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On February 21, HYBE denied that the acquisition of SM Entertainment shares was a hostile takeover of SM Entertainment.
According to Yonhap News, HYBE acknowledged, “Plan(s) to acquire rival K-pop company SM Entertainment is not part of any hostile takeover strategy, and it can actually help SM artists advance to the North American market if the plan is realized.”
Previously, HYBE – dwelling to the worldwide celebrity group BTS – agreed to accumulate a 14.8% stake in SM Entertainment from Lee Soo Man. The label additionally supplied to purchase a further 25% from different SM shareholders in a young supply and aimed to realize a complete of 40% stake in SM Entertainment. This led the present administration of SM Entertainment to accuse HYBE of a hostile takeover.
However, HYBE defined they aren’t pursuing a hostile takeover. HYBE CEO Park Ji Won defined, “We don’t think the company’s acquisition of SM shares is a hostile takeover. That’s because we agreed to buy shares held by SM’s largest shareholder (Lee Soo Man) through mutual consent and publicly offered to buy shares from smaller shareholders on the same condition(s) as the largest shareholder.”
CEO Park additional elaborated, “HYBE can help SM artists advance into the North American market using BTS’ great achievements in the market along with the network and know-how of Ithaca Holdings.“
CEO Park Ji Won added that “SM Entertainment is trying to establish a multi-production and label system and using the intellectual property rights of its artists for products other than music such as merchandise and games. Both strategies have long been pursued by HYBE, so it can help SM carry out its plans.”
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