HYBE and SM Entertainment’s shares soar after the deal is announced
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.
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.