HYBE is now the top shareholder of SM Entertainment | ABS-CBN
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HYBE is now the top shareholder of SM Entertainment
South Korean entertainment agency, HYBE, just acquired 14.8 percent stake of SM Entertainment from its founder Lee Soo Man earlier today, February 10. Through this deal with Lee Soo Man, HYBE is now the top shareholder of SM Entertainment.
South Korean entertainment agency, HYBE, just acquired 14.8 percent stake of SM Entertainment from its founder Lee Soo Man earlier today, February 10. Through this deal with Lee Soo Man, HYBE is now the top shareholder of SM Entertainment.
Lee Soo Man was previously the top shareholder of his company with 18.46 percent stake. Reports have noted that HYBE acquired the shares of the founder at 422.8 billion won (approximately $334.3 million).
Lee Soo Man was previously the top shareholder of his company with 18.46 percent stake. Reports have noted that HYBE acquired the shares of the founder at 422.8 billion won (approximately $334.3 million).
This move by the founder of SM Entertainment comes after South Korean company Kakao became the second-largest shareholder of the company last week at 9.05 percent stake. Lee Soo Man revealed that this acquisition by Kakao was illegal—he is seeking to take legal actions for this movement.
This move by the founder of SM Entertainment comes after South Korean company Kakao became the second-largest shareholder of the company last week at 9.05 percent stake. Lee Soo Man revealed that this acquisition by Kakao was illegal—he is seeking to take legal actions for this movement.
“This acquisition represents a major step by HYBE to integrate the global expertise of both companies to become a game changer in the global music industry,” HYBE said in a statement.
“This acquisition represents a major step by HYBE to integrate the global expertise of both companies to become a game changer in the global music industry,” HYBE said in a statement.
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Meanwhile, SM Entertainment has issued a statement of response to the acquisition made by HYBE. The statement shared that everyone in the entertainment agency—including its artists—showed their disapproval of the hostile acquisition.
Meanwhile, SM Entertainment has issued a statement of response to the acquisition made by HYBE. The statement shared that everyone in the entertainment agency—including its artists—showed their disapproval of the hostile acquisition.
“Back on February 3, SM Entertainment announced plans to enter its new, key phase 'SM 3.0', transitioning from a single producer to a multi-production/multi-label system. But as soon as this new phase was announced, it is being reported that hostile merger and acquisition attempts are being carried out, attempts which not only undermine SM's much deliberated decision, but also the values of SM Entertainment which it has built up alongside its artists all these years,” the statement wrote.
“Back on February 3, SM Entertainment announced plans to enter its new, key phase 'SM 3.0', transitioning from a single producer to a multi-production/multi-label system. But as soon as this new phase was announced, it is being reported that hostile merger and acquisition attempts are being carried out, attempts which not only undermine SM's much deliberated decision, but also the values of SM Entertainment which it has built up alongside its artists all these years,” the statement wrote.
Current SM Entertainment CEO Lee Sung Soo is the nephew of Lee Soo Man. The previously announced their vision for the company moving forward without the guidance of their founder.
Current SM Entertainment CEO Lee Sung Soo is the nephew of Lee Soo Man. The previously announced their vision for the company moving forward without the guidance of their founder.
HYBE has shown their intention to acquire up to 40 percent of the total shares in SM Entertainment by March 1.
HYBE has shown their intention to acquire up to 40 percent of the total shares in SM Entertainment by March 1.
Entertainment is home to some of the biggest K-Pop stars such as EXO, Girls’ Generation, Super Junior, TVXQ, NCT, aespa, SHINee, and Red Velvet, among others. Aside from their K-Pop talents, SM Entertainment also manages actors and athletes.
Entertainment is home to some of the biggest K-Pop stars such as EXO, Girls’ Generation, Super Junior, TVXQ, NCT, aespa, SHINee, and Red Velvet, among others. Aside from their K-Pop talents, SM Entertainment also manages actors and athletes.
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