It was rumored that SM Entertainment received an investment from China’s Alibaba worth 100 billion Krw (90 million USd) from the e- commerce giant but was denied by the SM Entertainment.
From the financial supervisor of SM Entertainment stated that “The report about [SM Entertainment] receiving investment from Alibaba is false… Although we are in talks regarding various businesses, alliances, and other forms of cooperation to diversify our operations in China, the news about investment from Alibaba is false.”
The rumors that spread earlier that Alibaba was looking to be the # 2 shareholder of SM Entertainment by investing 100 billion KRW into the agency. With this great news, the SM’s stocks raised by 15% but with this recent denial it gradually went off .
Eventhough the rumors were false, it is just a matter of time before a large- scale investment from a Chinese company will be announced as they- the SM Entertainment have revealed that they are in various negotiations with Chinese companies