This article was published on July 24, 2025, at 11:17 a.m. on the ChosunBiz MoneyMove site.
The acquisition of Dreamus Company, the music content subsidiary of SK Square, turned into a four-way competition. Four candidates have been selected as preferred negotiation partners: YG PLUS (a subsidiary of YG Entertainment), Busan Equity Partners, Be My Friends, and Daemyung GEC & JC Partners. SK Square plans to receive binding offers after assessing their intentions and sincerity regarding the acquisition.
The financial capabilities of the four candidates, as well as their willingness to acquire equity from the second largest shareholder, Shinhan Venture Investment, are expected to be variables that determine the direction of management control.
According to investment banking (IB) industry sources on the 24th, SK Square has recently selected four candidates, including YG PLUS, as the preferred negotiation partners for the acquisition of Dreamus Company and has notified each company. It is reported that SK Square needed to finalize the selection of the preferred negotiation partner by the third week of July due to internal timelines. An industry source noted, "However, it seems to be more akin to a 'pre-bid' rather than a typical concept of a preferred partner."
Alongside this, SK Square has recently appointed Samil as the sales advisor for the transaction. Samil is reportedly in the process of verifying the sincerity of the candidates' intentions to acquire among the four companies. Some candidates may voluntarily withdraw during this process.
Busan EP has a history of previous M&A transactions with SK Square. In May, it acquired the corporate driving service company "Good Service" from SK Square's subsidiary T Map Mobility. Additionally, it is believed that Busan EP is discussing plans to acquire airport limousines from T Map Mobility. While the Seoul airport limousine was recently sold to STIC Investments, the airport limousine is still seeking a new owner.
YG PLUS is noted as the most watched candidate for post-acquisition in the market. As of the end of the first quarter, its current assets were at the level of 140 billion won. Last year, its annual revenue was 180 billion won. Be My Friends has stood out by showing a strong intention to acquire over an extended period compared to the other three candidates. The company is co-led by Lee Gi-young, a former representative of Dreamus Company.
Once the 'sincere' candidates are selected, a due diligence process will be conducted, followed by a binding offer and then the signing of the stock purchase agreement (SPA). It is said that finalizing the SPA will take at least more than a month.
Industry sources view whether these four candidates will only purchase 38.67% equity of SK Square or also the 23.49% equity of the second largest shareholder, Shinhan Venture Investment, as a key issue. Shinhan Venture Investment is reported to have a tag-along right for SK Square. This means they have the right to request that their shares be sold when SK Square sells its equity.
An IB industry source stated, "It is still undecided whether the candidates selected as preferred negotiation partners will purchase the equity of the second largest shareholder," adding, "Since Shinhan Venture Investment wants a concurrent sale, this aspect is expected to influence the selection of the acquirer."
Currently, the market capitalization of Dreamus Company is approximately 140 billion won. If only the equity of SK Square is sold, applying a 100% management premium, the estimated sale price would be about 100 billion won.