BTS agency HYBE acquires stakes in rival SM Entertainment; becomes the largest shareholder

Seoul: HYBE, the company handling K-pop groups like BTS, Tomorrow X Together, among others has now acquired stake in rival company, SM Entertainment. SM is one of the biggest labels in South Korea and home to artists that include Aespa, NCT, Exo, Super M, among others. As per reports, HYBE has now acquired shares worth 422.8 billion won, making it the largest stakeholder in SM Entertainment.

As per the press release shared by HYBE, the company has purchased 3.5 million shares from SM Entertainment founder Lee Soo-man at 120,000 won per share. The deal gives HYBE a 14.8% stake in SM.

Founder Lee, owned around 18.5% stake in SM Entertainment. The press release by HYBE reads, “ HYBE fully agrees with Lee’s strategic initiatives including metaverse, a multi-label system and the sustainable vision campaign. Leveraging our capabilities and resources, HYBE will further strengthen the presence of K-pop in the global stage.”

HYBE added that they will focus on improving SM Entertainment’s corporate governance. Several questions have been raised about this takeover. While some authorities at SM are opposed to the idea, many others in the industry are betting on this. Fans, however, have a mixed reaction to this business news as well.

Meanwhile, HYBE has been expanding its investment in the past few years. On Wednesday, the American wing of the company purchased QC Media Holdings adding artists like Migos, Lil Baby, Lil Yachty and City Girls to HYBE’s roster.