo Choi)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 현대건설, '힐스테이트 죽림더프라우드' 분양 중
- [Red & Blue]새내기주 한싹, 무상증자 수혜주 부각
- 아이티센, 일본 IT서비스 시장 공략 '잰걸음'
- 소니드로보틱스, 온디바이스 비전 AI ‘브레인봇’ 공개
- (여자)아이들 '우기’, 초동 55만장 돌파 '하프밀리언셀러'
- [ICTK road to IPO]미국 국방산업 타깃, 사업 확장성 '눈길'
- [Red & Blue]'500% 무증' 스튜디오미르, IP 확보 '성장동력 발굴'
- [코스닥 주총 돋보기]피엔티, 이사회서 드러난 '중국 신사업 의지'
- [thebell note]XR 기술의 사회적 가치
- [Rating Watch]SK하이닉스 글로벌 신용도 상향, 엔비디아에 달렸다?