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Holy shit y'all.
The last two days have been bananapants.
Okay, so if you haven't read part 1-3, you absolutely do need to.
All the background you could ever want.
Let's recap very quickly: Lee Soo Man (LSM), founder, former CEO, and father of Noise Music, has been roundly beaten in the game of business by a Private Equity investment firm, Align Partners (AP), who have convinced the current Board of Directors to adopt their 12-point proposal for raising SM Entertainment's (SM) profitability.
Step 1 was dissolving the relationship between SM and LSM's production company Like Planning.
Step 2 saw AP being granted a spot on the new, larger Board of Directors.
And Step 3, which was a step too far apparently, was convincing the current board (including co-CEO Lee Sung Soo, LSM's nephew) further diluting LSM's power as majority shareholder by selling ~9% of SM's shares to Kakao.
The same disclaimers apply to this post. I'm not an expert in finance. I'm not an expert in law. I'm definitely not an expert on Korean law. Once again, I will add my own speculation in bold.
( Part 4: The deal with the devil. Hell! )
And whew. That is all the updates as of 9am MST on February 10th. Again, I will continue to update as we learn more.
Part 5: Let the mudslinging begin. Messy!
The last two days have been bananapants.
Okay, so if you haven't read part 1-3, you absolutely do need to.
All the background you could ever want.
Let's recap very quickly: Lee Soo Man (LSM), founder, former CEO, and father of Noise Music, has been roundly beaten in the game of business by a Private Equity investment firm, Align Partners (AP), who have convinced the current Board of Directors to adopt their 12-point proposal for raising SM Entertainment's (SM) profitability.
Step 1 was dissolving the relationship between SM and LSM's production company Like Planning.
Step 2 saw AP being granted a spot on the new, larger Board of Directors.
And Step 3, which was a step too far apparently, was convincing the current board (including co-CEO Lee Sung Soo, LSM's nephew) further diluting LSM's power as majority shareholder by selling ~9% of SM's shares to Kakao.
The same disclaimers apply to this post. I'm not an expert in finance. I'm not an expert in law. I'm definitely not an expert on Korean law. Once again, I will add my own speculation in bold.
( Part 4: The deal with the devil. Hell! )
And whew. That is all the updates as of 9am MST on February 10th. Again, I will continue to update as we learn more.
Part 5: Let the mudslinging begin. Messy!
