South Korea’s biggest K-pop entertainment firm on Tuesday denied a report that it was the target of a major investment deal worth at least $90 million from Chinese e-commerce giant Alibaba.

“We are discussing potential partnerships with many companies in order to diversify our businesses in China,” SM Entertainment said in a regulatory filing.

“But the report on the investment deal with Alibaba is not true,” the company added.

The Korea Economic Daily had cited unnamed industry sources saying Alibaba was conducting due diligence on the Seoul-based entertainment group with a view to a 100 billion won ($90 million) investment.

The report also said the two firms were considering setting up a joint venture in China.

Listed on Seoul’s junior KOSDAQ market, SM is valued at around 788.7 billion won. Former singer and founder Lee Soo-Man holds the largest stake of 21.3 percent.

The SM K-pop stable includes some of the industry’s biggest acts, including boy bands EXO and Super Junior, and the girl band Girls’ Generation.

The company, founded in 1995, is considered a pioneer of the K-pop wave that has swept Asia over the past decade with its blend of youthful good looks and slick production.

In August, French luxury behemoth LVMH announced a $60 million investment in another K-pop giant, YG Entertainment, which includes “Gangnam Style” singer Psy on its roster. (AFP)