SM Entertainment artists to become SM Entertainment shareholders

[cc9095.livejournal.com]

SM Entertainment, one of Korea’s largest entertainment companies, has recently announced that it would be issuing approximately $881,000 worth of new shares for its artists. As a part of their capital increase through a third party allotment, SM Entertainment artists will become major shareholders of the company, thereby effectively owning a piece of their company.



On March 26th, SM Entertainment announced the plan through DART Financial Supervisory Service, which will provide SM artists Kangta, BoA, TVXQ, Super Junior, Girl’s Generation, SHINee, f(x), Go Ara, and more of approximately $881,000 worth of SM Entertainment stock.

SM Entertainment will issue 22,120 new shares of stock with each individual share valued at 44,550 won (approximately $39 – $40 USD) each.

Kangta, BoA, and most of the Super Junior and Girls’ Generation members will be receiving 680 shares each (value of around $27,200 for each member), while SHINee and f(x) members will be receiving 340 shares each (value of around $13,600 for each member).

SM Entertainment released a statement saying, “This capital increase represents a strengthening partnership between the company and its artists, and we hope that as shareholders, our artists will share and take part in the vision and growth of the company.”

They continued, “We are expecting a global growth of the company through this renewed partnership with the artists.”




Source: Starnews via Nate
Credit: Allkpop
Shared by sharingyoochun.net

Comments

[molly-hime.livejournal.com]

“This capital increase represents a strengthening partnership between the company and its artists, and we hope that as shareholders, our artists will share and take part in the vision and growth of the company.”

idk why but I read that the complete opposite like 'here's some money so don't leave us even though we work you to the bone, give you shitty things and mismanage you."

[cassie-cloud9.livejournal.com]

Yep thats pretty much what I got from this article too.

[sofiasampaio.livejournal.com]

they're not 'receiving' shares right? they are buying them. I mean if there's an increase on capital then yes but do they have these amounts of money [looking at shinee & f(x)]

[herocountry.livejournal.com]

sorry, wait did you ask if they bought these shares w/ their own money? which is no, they were awarded shares of those dollar amounts but they don't get any actual cash unless they sell, unless sme pays out dividends idk

[myiuchan.livejournal.com]

lol i was just reading this on weibo, and ppl there are saying this is the list:

[scubajr.livejournal.com]

Amber's middle name is Josephine?

[yuukihitohira.livejournal.com]

correct me if I'm wrong, but doesn't BoA already own stock in SM?

[4rang.livejournal.com]

Yes, a little over $5 millions' worth. Kangta does as well, about $1 million, I think.

[umbrella-smile.livejournal.com]

I know BoA and Kangta have been shareholders for years. Seems like a smart move, to me.

most of the Super Junior and Girls’ Generation members will be receiving 680 shares each

That rubs me the wrong way. Why not give the same amount to all members?

How much is TVXQ getting, anyone know?

[mycorrhizoid.livejournal.com]

I'm pretty sure all of SNSD are getting the same, according to the list. I'm having trouble remembering all of SJ's real names, but it might just be Kibum who got left out (which is kind of understandable, considering he hasn't been active in years).

Although Henry and Zhou Mi got less . . .

And HoMin get the same as SNSD and Boa and Kangta and SJ.

[rikayla.livejournal.com]

Poor CSJH and Zhang Liyin then.

[asth77.livejournal.com]

lol like that SM has more control over the artists.

Good for both I guess

[scubajr.livejournal.com]

Have other company's ever done this before?

[kazu-kumaguro.livejournal.com]

maybe, and they just didn't announce it.

[falling-empress.livejournal.com]

that's all? god damn they deserve at least a tenth of the revenue they bring in.

[pepper.livejournal.com]

This kind of scares me... free money scares me (if those stocks are actually going to be "given" to the artists (and not bought by them), that is).

[flu-n-c.livejournal.com]

Most of the Super Junior and Girls’ Generation members will be receiving 680 shares each

Pretty much divided up according to popularity? disgusting but then again it's SME

[supplanter.livejournal.com]

It's seniority, isn't it?

[o-o-mai-o-o.livejournal.com]

trying to chain them down forever, i see, SME.

[modernabsurdity.livejournal.com]

Seriously!

You can never escaaaaape.

[meridianslair.livejournal.com]

i would have thought other artists would have gotten more because of popularity.. oh well

[rinn1e.livejournal.com]

if anyone of them decided to sell their shares. Doesn't that give SME a reason to potentially monitor that one person to see what's up?

[caribgirl98.livejournal.com]

Yep. If they sell..it is public. So SME will know what each is doing with their share....they all of a sudden selling...they would know

[lexissexist.livejournal.com]

If they're really issuing new stock for this, I bet it's like, class ZZ shares with ~10 million vesting provisions/clauses. Also, likely deducted from income just to drive the point home.

[herocountry.livejournal.com]

clearly none of these comments understand how stocks work

[dislike.livejournal.com]

thats kind of rude

[rinn1e.livejournal.com]

Less than 1% of stock don't get you much negotiation. But if they form a Union of Artists under SME, then that would help.

[jaejoong.livejournal.com]

Idk about other fandoms, but my K-SONE friends are pissed about this.

SM didn't give these stocks to their artists as gifts, they made the artists purchase them. The whole deal is so dodgy because no company should be able to make their artists buy stocks.

And the whole "represents a strengthening partnership between the company and its artists" is pretty much pure bullshit.

These are new stocks that SM is issuing to the open market. Normally, when a company issues new stocks, it lessens the value of the existing stocks, which then lowers the stock prices. SM is trying to circumvent that by selling these new stocks directly to the artists at current market value.

Basically they are ripping off their own artists in order to turn profit. In reality, these artists should be getting to purchase these stocks at a much lower value.

[waterpulse.livejournal.com]

I'm kind of overwhelmed by the combination of your comment + username + icon. Three for three, bravo, stranger.

[spread.livejournal.com]

U betta werq Bank of Asia!!

[waterpulse.livejournal.com]

Seems pretty fishy to me.

[angelynn-virus.livejournal.com]

mte
(http://pics.livejournal.com/angelynn_virus/pic/000pes5b/)

[lydzi.livejournal.com]

[shiz-lestat.livejournal.com]

LOL A+

[montchi92.livejournal.com]

Congrats to SM artist, this is actually a good thing.

[the-erotomanic.livejournal.com]

i think i need a better article and a better translator to better understand this.

[angelynn-virus.livejournal.com]

SM, I really want to know what the actually fuck you hide behind the bush...
I'm really curiiouuuusss, yeeeeah~

[rewindnext.livejournal.com]

wow @ your fab icon

[raviolikenshin.livejournal.com]

lol you some of you guys are so fucking paranoid

[lydzi.livejournal.com]

Mad-eye Moody was my sensei.