SEOUL — K-pop juggernaut HYBE has withdrawn its bid to control rival agency SM Entertainment and has instead decided to collaborate with SM as well as rival bidder Kakao, marking a sudden détente. Announced early Sunday, the resolution paves the way for K-pop agencies to not only bury the hatchet but also continue their push to monetize fandom with idol-related online content.
“Proceeding with a higher tender offer [to beat Kakao’s bid] may have in turn caused a negative impact on our shareholders and we also judged it may have further overheated the market,” HYBE said in a statement. The agency of boy band BTS had secured about 15% of SM, a former market leader, mostly by acquiring shares from SM founder, who was recently pushed out from the agency.
SM, which has played a key role in K-pop’s popularity and overseas expansion, has resisted HYBE’s acquisition, slamming it as “anticompetitive.” The two agencies in recent years have dominated the charts, together accounting for nearly half of all albums sold in 2022, according to Korean chart company Circle Chart.
In a drive for reform, SM’s management in February said it would issue new shares to be sold to Kakao as part of a wide-ranging partnership. Lee, then-the biggest shareholder, protested but management overrode him. Lee then offloaded most of his shares to HYBE, which in turn tried to up its stake with a tender offer. Lee successfully challenged the Kakao deal in court, prompting the latter to issue a higher counteroffer.
sm stans forgetting kakoa is biggest share holder now and sm is under kakoa now and dear u shares gone to hybe with huge profit ,, dearu is the only thing hybe now
idk what SM even is but cool I guess
THANK GOD! 🙏🏻 SM is safe!
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HYBE and Kakao settle to stop competing over acquiring SM Entertainment | allkpopIt was reported Kakao and HYBE have settled to stop the chicken game over the acquisition of SM Entertainment. According to the financial … Hybe wanting to buy SM for exo to officially be the father of BTS I think the best option is just to leave SM alone, best for all three companies
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