Today, the deal between HYBE and SM has surprised Kpop fans. The handshake between Bang Shi Hyuk and Lee Soo Man is a deal that no one could have expected that SM would one day be owned by HYBE.
However, to reach this deal, HYBE has gone from a small company with less than 20 employees to a corporation with many brands and business areas under its control, and now includes SM. This is thought by netizens to be largely due to the contribution and burden of BTS - the group that has accounted for 60% of HYBE's sales over the years.
Thus, it has netizens curious as to how much money BTS has actually made over the years to make HYBE enough to buy back Lee Soo Man's shares:
Today, after much speculation, HYBE announced that they have acquired a 14.8% stake in SM Entertainment founder Lee Soo Man, making them the largest shareholder in the company. Specifically, in the statement, they wrote that: "We 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."
Regarding this, Bang Si Hyuk and Lee Soo Man released a joint statement explaining the reasons behind the acquisition as well as their plans for SM Entertainment in the future. They stated the same vision and direction that: "SM Entertainment’s largest shareholder and founder, former executive producer Lee Soo Man and HYBE’s chairman, Bang Si Hyuk, have joined hands so that SM Entertainment and HYBE will become game changers in the world’s popular music.
This will enhance K-Pop’s global competitiveness, and we have decided to make our shared vision of a lifestyle platform for future endeavors a reality."
Besides that, they also added, "SM Entertainment and HYBE will combine their capabilities to globalize K-Pop and will create a strong synergy in various businesses beginning with labels and platforms. We will enhance the current platform leading the global market so that the world’s fans will be able to meet more artists and experience the joy of K-Pop.
We ask that you support the future that SM Entertainment and HYBE will create together."
This has made the Kpop fan community extremely surprised and surprised by the merger decision of the two giants in the entertainment industry. In addition, one must also be amazed at the ambition and potential of HYBE when becoming the largest shareholder of SM Entertainment.
HYBE used to be looked down on when it was Bł₲ Ⱨł₮ Music because they believed that Bł₲ Ⱨł₮ couldn't compete with SM - one of the 3 biggest Kpop companies. But since witnessing the rise of BTS, HYBE later rose to become one of the larger corporations than SM, YG and JYP combined. And now, they even almost hold SM under them.
This surprised netizens but wasn't as curious as how much money BTS ended up making all these years for HYBE so that they now have such a tremendous amount of power. BTS is reported to contribute 60% of HYBE's total sales each year and that's a huge number.
It is difficult to imagine that exactly how much it is:
- I admit that BTS created HYBE, but SVT also makes a lot of money, group T, group NJs, group L* are also successful and popular. Stop fantasizing:
>> It's true that BTS created HYBE, how did a small entertainment company with a single group grow into a corporation with many labels?
>> Those groups aren't as profitable as BTS, even if compared to BTS's profits, it's not even a few percent.
>> BTS are the people who contributed to the establishment of the group, but without BTS, would N* group L* group T* and others make their debut?
>> What has always been pointed out in HYBE's annual report on the stock market and is also a chronic problem is that BTS's percentage of sales in revenue is too large, you can see at first glance in group sale announced last year.
>> Listen carefully
• Money used to buy other labels = Money Bangtan earns
• Money used to debut rookie = Money Bangtan earns
• HYBE has added a few artists, but accounts for just over half of current sales = Money Bangtan earns
• Total sales of HYBE artists <<<<<<< BTS sales
>> BTS still accounts for 70% of sales... Now, some rookie groups have developed and HYBE continues to buy and manage different entertainment companies. From the very beginning, the birth of HYBE was built with the money BTS earned. BigHit (HYBE) made a lot of money, but at that time it was only BTS who helped HYBE to buy other entertainment companies and increased the number of artists as now.
Even Bang Shi-hyuk doesn't know how he managed to gather all the BTS members like this. And if a group like BTS was born with the simple plan of an entertainment company normally wouldn't compete with many groups as HYBE now? Like the OP said, no one makes money alone and BigHit certainly can't make money alone without BTS ㅋㅋㅋㅋ
>> Before the debut of group T*, BTS earned hundreds of billions of KRW and prepared the basis for the stock listing to open the corporation, how about fantasizing ㅋㅋㅋㅋ Even now, 65-70% of HYBE's sales are BTS's . HYBE developed more areas like IT and the name BTS is still used to name games that are released.
- I'm curious too...This is the first thing that comes to my mind when I read the news
- Even if BTS makes a lot of money for the company, it seems they are trying to ignore BTS. Please treat the members fairly
- I just want the company to treat BTS well, then BTS will make even more money in the future
- Profits from albums, digital music, concerts and goods... Honestly, each member has earns at least 10 billion KRW in cash.
- How much money did BTS brought for HYBE to make today's deal come true?
- Simply, HYBE can buy SM's stocks because BTS makes more money than all the groups under SM combined.
- If you used the money BTS earns, let's invest in BTS back
- Please treat BTS well
- Since they have BTS, the bank will lend the company hundreds of billions of dollars
- Treat BTS well! Solo activities are like group activities, one member at a time, then one member after another, why can't it be okay to keep piling up activities like this! F*ck, I'm really curious, doesn't the company support several teams dedicated to solo activities for each member
- Since BigHit Ent's time, only BTS's sales have already surpäṩṩed Big3's
- The company made a lot of money when BTS was successful, then became a corporation, bought labels and made 2 times that amount
- Regardless of whether the sales are public and the scale is further developed, it is undeniable that the first platform to make money, the beginning of the company is Bangtan... Since BigHit has earned too much already, so please treat Bangtan better
- On the day of the Busan Yet To Come concert, which was broadcast live worldwide, broadcast on Mnet and premiered in cinemas, it made over 10 billion KRW in North αmєrícα alone ㅋㅋㅋㅋ In jαpαn also 250,000 viewers in the first week right? While performing in Las Vegas, sales of the ARMY BOMB lightstick alone reached 10 billion KRW ㅋㅋㅋㅋ BTS is a legend
- It is said that BTS created BigHit but BigHit is the one who created BTS. BTS got its current position thanks to BigHit's support.
>> So why is it that you can't do it all the time when you call it a 2nd BTS? ㅋㅋㅋ
>> From Bangtan's debut until 2018, BigHit only made money from Bangtan and no one else, without Bangtan, wouldn't HYBE now just like a dream?
- Bangtan has risen to the top of album sales many times, it's really amazing. If I were Bang Shi-hyuk, I would carry BTS on my back, I really don't understand why he still treats them like this. Because BTS is so big, they have to try to drown them?
- The truth is that to the international press, HYBE is just BTS's company. HYBE - BTS = 0, which means you have nothing. Admittedly, it was BTS who started the success, not BigHit, not even HYBE.
- If it wants to negate BTS's reliance on profits or influence, then HYBE must eliminate all sources of profit based on BTS brand value, from goods to all unreleased games, no using BTS's name to make money too, can it be done? Bangtan's career is deliberately ignored for the sake of reducing dependency, what kind of chode company is this?
- Bangtan really doesn't show off money. After becoming Ambäṩṩadors, they began to upload images of luxury brands on SNS. Only when fans see the photo posted by BTS and find the items that αccídєntally appear in the photo, do they realize how many zeros after in the items, not to mention using a blackcard to buy water at the vending machine and he couldn't buy it so he thought that the machine was broken... My boys are young & rich, fans probably know that BTS is rich but they really don't know exactly how much their wealth is.
