Kakao Ent to sell Starship shares to fundraise AI research

people in the comments already expecting it or thinking it's gonna happen.

do yall think HYBE gonna do it???

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I can totally see IVE being a HYBE group lol...especially Wonyoung being a HYBE idol makes so much sense.

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Holy hell...100 billion won? That is like $80 million. And we dont know how much of Starshit Kakao owns or whether this sale represents Kakao's entire stake in Starshit. If Kakao still retains control of Starshit even after this huge sale, that means that the actual value of all of Starshit is over $160 million and that's assuming Kakao owns 100 percent of Starshit. It would be even higher if Starshit has minority owners and if Kakao still wanted to retain a controlling interest.

I think it's gonna happen

I thought Hybe decided to concentrate on expanding their US footprint instead of further expanding in Korea?

Fuck, i would be over the moon with happiness if it was Hybe that was buying these shares of Starshit.

Y'all know why right?

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BangPd has been strongly rumored to be a huge fan of Izone. Part of why he even created LSRFM was to get three of the most popular Izone girls among J Wizones together.

Imagine him seeing an opportunity to shake the foundations of Kpop by buying a controlling stake in Starshit.

So many Ive vs New Jeans fanwars going on, they are literally the two biggest acts in Korea right now. And him buying out his competition would just be an EPIC move.

Most importantly, this would make the above picture a REALITY instead of a pipe dream among the 9 Wizones still left, we would all literally cry with happiness .

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wjsn will disband before that happens, oh wait they ..

Well anyways, bow that Kakao has SM, they are kicking out Starship, but I don't see it happening, rumors are just stan twitter.

anyways KAKAO is not selling fully, only a portion, they have 60%, they still want to own most of it. just less of it now

Quote from BlackpinkHouse

Holy hell...100 billion won? That is like $80 million. And we dont know how much of Starshit Kakao owns or whether this sale represents Kakao's entire stake in Starshit. If Kakao still retains control of Starshit even after this huge sale, that means that the actual value of all of Starshit is over $160 million and that's assuming Kakao owns 100 percent of Starshit. It would be even higher if Starshit has minority owners and if Kakao still wanted to retain a controlling interest.

I believe we know. A month or so ago, it was reported that Kakao would sell partly of its stake in Starship so its shares would decreased from 70% to 51%. This new news suggests Kakao is selling all 70%

You can't say just 70% of Starship is already worth 100b as whoever gets this much shares will totally control Starship.

Quote from Jarambo

wjsn will disband before that happens, oh wait they ..

Well anyways, bow that Kakao has SM, they are kicking out Starship, but I don't see it happening, rumors are just stan twitter.

anyways KAKAO is not selling fully, only a portion, they have 60%, they still want to own most of it. just less of it now

100 billion won is a huge amount though. If you're saying that selling that much of their stake in Starshit would still result in them having majority ownership of Starshit (going from 60 percent to no less than 50.1 percent)...that would mean that Starshit as a company is worth at least 1 trillion won... $800 MILLION USD. That is approaching the market cap of YGE iirc. I find it very hard to believe .

If selling 100 billion won brings their stake down from 60 percent to say 30 percent, that's a lot more believable. But they would lose their controlling interest and would become one of presumably several minority shareholders in the company. Not sure what happens in a private company where no singular entity is the majority shareholder...

fk no.

Ive is a 100% sajaegi mirage. No wonder Kakao are trying to sell it.

btw Hybe just recently paid $115 million USD to own 100% of ENHYPEN's company, so $80 million USD is a lot but it isn't a lot.

[delete rant]

Quote from bzzz

I believe we know. A month or so ago, it was reported that Kakao would sell partly of its stake in Starship so its shares would decreased from 70% to 51%. This new news suggests Kakao is selling all 70%

You can't say just 70% of Starship is already worth 100b as whoever gets this much shares will totally control Starship.

Hmm...

If 100 billion won represents Kakao's entire stake in Starshit...and if that stake is supposed to represent 70 percent of Starshit...then simple math would tell us that Starshit is worth about 140 billion won... about $110 million. That's a crapload of money for a company that is entirely dependent on one group at this point.

I've read other tweets saying that the 100 billion won sale by Kakao doesnt will only reduce its stake in Starshit not completely eliminate it, which means Starshit is worth more than $110 million.

Quote from BlackpinkHouse

100 billion won is a huge amount though. If you're saying that selling that much of their stake in Starshit would still result in them having majority ownership of Starshit (going from 60 percent to no less than 50.1 percent)...that would mean that Starshit as a company is worth at least 1 trillion won... $800 MILLION USD. That is approaching the market cap of YGE iirc. I find it very hard to believe .

If selling 100 billion won brings their stake down from 60 percent to say 30 percent, that's a lot more believable. But they would lose their controlling interest and would become one of presumably several minority shareholders in the company. Not sure what happens in a private company where no singular entity is the majority shareholder...

Kakao is selling 30% and retain 29.xx%

Quote from BlackpinkHouse

Hmm...

If 100 billion won represents Kakao's entire stake in Starshit...and if that stake is supposed to represent 70 percent of Starshit...then simple math would tell us that Starshit is worth about 140 billion won... about $110 million. That's a crapload of money for a company that is entirely dependent on one group at this point.

I've read other tweets saying that the 100 billion won sale by Kakao doesnt will only reduce its stake in Starshit not completely eliminate it, which means Starshit is worth more than $110 million.

I saw via another (more detailed) translation that Kakao currently owns 59.73%

Don't forget that Starship also owns Kingkong, a leading acting agency.

Quote from gerrard174

Kakao is selling 30% and retain 29.xx%

Hmm...that would mean that Starshit is worth over 300 billion won...$250 million USD or so. Basically Ive, Cravity, what's left of MonstaX, and their actor division are worth a quarter of a billion dollars. To me this is a ginormous valuation, given that MX is a group in name only now and Cravity hasnt made much impact.

Ive has the weight of the entire quarter billion company on their poor shoulders , with a little help from their acting division i guess.

I don't think so. I just don't see why. I want to ask "with what money?" since HYBE is already in debt because they've already bought so many other labels, but at the same time, they did get their money back after that attempt to buy SM. But I just can't see for what reason they'd purchase Starship? Other than IVE and ig some Sistar IP what else? They do have an acting division too ig, but why would HYBE need that in particular? I mean, I know HYBE did purchase a bunch of other small labels previously like Pledis but still...

I don't know maybe I'm just too stunned at this turn of events. Kakao was talking all this big talk about IVE being used for Kakao America branch but I guess they are going to use Aespa instead. Still, I am glad to be rid of Starship and to get new management but I worry that if they do go to HYBE their sound and style might change.

Then again I also don't know who else other than HYBE would be interested in purchasing Starship either. Tbh other that IVE I just don't see the value in Starship, but perhaps someone more educated in this field would know better than I.

I think it would be cool

But why? Isn't IVE profitable enough?

Quote from bzzz

I saw via another (more detailed) translation that Kakao currently owns 59.73%

Don't forget that Starship also owns Kingkong, a leading acting agency.

you have 777 akorns (angel number)

With the exception of Wonyoung and Yujin, this is concerning - and knowing Starshit, it wouldn't be surprising if the members also learned of this from the news.

It sorta makes sense tho. Remember that their producer/creative director announced she'd be selling her shares for 200bn ($154M) earlier which almost certainly means she won't be as involved as she's literally no longer invested in the success of the group.

If I were Wonyoung or Yujin, I'd selfishly see the writing on the wall and take this opportunity/excuse to transition full time into acting and ad modelling, which the Korean public is more than ready to embrace.

As for the other members... yeah, this kinda sucks.

i doubt it , they wanted to concentrate on expanding in USA and Latin market

Maybe if they want actor division they could buy shares

I like how no credible source or industry insider actually remotely suggests Hybe will do anything, people just wildly speculate/fantasize and then that's classified as a "rumour".

Not exactly the finest minds of a generation at work here.

As for Starship, their value is probably at quite a high right now. WJSN future is woolly, Monsta X is going fine but has enlistments, Cravity has kind of done ok but also kind of invisible, and IVE are at the top in Korea- so only really can maintain their position at best. So forecasts of long term growth for their market cap would be quite low.

Good time to sell to be honest. Not sure the market value for Starship in 2 years will be what it is now.

Quote from oneinamiyeon

With the exception of Wonyoung and Yujin, this is concerning - and knowing Starshit, it wouldn't be surprising if the members also learned of this from the news.

It sorta makes sense tho. Remember that their producer/creative director announced she'd be selling her shares for 200bn ($154M) earlier which almost certainly means she won't be as involved as she's literally no longer invested in the success of the group.

If I were Wonyoung or Yujin, I'd selfishly see the writing on the wall and take this opportunity/excuse to transition full time into acting and ad modelling, which the Korean public is more than ready to embrace.

As for the other members... yeah, this kinda sucks.

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Wut? I remember reading about someone very high up in Kakao (or maybe the wife of a top exec) that wanted to sell shares of Starshit, are you sure you're not mixing this lady with the producer/creative director? I cant imagine a lowly producer/creative director even for a group as big as IVe to have $154 MILLION worth of shares, that's probably half of Starshit's entire valuation lol.

Also, it seems like you're implying that Ive would be disbanded after Kakao sells some or all their shares in Starshit...can you explain why? Ive is literally printing money right now, probably grossing 40 million USD+ every year for the company with no end in sight. They are literally the top act in Korea right now. Why would the current owners and the new owners buying Kakao's shares mess with this gravy train before its even been derailed yet?

I do agree that Yujin and Ive have a clear future if Ive were disbanded. They will be just fine. The other members are in a lot more trouble as you said .

am i missing something about why hybe is brought up? the economist article doesn't specify anything about hybe. and from what i see in the article, their idea of AI is pretty similar with what hybe already done with lee hyun's multi-language release. if anything kakao is creating competition to hybe's AI

not to mention hybe is in the position to sue kakao ent for sm's stock price manipulation? is it allowed to make direct M&A like this?

Quote from BlackpinkHouse

Wut? I remember reading about someone very high up in Kakao (or maybe the wife of a top exec) that wanted to sell shares of Starshit, are you sure you're not mixing this lady with the producer/creative director? I cant imagine a lowly producer/creative director even for a group as big as IVe to have $154 MILLION worth of shares, that's probably half of Starshit's entire valuation lol.

Also, it seems like you're implying that Ive would be disbanded after Kakao sells some or all their shares in Starshit...can you explain why? Ive is literally printing money right now, probably grossing 40 million USD+ every year for the company with no end in sight. They are literally the top act in Korea right now. Why would the current owners and the new owners buying Kakao's shares mess with this gravy train before its even been derailed yet?

I do agree that Yujin and Ive have a clear future if Ive were disbanded. They will be just fine. The other members are in a lot more trouble as you said .

Yup, Seo Hyunjoo, concept master / producer of IVE and also the wife of founder of Starship.

154 million US (200bn won) is what she stands to pocket by selling her shares at the proposed 1 trillion won valuation. That was the real news to me. This is apart from the announced and emphasized (to distract from insider sales?) 100bn in new shares to be sold for "expansion" - only this money from the new shares will be available in Starship's bank account to use.

Thread

Kakao Entertainment is seeking to raise up to 100 billion won through the sale of its stake in its subsidiary, Starship Ent.

twitter.com/ivestarshipnews/status/1677885672596848641?s=46

twitter.com/ivestarshipnews/status/1677886099325329408?s=46

meijwy

Jul 9th 2023

As far as disbandment - I'm just putting myself in Wonyoung and Yujin's shoes - I'd be concerned about:

-Seo Hyunjoo commitment (after selling out)

-Kakao's commitment (after prioritizing generative AI opportunities over Kpop/IVE, if rumors are true)

-Hybe's commitment if they end up buying out IVE (as all the major sublabels having their own incumbent groups); further, would the new mgmt team, whoever they are, be able to grok a path for IVE? Or do they risk finding themselves at Hybe's equivalent of JYP's Division 2.

So, I'm just saying I wouldn't be surprised if Wonyoung or Yujin decide to use this opportunity (especially if there are conditions in their contracts that give them an out in a buyout situation) to capitalize on the *possible* peak of their popularity to branch out on their own.

Kakao is useless so good riddance

I don't think it is hybe, they currently in bad blood with kakao. Who knows it might be rbw instead? They are acquiring labels too like crazy, so why nobody suspecting it would be them? They need Ive more than Hybe.

Quote from Ves

tokki-swag is trying to spread a rumor they found on Twitter.

...but twitter kpop users are stupid when it comes to companies' business (and most things honestly)

am saying this as a twitter user

Quote from BlackpinkHouse

Wut? I remember reading about someone very high up in Kakao (or maybe the wife of a top exec) that wanted to sell shares of Starshit, are you sure you're not mixing this lady with the producer/creative director? I cant imagine a lowly producer/creative director even for a group as big as IVe to have $154 MILLION worth of shares, that's probably half of Starshit's entire valuation lol.

Also, it seems like you're implying that Ive would be disbanded after Kakao sells some or all their shares in Starshit...can you explain why? Ive is literally printing money right now, probably grossing 40 million USD+ every year for the company with no end in sight. They are literally the top act in Korea right now. Why would the current owners and the new owners buying Kakao's shares mess with this gravy train before its even been derailed yet?

I do agree that Yujin and Ive have a clear future if Ive were disbanded. They will be just fine. The other members are in a lot more trouble as you said .

If they were grossing $40+ million USD / yr, why would Kakao sell? Kakao are not some small tinpot company. They literally own 100+ other companies. Preferring to invest in those 100+ other companies and $80 million USD on speculative AI technology instead of investing in Ive seems like they have lost faith in Ive, since they would rather invest in 101 other things. Their market cap is $21,000 million. $80 million USD is nothing to them.

Quote from K-PL

If they were grossing $40+ million USD / yr, why would Kakao sell? Kakao are not some small tinpot company. They literally own 100+ other companies. Preferring to invest in those 100+ other companies and $80 million USD on speculative AI technology instead of investing in Ive seems like they have lost faith in Ive, since they would rather invest in 101 other things. Their market cap is $21,000 million. $80 million USD is nothing to them.

lol they sell over 2M albums every year for a gross of 25 million. Then Yujin and Wonyoung's CFs are easily worth 15 million by themselves to the company. They have like 30 endorsement deals between them. Then you add in the millions from streaming and digital sales, merch, appearances, etc. 40 million is actually very conservative. There's a reason why the company is valued in the 9 figures USD and it's not because of K Will, Monsta X or WJSN be for real lol.

Quote from BlackpinkHouse

lol they sell over 2M albums every year for a gross of 25 million. Then Yujin and Wonyoung's CFs are easily worth 15 million by themselves to the company. They have like 30 endorsement deals between them. Then you add in the millions from streaming and digital sales, merch, appearances, etc. 40 million is actually very conservative. There's a reason why the company is valued in the 9 figures USD and it's not because of K Will, Monsta X or WJSN be for real lol.

Come On Man. Their albums are sajaegi, because like who sells 45% of week one albums in days 2-7, and if you think they are getting 1/2 a million for each individual CF, lmao. Like if they were making this much, Kakao is not going to dump them.