- HYBE will purchase shares from rival SM Entertainment.
- HYBE is now SM Entertainment’s largest stakeholder.
- Kakao Corp also announced it will purchase the shares.
In order to improve its dominance in the K-pop sector, the South Korean entertainment business HYBE said on Friday that it will purchase shares from rival SM Entertainment for 423 billion won ($334.51 million).
With a 14.8% stake following the transaction, HYBE is now SM Entertainment’s largest stakeholder.
Following the announcement, shares of HYBE and SM Entertainment increased by 4% and 14%, respectively.
BTS, a K-pop megaband, is managed by the company HYBE.
Kakao Corp, a South Korean tech company, said earlier this week that it will purchase a 9.05% share in SM Entertainment in order to work on cooperative initiatives, such as international K-pop auditions.
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