![\"Entertainment\"](\"https:\/\/www.digitalmusicnews.com\/wp-content\/uploads\/2021\/02\/Seoul-Main.jpg\" "\\"Entertainment\\"")
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Seoul, South Korea. Photo Credit: Ciaran O\u2019Brien<\/p>\n<\/div>\n
Entertainment 12 days after formally ending<\/a> a much-publicized campaign to take over SM Entertainment, BTS agency Hybe is selling its stake in the rival K-pop company. <\/strong><\/h2>\nThis latest twist in the SM-Hybe showdown just recently came to light in regulatory filings. Towards February\u2019s beginning, not long after scooping up Quality Control<\/a> and emphasizing its ambitious global-expansion plans, Hybe purchased 14.8 percent of SM from founder (and former chief producer) Lee Soo-man \u2013 thereby becoming the largest shareholder.<\/p>\nAnd as Hybe disclosed a goal of increasing the interest to a controlling 40 percent stake, SM revealed the framework for a \u201c3.0\u201d transformation and publicly pushed back against the competing business\u2019s outlined takeover. Both companies launched websites dedicated to advancing their respective positions, which were likewise explained through all manner of in-depth resources and videos.<\/p>\n
Meanwhile, SM unveiled a pact with Kakao\u2019s entertainment division (which is backed by Saudi Arabia and others<\/a>), proposing the sale of around nine percent of SM, a distribution tie-up, and the creation of a jointly owned stateside unit. For obvious reasons, Hybe (successfully) attempted to halt the contract in a South Korean court.<\/p>\nBut Hybe\u2019s tender offer for another 25 percent of SM (priced at \u20a9120,000\/$92.57 per share), to reach the aforesaid 40 percent controlling stake, fell far short of the objective, ultimately bringing under one percent more of the company to Hybe. Kakao subsequently rolled out a tender offer of its own (priced this time at \u20a9150,000\/$115.71 per share).<\/p>\n
The latter, and specifically an observation \u201cthat the market has been showing signs of overheating due to competition with both Kakao and Kakao Entertainment,\u201d then prompted Hybe to pull back. And now, according to the highlighted regulatory documents, the Supertone<\/a> owner is looking to cash out of all 3,757,237 of its SM shares.<\/h4>\n
And as Hybe disclosed a goal of increasing the interest to a controlling 40 percent stake, SM revealed the framework for a \u201c3.0\u201d transformation and publicly pushed back against the competing business\u2019s outlined takeover. Both companies launched websites dedicated to advancing their respective positions, which were likewise explained through all manner of in-depth resources and videos.<\/p>\n
Meanwhile, SM unveiled a pact with Kakao\u2019s entertainment division (which is backed by Saudi Arabia and others<\/a>), proposing the sale of around nine percent of SM, a distribution tie-up, and the creation of a jointly owned stateside unit. For obvious reasons, Hybe (successfully) attempted to halt the contract in a South Korean court.<\/p>\n But Hybe\u2019s tender offer for another 25 percent of SM (priced at \u20a9120,000\/$92.57 per share), to reach the aforesaid 40 percent controlling stake, fell far short of the objective, ultimately bringing under one percent more of the company to Hybe. Kakao subsequently rolled out a tender offer of its own (priced this time at \u20a9150,000\/$115.71 per share).<\/p>\nThe latter, and specifically an observation \u201cthat the market has been showing signs of overheating due to competition with both Kakao and Kakao Entertainment,\u201d then prompted Hybe to pull back. And now, according to the highlighted regulatory documents, the Supertone<\/a> owner is looking to cash out of all 3,757,237 of its SM shares.<\/h4>\n