According to financial insiders, Naver is desperate?...

[satoori]

After YG having back to back scandals and BTS (Bighit) wanting to their own thing away from them, Naver is hoping to have more success with SM. 

 

 

Spoiler

Naver To Invest Over $80 Million USD Into SM Entertainment After Losing BTS
They feel the need to secure SM Entertainment’s IP.

Naver is preparing to heavily invest in SM Entertainment, with plans to invest around ₩100 billion KRW ($83,077,240 USD) into the K-Pop giant.

According to an exclusive report from Hankyung on July 20, Naver and SM Entertainment are in the process of negotiating a deal that will see a capital increase via the issuing of new stocks for a third party.

"Naver and SM Entertainment signed an MOU in April to jointly promote their global business, and Naver is seeking to secure a stake in SM Entertainment."

Industry insiders estimate the investment will be ₩100 billion KRW, which is the same amount Naver invested into YG Entertainment in 2017. Using the price of SM Entertainment’s stock as of the markets closing, this would amount to 12.64% of SM Entertainment shares, making Naver the second largest shareholder behind Lee Soo Man, who holds 18.73%.

Naver plans on using SM Entertainment’s IP (intellectual property) to strengthen its own contents. An insider shared why they believe Naver is investing even more heavily into SM Entertainment.

"In April 2020, BTS held an online concert through YouTube, not through Naver’s V Live. They earned at least ₩25 billion KRW ($20,769,310 USD) in revenue from 756,000 ticket sales.

Naver, which lost K-POP’s most popular IP in BTS’s, must have felt the need to invest into SM Entertainment to construct a stable relationship."

original source

 

 

Edited July 20, 2020 by satoori

[Jaejoong01]

Could be...

Hopefully, Naver doesn't hold a grudge against BTS/Bighit because of that. 

[Mees Madds]

Desperate to spend their money?

[alisha ....]

It is very difficult to speculate on stocks but I think Big 3 should be careful with Chinese investors. Fantagio and CUBE didn't see it coming

[Rojen]

What have they done in YG tho,...I haven't seen anything special... 

[Muggie]

6 minutes ago, Rojen said:

What have they done in YG tho,...I haven't seen anything special... 

Uhmm most noticable maybe VIBE

[satoori]

3 hours ago, Mees Madds said:

Desperate to spend their money?

Desperate to "make" more money.

Vlive (Naver) has been hit hard financially.

BTS was huge part of growing Vlive initially. They were sort of the face of it. Especially for the first few years. Lol I remember everyone use to joke about how active BTS were on the app. BTS were also the first group to do many things on it thanks to Vlive. Making BTS a huge part of Vlive being profitable too. They're still the most popular group on the app. However since last year and little before fans have noticed Bighit has been trying to move away more and more from using vlive/naver exclusively.  Especially the fan-paid services. With the creation of their own fancafe/streaming site Weverse, even using Youtube Live, plus as the article mentioned they held their BangBangCon outside of Vlive.

Also with Bighit being so successful with out Vlive, this could encourage other companies too.

 

 

OT: One of the biggest concerns from 50+ Agencies in Kpop had to do with online streaming and the cost.

Spoiler

The agency representatives were also asked how they’ve been dealing with the changes they’ve had to go through due to the COVID-19 pandemic. One representative stated, “Our concerts have been canceled and album promotional activities are difficult as well. We’ve been continuing activities through ‘on-tact’ channels, but I think it would help to get additional support to rent venues or produce larger scale content.” Another individual stated, “The industry is facing many losses, especially small and medium-sized agencies. Compared to larger agencies, there are limits to the scope of advertisement and activities we can do, and we don’t have systems set in place for online concerts, so we hope the government will help provide a realistic support system.”

The representatives also discussed how there is a need to set industry standards for charges when it comes to using online platforms. One person noted, “As digital music and online concerts continue to take up a bigger portion of our revenues, there is a need to set better standards for reasonable profit division for online content. Currently, distribution companies and platforms take too much of the profits.” There were also hopes that the government would help support the establishment of global online festivals and other online promotional activities.
https://onehallyu.com/topic/817753-sports-seoul-industry-representatives-vote-on-best-in-k-pop-2020-power-people-survey/

So I wonder how SM and Naver will work things out.

Edited July 20, 2020 by satoori

[satoori]

3 hours ago, Jaejoong01 said:

Could be...

Hopefully, Naver doesn't hold a grudge against BTS/Bighit because of that. 

I hope so too.

Tho BTS articles are rarely on he front page to begin with, so...

3 hours ago, alisha .... said:

It is very difficult to speculate on stocks but I think Big 3 should be careful with Chinese investors. Fantagio and CUBE didn't see it coming

Agree about Chinese investors ughhh

1 hour ago, Rojen said:

What have they done in YG tho,...I haven't seen anything special... 

Some people would say exclusive access to Naver front pages and ability to filter/censor certain articles and comments...but there's not actual evidence of that...

You're right, Naver has not done anything on the surface(?)

[Vagus]

Im hoping this is a sign that finally sm will release their ngg!! 

[Rojen]

46 minutes ago, satoori said:

 

Some people would say exclusive access to Naver front pages and ability to filter/censor certain articles and comments...but there's not actual evidence of that...

You're right, Naver has not done anything on the surface(?)

 

I remember people saying they censored BS artices, but I always saw YHS and Seungri faces on there so...

But anways, it's not like Naver helped BP to have a full album so whatever xd

[satoori]

1 hour ago, Vagus said:

Im hoping this is a sign that finally sm will release their ngg!! 

Even with out Naver, NGG were probably coming soon! But yea SM have more money now, so hopefully they come this year..

1 hour ago, Rojen said:

 

I remember people saying they censored BS artices, but I always saw YHS and Seungri faces on there so...

But anways, it's not like Naver helped BP to have a full album so whatever xd

Lol honestly the Seungri/YHS issue was to big not cover. Tho even then some people were saying Naver were filtering things, but idk...in general after all that mess can't say I'm surprise Naver is looking around for other companies to invest in. I'm more surprise SM accepted o.o...well at least such a large percentage of their shares..

Agree. When will BP full album comeT^T

[abra]

This has probably been in the works for a while

[Guest]

That's a big share their getting here! It feels like Naver is investing a lot in entertainment companies nowadays