85

10

News
Posted by Yaki-Jones Saturday, March 11, 2023

HYBE and Kakao settle to stop competing over acquiring SM Entertainment

AKP STAFF

It was reported Kakao and HYBE have settled to stop the chicken game over the acquisition of SM Entertainment

According to the financial industry on March 11th, Kakao, and HYBE reached an agreement on March 10th. The two have been competing to become the largest shareholder of SM Entertainment before the shareholder meeting on Mach 31st. The details of the agreement are yet to be known but it was reported the two have settled that not one of them should become the single largest shareholder.  

Meanwhile, Kakao and HYBE have been playing a chicken game over SM Entertainment's stocks. When HYBE failed to acquire 25% of SM's shares, Kakao announced on March 7th that it will be offering to purchase 35% of shares of SM Entertainment at 150,000 KRW (114.45 USD) until March 26th.

It seems they both have settled after concluding this type of race does not help either one of them. The industry warned of the winner's curse and the Financial Supervisory Service is keeping a close eye on their deals to ensure there was no market manipulation in tender offers. Additionally, criticisms of these labels that they are neglecting K-Pop fans' concerns arose.

Stay tuned for the updates on the takeover. 

  1. misc.
53 31,921 Share 89% Upvoted
 
Bored22
Bored221,735 pts Saturday, March 11, 2023 4
Saturday, March 11, 2023

Well, it is probably the only way this was going to end quickly 😐 Aww they are like one GIANT happy, slightly dysfunctional family 🙃

15 (+15 / -0)
Share

4 more replies

 
bae-bae
bae-bae4,838 pts Saturday, March 11, 2023 1
Saturday, March 11, 2023

I don't understand much since the agreement isn't clear yet but this somehow feels worse than only one of them having majority control of SM

10 (+13 / -3)
Share

1 more reply

SHOW ALL COMMENTS

allkpop in your Inbox

THE TOP 10 STORIES DELIVERED DAILY
misc.
Rosé
Song Hye Kyo
Min Hee Jin, NewJeans
Jiyeon
BLACKPINK, Rosé
BOYNEXTDOOR
Rosé
misc.
NCT Dream
Rosé
misc.
Song Hye Kyo
Lee Soon Jae
Big Bang, Taeyang, G-Dragon, Daesung
New Message

SEND