**Netmarble looking good and eating rice cake… Hybe vs. Kakao, facial expression management before taking over SM Entertainment**
The battle for the takeover of SM Entertainment (hereinafter referred to as SM) is intensifying. Controversy is growing over the management rights of SM, with the appearance of a revealing war between the current executives of SM and Kakao’s coalition and Hybe’s and former producer Lee Soo-man’s coalition. The burden on both sides of the takeover battle is increasing, but there are companies that are trying to manage their expression. It is Netmarble. Netmarble, which maintains a collaboration system with various companies to expand the entertainment business, seems to have won the ‘flower party’ in the SM takeover battle.
Netmarble owns an 18.2% stake in Hybe as of the third quarter of last year. He is the second largest shareholder after Chairman Bang Si-hyuk, the largest shareholder of Hybe.
Netmarble’s Hybe stake shopping took place in April 2018. It invested 201.4 billion won even before listing on Hybe to secure a stake early on. Since then, Netmarble has worked hard to diversify content by showing the connection between the entertainment business and games, such as introducing a mobile game ‘BTS World’ and releasing new works based on BTS’ IP. A close cooperative relationship continues, with BTS being selected as a model for Coway, a subsidiary of the Netmarble Group.
Netmarble has been steadily expanding its entertainment business since purchasing Hybe shares. Last year, Netmarble F&C, a subsidiary specializing in visual special effects (VFX), bought 169,340 shares of Ace Factory, an entertainment agency, for about 39,782.83 million won. It owns 51% of stock in Ace Factory and has risen to the largest shareholder by securing a majority stake. It is the direct management of the entertainment business.
From the standpoint of Netmarble, which aims to converge the game and entertainment businesses, synergies are expected if Hybe acquires SM. There is an expectation that the cooperation between Netmarble and Hybe, which have been mutual friends, can also be achieved through SM.
There is also a part where Netmarble can join forces in the metabus business, which is particularly focused. SM is also stepping on the pedal to implement the metaverse using its celebrities. It seems that Netmarble will also find a way to utilize Studio Gwangya, as it has worked hard to prepare infrastructure to expand sales of secondary copyrights such as metabus business and goods through Studio Gwangya, which was established in July of last year.
Even if Kakao Entertainment, which has established a competitive structure with Hybe, embraces SM Entertainment, there is nothing bad for Netmarble. Netmarble and Kakao Entertainment officially debuted virtual idol ‘Maybe’ on the 25th of last month.
With the acquisition of Ace Factory, Netmarble is even considering appearing in a digital human drama. To this end, we are working hard on appearing digital humans on various platforms to increase the IP power of digital humans.
Kakao Enter is also contributing to Netmarble’s plan. Kakao Enter is actively utilizing affiliate platforms, such as publishing webtoons related to ‘Maybe’ simultaneously on Kakao Page and Kakao Webtoon.
Netmarble’s highly anticipated work this year, ‘Level Up Alone: â??â??Arise’ is also based on Kakao Enter’s representative IP webtoon, ‘Level Up Alone’, and they are continuing mutual cooperation in various fields.
Even in the tangled investment relationship, it seems that Netmarble will be able to secure substantial profits regardless of who wins the management dispute over SM Entertainment. From the perspective of Netmarble, which is focusing on the entertainment business using the metabus as a result of a rebound in performance, there is an expectation that even if either Kakao Enter or Hybe acquires it, it will be able to widen its stride by using the existing business cooperation system.
An official from the game industry said, “Just as Smilegate’s ‘Epic Seven’ collaborated with the girl group Espa, domestic game companies are actively collaborating with entertainment companies recently.” If you can use it, there will be nothing to lose.”
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