Kakao once again the majority owner of Edam Entertainment - Lee Jieun lost control of her company

    This report was from end of 2021


    https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20220407000721 (in korean)

    (주)카카오엔터테인먼트 Kakao Entertainment
    		 40,000 40 최대주주Majority Owner
    이지은 Lee Jieun
    		 30,000 30
    배종한 Bae Jonghan, Lee Jieun's Manager
    		 30,000 30 대표이사 CEO
    합계 Total
    		 100,000 100


    But on April 29, 2022, the majority owner was changed to Kakao Entertainment


    이담엔터테인먼트/최대주주등의주식보유변동/2022.04.29


    동일인
    및
    동일인
    관련자    		 (주)카카오엔터테인먼트 Kakao
    		 계열회사 2022.04.29 보통주 40,000 40.00 12,500 12.50 52,500 52.50 13,000,000 1,040
    배종한 Bae Jonghan
    		 계열회사(임원) 2022.04.29 보통주 30,000 30.00 -5,000 -5.00 25,000 25.00 5,200,000 1,040
    자기주식 - - - - - - - - - -
    소계(A) 2022.04.29 보통주 70,000 70.00 7,500 7.50 77,500 77.50 - -
    우선주 - - - - - -
    합 계 70,000 70.00 7,500 7.50 77,500 77.50
    동일인측이
    아닌
    최다
    출자자    		 소계(B) - 보통주 - - - - - - - -
    우선주 - - - - - -
    합 계 - - - - - -
    기타 소계(C) Other (undisclosed)
    		 2022.04.29 보통주 30,000 30.00 -7,500 -7.50 22,500 22.50 7,800,000 1,040
    우선주 - - - - - -
    합 계 30,000 30.00 -7,500 -7.50 22,500 22.50
    전체 합계
    (A+B+C)    		 - 보통주 100,000 100.00 - - 100,000 100.00 - -
    우선주 - - - - - -
    합 계 100,000 100.00 - - 100,000 100.00



    In short, before April 29,


    Kakao owned 40% of Edam, while Lee Jieun owned 30% and Bae Jonghan, her proxy, owned the other 30%,


    But now


    Kakao owns 52.5% of Edam, BaeJonghan 25%, and 22.5% unknown (probably Lee Jieun).


    The singer who went to Cannes now owns 47.5% of Edam, while Kakao owns 52.5% now, so she is no longer the owner of Edam, effective or not.


    I don't know what prompted Kakao to seize enough stocks from IU and her proxy to re-claim the ownership of the company. It is rumored that people who had a stake under Kakao would be allowed to buy Kakao Entertainment stocks, which will be made public later this year, at a lower price so it is rumored that Lee Jieun, whose ties with Kakao is quite strong, would stand to make at least $100 million at the IPO of Kakao entertainment. That is also the probable reason that Yoo Heeyeol and others joined Kakao to get preferential deal on the IPOs.


    So it is possible that the ex-owner of Edam Entertainment swapped 7.5% of Edam stock to Kakao's stock, and her proxy also did a swap and made some money for himself.


    Still, that makes IU no longer the owner of Edam Entertainment, and she would be back to the mercy of Kakao now.

  • WhyKnock

    Changed the title of the thread from “Kakao once again the majority owner of Edam Entertainment - Lee JIeun lost control of her company” to “Kakao once again the majority owner of Edam Entertainment - Lee Jieun lost control of her company”.
  • AllKill VIP
  • AllKill VIP

    hopefully you are right with that selling stocks of EDAM to then acquire Kakao stock

    because if she would just sold part of her stock and then do nothing

    then will probably need to pay lots of taxes

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    Quote from motorp77

    Sometimes I really think those companies do this for fun, or just for the sake of doing something. They already have so much power it won't change anything probably

    Yes, just to show that they have an absolute power over their company . Although Kakao doesn't interefere with the management of Starship, it did do so with PlayM, APink's company, now named IST. It kicked out the founder of Acube (the guy who created APink) , and merged it with some other Kakao entity.


    That's why Weeekly, which originally began as trainees for Fave (Loen/Edam), eventually ended up under Apink's company.

    Quote from WhyKnock

    Yes, just to show that they have an absolute power over their company . Although Kakao doesn't interefere with the management of Starship, it did do so with PlayM, APink's company, now named IST. It kicked out the founder of Acube (the guy who created APink) , and merged it with some other Kakao entity.


    That's why Weeekly, which originally began as trainees for Fave (Loen/Edam), eventually ended up under Apink's company.

    True, though if I recall correctly the Acube --> PlayM transformation was actually good, as they had more success after I believe

    Quote from WhyKnock

    Yes, just to show that they have an absolute power over their company . Although Kakao doesn't interefere with the management of Starship, it did do so with PlayM, APink's company, now named IST. It kicked out the founder of Acube (the guy who created APink) , and merged it with some other Kakao entity.


    That's why Weeekly, which originally began as trainees for Fave (Loen/Edam), eventually ended up under Apink's company.


    I love your posts for this reason.


    So many folks seem to live under some weird alt universe where subsidiary labels are somehow independent of their owners. How many times have we heard someone claim that Hybe has no control over Source or Pledis or Ador? Or that Kakao has no control over Starshit? They may CHOOSE to let those subsidiaries move independently but the parent companies ultimately have the final say. What business owner in their right mind would ever spend millions or even billions to buy out another company and give up total control of their new purchase? :pepe-notes:

    Quote from BlackpinkHouse

    I love your posts for this reason.


    So many folks seem to live under some weird alt universe where subsidiary labels are somehow independent of their owners. How many times have we heard someone claim that Hybe has no control over Source or Pledis or Ador? Or that Kakao has no control over Starshit? They may CHOOSE to let those subsidiaries move independently but the parent companies ultimately have the final say. What business owner in their right mind would ever spend millions or even billions to buy out another company and give up total control of their new purchase? :pepe-notes:

    Yes, even in Edam, where the singer had a majority control, the parent company was able to wrest it.


    Source, Ador, etc are just different departments of Hybe and none of them can say no to Mr. Bang.

    I agree, she most probably would have swapped to increase her stakes in Kakao M, pending the IPO.


    And she loses nothing much, owner or not, nobody is going to dicker with her creative independence, not when whatever she touches is gold.

    Quote from bbgc

    I agree, she most probably would have swapped to increase her stakes in Kakao M, pending the IPO.


    And she loses nothing much, owner or not, nobody is going to dicker with her creative independence, not when whatever she touches is gold.

    this. IU is an artist who's proven she can make smart career decisions and I don't foresee companies wanting to mess with that. Also, although being in charge of your own company has many perks, it's also a huge burden for a singer to handle

    🍒 Chee~eer~ish 🍒

    giphy.gif

    Quote from bbgc

    agree, she most probably would have swapped to increase her stakes in Kakao M, pending the IPO.


    And she loses nothing much, owner or not, nobody is going to dicker with her creative independence, not when whatever she touches is gold.

    Yoo Heeyeol jumped into Kakao just to profit from it. People with Kakao for a long time, like the owner of Starship or IU, stand to make a big profit.


    I do see it will create a problem in the long term, although not in the immediate future.


    She became sovereign, a new thing for 2nd gen singers, and now she has lost her sovereignity for a short term gain.

    Quote from WhyKnock

    Yoo Heeyeol jumped into Kakao just to profit from it. People with Kakao for a long time, like the owner of Starship or IU, stand to make a big profit.


    I do see it will create a problem in the long term, although not in the immediate future.


    She became sovereign, a new thing for 2nd gen singers, and now she has lost her sovereignity for a short term gain.

    Well we don't know other aspects of her contract.

    She might still retain autonomy.


    Only future will tell.

    Quote from jimeous

    Well it was originally KAKAO M's Company to manage IU, so it might be a huge problem if IU or her manager is starting to sell their shares :P

    Well that was the intention when Lee Jieun had gained the control of Edam; she was to be her own boss, and Kakao managed to wrest control from her


    That might not be a problem now but will probably be a problem down the road.

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