SM Entertainment (SM) announced on the 21st that it held a board meeting and decided to additionally acquire an 11.4% equity stake in the fan communication platform corporation DearU, incorporating it as a consolidated subsidiary.
DearU is a corporation that operates a 1:1 private messaging service called "Bubble" for artists and fans. As of the end of the third quarter of 2024, it has secured 2 million paying subscribers.
Recently, Kakao has plans to launch its fandom platform "Belift" through its subsidiary Kakao Entertainment as early as the first half of this year.
As a subsidiary of Kakao, SM is expected to seek collaboration with Kakao Entertainment on future platforms. It remains to be seen whether it can become a rival to HYBE’s market-leading “Weverse.”
SM has strengthened its management control over DearU by acquiring an additional 11.4% equity stake, in addition to the 33.7% equity already held by its subsidiaries (SM Studios, SM Japan, and Everysing Japan).
The decision is part of SM’s ongoing “SM 3.0″ strategy and is intended to enhance the fan platform as a key business for expanding intellectual property (IP) business.
JYP Entertainment (JYP Ent.) plans to continue its existing business cooperation with DearU as a major shareholder, retaining a 10% equity stake even after this change in equity. The company expects that synergy among SM, DearU, and JYP will continue to be generated.
Jang Cheol-hyeok, co-CEO of SM, stated, “We will maximize the business synergy with DearU to further enhance our competitiveness as a global fan communication platform.”
A Kakao Entertainment official said, “The fan platform that Kakao is preparing is a different service than Bubble, and it will take a form that can produce mutual synergy with DearU,” adding, “The two companies plan to closely collaborate in the future.”