When SM Entertainment announced their merger with Woollim last month, CEO Lee Soo Man, said it was only the company's first step towards becoming Asia's most powerful music company.

Over the past week or so, there has been speculation about which company would be the next to join the SM brand.

According to Sports Seoul, a rep from SM C&C said, "As we have started a label business, we will be pursuing more label-joinings with various companies."

Without giving too many details the rep also mentioned, "There is a possibility open with various companies. Through this project, we look forward to an effect of simultaneous growth between SM Entertainment and various labels."

Other reports have cited industry insiders who suggest some of the next groups to move into SM Town will be J.Tune Camp, Starship Entertainment, and WM Entertainment.

It is likely that while talks with these companies are currently in the preliminary stages, it is likely that no official negotiations will start until after the mid-level agencies see how SM fares with their newly acquired groups INFINITE, Nell and Tasty.

Meanwhile SM has taken on a rather unconventional business partner - a wig company.

On September 4 it was revealed that the South Korean agency has bought shares in Hair Couture, a high-end wig company that created and supplied the official Girls' Generation hair accessories earlier this summer.

Sports World reported that a business team rep for SM explained the wig company investment fits into their "blue ocean strategy."

This plan involves creating consumer value in an uncontested market - meaning that SM is targeting fans who want to actually look like the Girls' Generation members rather than just use the same products as them.