This photo provided by SM Entertainment shows an exterior view of the company’s headquarters in Seoul. (Image courtesy of Yonhap)
SEOUL, May 29 (Korea Bizwire) — SM Entertainment will expand its strategic partnership with Tencent Music Entertainment Group, following the Chinese streaming giant’s move to become SM’s second-largest shareholder.
SM announced Thursday it signed a memorandum of understanding with Tencent Music to broaden cooperation beyond music distribution.
The partnership will include the co-production of new idol groups, expansion of intellectual property (IP) businesses and local performance planning in China.
Tencent Music, a subsidiary of Chinese tech giant Tencent Holdings, is set to acquire a 9.38 percent stake in SM from rival K-pop agency Hybe on Friday. The purchase would make it SM’s No. 2 shareholder behind Kakao Corp. and Kakao Entertainment, which together hold a 41.5 percent stake.
“This collaboration significantly expands the scope of cooperation,” SM said, adding that the partnership marks the official start of closer ties following the stake acquisition.
As part of the agreement, SM and Tencent Music plan to debut a Chinese idol group within two to three years. SM will oversee production, including casting and training, while Tencent Music will manage local promotion and music distribution.
The companies also aim to develop joint IP businesses in China, including photo cards, merchandise, pop-up stores and video content, and expand collaborations over SM artists’ concerts in China, such as next year’s SMTown Live in Hong Kong. They will also boost fan engagement through live-streaming platforms, including Beyond Live.
SM said it expects the alliance to create “explosive synergy” in the Asian market, combining its content production expertise with Tencent Music’s vast user base and distribution reach.
“This strategic partnership will be a major milestone in enhancing SM’s global influence and strengthening its position in the Chinese market,” the company said.
(Yonhap)
