SM Entertainment is looking to sell some of its subsidiary companies.
On February 16, SM Entertainment said, “We are investigating the sale of non-core assets, which is one of the details announced in the press release on January 20, 2023. However, nothing has been decided now. “
Additionally, the label explains, “Dear U, which is one of the properties discussed for sale, is not currently under review for sale. If the relevant facts are confirmed in the near future or within a month, we will make an announcement. “
On this day, a media outlet cited the investment banking (IB) industry and reported that SM Entertainment has decided to sell its subsidiaries such as Dear U (31.98% stake), SM C&C (29.56%), and East (28.38%) and chose a consulting firm.
Dear U is a fan messenger platform, famous for ‘Dear U Bubble’. This is a company that shows clear growth potential within SM Entertainment. It recorded sales of 49.2 billion KRW and an operating profit of 16.3 billion KRW on a separate basis last year. In particular, it is estimated as the only platform that competes with Weverse, a fan communication platform that owns Movements.
