HYBE has announced they have become the number one shareholder in SM Entertainment, acquiring most of Lee Soo Man‘s stocks.
In a statement shared with various media outlets including Sports Donga, HYBE announced they acquired 14.8% of SM Entertainment’s stocks, making them the highest shareholder in the company.
"We have signed a contract on February 8 to acquire a 14.8% stake, or 3,523,420 shares, in SM Entertainment that were previously held by Lee Soo Man".— HYBE
The shares are expected to be transferred at a valuation of ₩120,000 KRW (about $94.90 USD) each, meaning the entire deal will be worth ₩423 billion KRW (about $334 million USD). The deal is expected to be finalized on March 6.
Lee Soo Man was the previous number one shareholder in SM Entertainment, holding 18.46% of the company’s stock. This deal will leave him with 3.66% of the company’s stock. Earlier, it was reported that SM Entertainment and Kakao joined hands, with further news stating that Lee Soo Man disapproved of the deal and is intending to sue the directors of SM Entertainment.
K-netizens also have some comments about this news:
- This kdrama keeps dramaing adding more and more layers as we go
- are they buying SM or what?? and what does SM exactly do? artists agency?
- Lets hope good changes can be seen for artists from both company and hope they utilise this in good way rather than being one and only like so much power to change in fair and positive way.
- Considering, no finality. And I hope they change their mind.
- I really hope this is not true..we have no wish for Hybe to stick their fingers in the political war of LSM and his nephews. Those ppl are corrupted as hell and it will only taint Hybe's image and reputation to be involved with them. Hybe is already doing so good on their own.
- Hmmm HYBE was rumored to be buying SM or be part of a bid to takeover SM since last winter. When this is all said and done, I hope someone does some sort of comprehensive review
- As a fan I don't like it. But as somebody who is interested in company growths and developments it is very interesting. How would that work out? I feel like the core philosophies of both companies are absolutely different. HYBE values idols as artists and SM doesn't.
- This is interesting because I thought back then Hybe was thought to have the least chance of acquiring LSM's stake because of SM/Hybe competition or perhaps personal rivalry. Though that latter bit is my own interpretation.
- i really cannot imagine a world in which hybe owns sm like sm's "musical direction" (to put it nicely) does not align with hybe's at all.
- This is the kind of thing that never would have crossed my imagination… a bit surreal! Whatever ends up happening, I hope the artists benefit from it!
