The internet company Kakao and the Bulletproof Boys Group (BTS) agency group HYBE had been publicly acquiring shares for the management rights of South Korea’s SM Entertainment over the past month, sending SM shares soaring; today, the two sides announced that they had reached an agreement, with HYBE ceasing the acquisition and the management rights being acquired by Kakao.
A report from JoongAng News Agency says that SM Entertainment, one of the most famous Korean agencies that have produced popular idol groups like Dong Fang Shen Jie, Super Junior, Girls’ Generation, EXO, NCT, and aespa, has caused a dispute over the management rights by changing its internal management policy.
HYBE came out to buy 14.8% of the shares held by SM’s founder and former chief producer. Kakao, which backs the current management team, announced a public purchase of zero shares at a price higher than the market price. This caused SM’s share price to jump from 90,000 won (about NT$2,200) per share to more than 160,000 won, and the acquisition costs for both sides may also go through the roof.
HYBE said this morning that it had reached an agreement with Kakao. To stop competition between the two companies from making the market too hot, which could hurt HYBE’s share price, HYBE decided to stop the acquisition of SM and pull out of the SM internal director election before the regular shareholders meeting at the end of March. Discussions are still going on about external director candidates.
HYBE has yet to decide what to do with its shares in SM, including the 14.8% shares it bought from Lee Soo Man. On the platform, however, it is likely to work with Kakao, which will run SM in the future.
A report from JoongAng News Agency says that SM Entertainment, one of the most famous Korean agencies that have produced popular idol groups like Dong Fang Shen Jie, Super Junior, Girls’ Generation, EXO, NCT, and aespa, has caused a dispute over the management rights by changing its internal management policy.
HYBE came out to buy 14.8% of the shares held by SM’s founder and former chief producer. Kakao, which backs the current management team, announced a public purchase of zero shares at a price higher than the market price. This caused SM’s share price to jump from 90,000 won (about NT$2,200) per share to more than 160,000 won, and the acquisition costs for both sides may also go through the roof.
HYBE said this morning that it had reached an agreement with Kakao. To stop competition between the two companies from making the market too hot, which could hurt HYBE’s share price, HYBE decided to stop the acquisition of SM and pull out of the SM internal director election before the regular shareholders meeting at the end of March. Discussions are still going on about external director candidates.
HYBE hasn’t decided what to do with its shares in SM, including the 14.8% shares it bought from Lee Soo Man. On the platform, however, it is likely to work with Kakao, which will run SM in the future.
