I honestly don't know what to think about this merge... I am confused.
First of all I don't get why Starship is selling the company. Remember they talked with SM a few months ago? and now they are pretty much closing the deal with LOEN? then why they created a Sub label 'Starship X'? What about Mad Clown?
I have no idea WHY they are selling when they are one of the companies with most profit on the industry!!
On the other hand, it is good that Starship artists can be part of a bigger company which holds more opportunities for them, both in Korea as overseas but I am still a little afraid that our boys would be left out and I will miss the Starship Planet Christmas Songs...
So, here is my wish: A new LOEN sub-label. You know Loen has already two sub labels?? Loen tree and colaboradadi ?? So what about a new sub label where ALL of Starship employees (producers, choreographers, artist, etc) can work happily and keep being successful??
I don't know... someone who knows about the music industry can explain me what is going on?
First: The talk with SM is pretty much just journalist's baseless rumour
Second: This is not a "merge", this is a "take over". The difference between them is that "merge" is often happens with 2 companies of the same size, which is clearly not true in this case. And both company lose its brand name and create a new brand together (Woollim Ent and SM C&C is one example, they create a new brand: Woolim Label).
In this case, Loen clearly claim ownership of Starship, both the brand name "Starship" and "Loen" will not cease to exist, but "Starship" will become a sub-brand under "Loen" brand (just like how Diet Coke is a sub-brand under Coca Cola brand), and similarly, Starship will become a sub-label of Loen. Of course, the sub-label Starship X will follow Starship to Loen as well, it'll be a sub-label of a sub-label (not so weird if you know how many layers of sub-label Microsoft has)
Third: no Starship are not one of companies with most profit in the industry, they are one of the companies with most PROFIT RATIO. These two concept is very different. Profit is how many more money you obtain, profit ratio is how many more money you obtain IN RELATION to the capital you spent.
For example, Company X invests $100 millions, and they get $105 millions, the profit is $5 million, and the profit ratio is 5%. And then we have company Y which spents $100,000, and gets $200,000; the profit is $100,000, but the profit ratio is 100%!!
You can see that company Y have much higher profit ratio but the profit is still so much smaller than company X with profit ratio of 5%.
Generally, in business industry, mega-sized companies tend to have small profit ratio. Small but successful companies get much higher profit ratio.
Fourth: The company I work part-time for also experience a take over several year ago, And till this day they still complain about "not comprehend that company's employee's way of working". This has me worry because the two companies may not agree about how to operate and hinder our beloved artists T^T
Fifth: The president of Starship may likely still be Kim Si Dae, he is just not owning the company anymore, but he still leads the company and has every says about how to promotes the artists. The only difference now is that Starship will have access to Loen's immense fund and connections in the industry, and in return, they share a bit of their profit with Loen... And yes, employees's disagreement
P/S: If you're still confused just ask. I'm not English native speaker and my explanation may be a little bit hard fo understand if you're not studying finance