SM + JYP COLLABORATION
SM Entertainment is strengthening its partnership with JYP Entertainment, who has acquired a 23.3 percent stake in the entertainment company’s subsidiary, Dear U, which is owned by SM Studios, by growing Dear U’s “Dear U Bubble” platform into a competitive mobile platform in the global market through the two companies’ synergy and global networks. According to a new statement from both companies, JYP Entertainment has now acquired a stake in SM Entertainment‘s subsidiary service, DEAR U.
DEAR U is a mobile application development and IT operations company under SM Entertainment’s new subsidiary, SM Studios—which also houses Mystic Story, SM C&C, and more. According to reports made on May 27, Dear U will be listed in the Korean Securities Dealers Automated Quotations (KOSDAQ) market as early as the second half of 2021.
JYP Entertainment has acquired a 23.3 percent stake in the company DearU, which is owned by SM Entertainment’s subsidiary, SM Studios. With this investment, SM intends to strengthen cooperative ties with JYP in the synergistic development of “DearU bubble,” a mobile platform that is competitive in global markets. One of DEAR U’s first offerings was the LYSN fanclub app for SM Entertainment artists, but LYSN wasn’t initially received as well as intended. In fact, the application was soon dubbed “one of SM Entertainment’s biggest money-draining affiliates.”
DearU Bubble, which is the key service offered by the company DearU, is a fan service platform in which fans can exchange one-on-one private messages with their artists. It was launched in 2020 and about 68 percent of its users come from outside of Korea. More than 150 artists in total from 13 agencies, including SM and JYP, are on the service.
Dear U also recorded good profit this year and is expected to grow further as the artist lineup increases in the future, such as JYP Entertainment artists. The company’s artists such as 2PM, DAY6, TWICE, Stray Kids, and ITZY have also joined “Dear U Bubble” since 2020, and are actively communicating with both domestic and international fans.
Now, JYP Entertainment is biting off a bigger slice of the DEAR U pie. The Financial Supervisory Service reports that JYP Entertainment has become the owner of a 23.3% share of DEAR U. JYP Entertainment bought 9.1% of the shares last month, purchasing the remaining 14.2% this week.
SM and JYP recently partnered up in the establishment of Beyond LIVE Corporation, which specializes in the online concert platform Beyond LIVE.
Dear U had an amazing impact on the improvement in earnings of SM Entertainment during the first quarter of last year. SM Entertainment saw a deficit in its earnings, but with Dear U alone, the company began to see growth.
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