JYP Entertainment and SM Entertainment are working together to make Dear U's platform, "Bubble," a global mobile platform.
Keep on reading to know more.
JYP Entertainment Acquires 23.3 Percent Stake in SM Entertainment's Subsidiary Dear U
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.
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Dear U's core business, "Dear U Bubble," is a service platform for exchanging special messages between a fan and artist in a form of a one-on-one chat. The platform was launched in 2020, with the proportion of its global users reaching 68 percent. With this, the global users are the platform's main customers. In addition, "Dear U Bubble" is currently providing services with more than 150 artists from 13 different companies, including SM Entertainment and JYP Entertainment.
On June 4 KST, JYP Entertainment announced that it had acquired a 23.3 percent stake in Dear U, and started to expand its platform and business influence. Dear U achieved a total sales of 8.9 billion won (around $8 million USD) and an operating profit of 3.2 billion won (around $2.9 million USD) in the first quarter alone.
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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.
Previously, SM Entertainment and JYP Entertainment established "Beyond LIVE Corporation," a joint-venture company that operates and expands the "Beyond LIVE" platform, a platform that focuses on online live concert streaming services and concert series, in August last year.
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Dear U To Go Public in the Market by Second Half of 2021
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.
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.
Dear U is currently undergoing due diligence to be able to apply for a preliminary examination for a listing at the Korean Exchange.
READ MORE: SM Entertainment's Subsidiary 'Dear U' to Go Public on KOSDAQ in the Second Half of 2021
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Written by Robyn Joan
