Chinese e-commerce giant Alibaba has bought a minority stake in South Korean entertainment company S.M. Entertainment.
The deal was made public on February 11 and Alibaba now owns a 4% equity stake in the K-pop conglomerate, reports Allkpop.
S.M. Entertainment was founded by South Korean musician Lee Soo-Man. Prominent K-pop artists that have been a part of the company’s roster include TVXQ, BoA, Girls’ Generation, SHINee, EXO and more.
A publicly traded company in South Korea, S.M. Entertainment reached a market capitalization of $1.24 billion in 2012.
This deal should allow S.M. Entertainment to expand further into China through Alibaba Group’s online music distribution platforms and marketing resources.
Back in 2014, there was speculation that Alibaba was going to purchase a stake in S.M. Entertainment for $90 million, but the entertainment company then denied it.