SM Entertainment, South Korea’s leading entertainment agency, said Thursday it has formed a strategic partnership with Chinese e-commerce giant Alibaba Group to strengthen its music marketing in China.
Under the deal, Alibaba will purchase 870,000 shares of SM’s newly issued stocks for 40,808 won per share to claim a 4 percent stake in the agency for 35.5 billion won ($29.7 million).
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SM Entertainment founder and chairman Lee Soo-man (SM Entertainment) |
The deal will also enable SM to expand its music and merchandising business further into China through Alibaba Music Group’s online music distribution platforms and marketing channels.
“Through this partnership we plan to create synergies in various fields, including China’s digital music industry as well as other areas,” SM Entertainment said in a statement. “We will continue to localize and expand our business in China.”
Alibaba Music Group was founded in July 2015 as part of Alibaba’s efforts to actively expand into the online music industry. The group currently engages in a variety of entertainment, lifestyle and media businesses.
By Sohn Ji-young (
jys@heraldcorp.com)
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