Kakao offers to increase stake in K-pop entertainment company SM to counter HYBE interest

카카오, 하이브에 대반격 "SM주식 15만원에 사겠다" 최대 35% 확보 가능할까

South Korean IT giant Kakao Corporation and its subsidiary Kakao Entertainment, have launched a tender offer to become the largest shareholder of SM entertainment in a bid to fight off interest from BTS' label HYBE.
Kim Jung-sil has the details.

A battle between Kakao and HYBE may have begun.

Kakao Corporation and its entertainment unit, Kakao Entertainment, have launched a bid to increase their stake in K-pop label, SM Entertainment by 35%.
Details of the plan came to light through a regulatory filing by Kakao on Tuesday.
According to the document, Kakao Corporation and its subsidiary are making an offer totaling almost one billion U.S. dollars during the tender offer period from Tuesday until March 26th.
Kakao called the decision, something that will "strengthen its strategic partnership with SM".

The bid price is 150,000 KRW or about 115 U.S. dollars per share , 25% higher than HYBE's proposed 120,000 KRW per share which was made last month.
HYBE, the label behind BTS, only managed to acquire 0.98% of SM through a tender offer in February, only a small fraction of their 25% goal , opening the door to a bidding war.
That brought HYBE's SM holdings to 15.78% , with an additional 3.65% of voting rights handed over by SM's founder, Lee Soo-man.
Kakao already owns a 4.9% stake in SM and if the deal goes through it will become SM's largest shareholder. bolstering SM's efforts to prevent HYBE from taking control of its rival K-pop label.
Experts say there's still a chance that HYBE will launch another tender offer to counter Kakao's bid.
Kim Jung-sil, Arirang News.

#Kakao #HYBE #SM_Entertainment #카카오 #하이브 #SM엔터테인먼트 #Arirang_News #아리랑뉴스

2023-03-07, 12:00 (KST)

[ridoanislam]

Oh boy..
Things are starting to get real bad now..

[MrYevelnad]

Seems like Kakao lost it and this whole deal become a battle of pride. Artists will be squeeze dry to make back of the money they used for the purchase.

[방탄소년단을사랑-kk]

Hybe sells the shares and lets SM destroy itself 😅

[brandoncrenshaw]

SM entertainment needs to work on their management now that they got rid of that criminal the founder the company can work and build trust with the fans once again they don't need either of those companies SM Entertainment you can do fine on your own

[ladylazmo]

Any which way the manuvers by SM n Kakao, in the end Hybe will take the credit.

[xlc]

I love how Hybe handle their artists but I want Kakao to get it just coz I'm curious how they will treat SM artists.

[crazylittlebigthings]

Now hybe can just sell it shares and let SM go bankrupt after. Lol

[kidsad-yp]

Okay hybe sell your share and run, the ship are sinking !

[sz]

maybe uhybe stan should worry about hybe. hybe just raise the share up to 180k won per share and its about 700 million us dollar. they will loss for sure if they buy 20% bc they will buy higher than the market price. hybe made a loan for 14% share and now they have to do it again? sm stock expected to go down after 31/3. so who need to cover for those loan? obviously hybe artist bc they fully own them, and sm artists if hybe successfully buy another 20%.

[alphazunitee]

I got really distracted seeing NCT dancing at the end. IMO Kakao is a better option - more diversity in the market

[jolenegibson]

Am going to kakoa is going from criminal to criminal. Just look at kakoa news. From being fined in the fir trade to tax evasion to works rights. Sm Stan’s need to be worried for their idols. Kakao was already investigated with idol manipulation is that what you guys want for your idols. Be realistic with everything. Investigate fully. Sm mangement is criminal as much as Lee soo man was. The aided him for money as well. Chris lee lived on that money. He is not innocent