Comes announced that it has invested in SM Entertainment (SM), a representative entertainment company in Korea. As of October 31, SM’s shares acquired by Comes are about 990,000 shares, about 4.2%.
Comes explained that the current value of SM, Korea’s leading cultural entertainment company, is relatively undervalued, and the growth value is high in the future. In addition, the general shareholders’ meeting, such as the so-called white knight, did not invest for the purpose of voting rights in a particular direction, and it was not decided at all.
Founded in 1995, SM is the best entertainment company recognized by Data, and is becoming a representative Korean wave company that led the globalization of Korean popular culture. In 2021, the company has a solid performance, including sales of 700 billion won and net profit of more than 130 billion won, and has the highest level of artist portfolio among major entertainment companies.
Comes expects to maximize the value of each company by creating business synergy through future discussions.
Comes Group is expanding into comprehensive content companies such as dramas, movies, webtoons, and performances. In particular, it is strengthening its entry into Korean culture through My Music Taste, a subsidiary of CG and VFX affiliates Fiji Wick Studio and K-Pop artists. In addition, new business sectors such as blockchain and meth uses are also built. These include the Blockchain Main net PLA (Expla), which is led by the Com2uS Group, and Meta Bus Infrastructure Com2 Bus.
SM is also creating high added value in various fields such as music, performances, broadcasting, and new media through many K-POP stars recognized in the global market beyond Korea, and ‘Wild field Project’ using VFX, virtual reality, and virtual studio. As such, the expansion of the digital meta bus business is also accelerating the global spread of Korean popular culture.
Each company’s business and recent actions are expected to enable a wide range of business collaboration in the blockchain and meths sectors as well as expanding the global market of K-contents through various consultations.
An official from Comes said, This investment was made from a neutral position because it was judged that SM’s current stock value was higher than the current share price. In addition, we also considered the possibility of various discussions to maximize the value of each company by creating synergy in the future. We expect that we can lead the future cultural industry by consolidating the strong global IP power and content and business know-how of each company. He said.