Seoul/Hong Kong
CNN
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HYBE, the governing body behind the superstar boy band BTSwill become the largest shareholder of K-pop rival, SM Entertainment.
The South Korean entertainment giant announced the deal on Friday, with HYBE going to buy a 14.8% stake in SM Entertainment for 422.8 billion won ($334.5 million).
SM was founded by legendary music producer Lee Soo-man, who is known by many in Korea as the “godfather of K-pop”. The company is known for representing popular artists like NCT 127, EXO, BoA, and Girls’ Generation.
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News that the two companies have cooperated stimulate investors. Shares of SM Entertainment rose 14.1% in Seoul on Friday, while shares of HYBE rose 6.4%.
“This acquisition represents an important step for HYBE to integrate the global expertise of both companies to become a game changer in the global music industry,” HYBE said in a statement. .
HYBE has been taking steps to expand its global reach. On Thursday, it announced another major deal in the United States, said it would acquire the owner of Quality Control, a hip-hop label that represents popular artists including Migos and Lil Yachty.
