Hybe, the company representing top-selling South Korean boy band BTS, dropped its plan to take management of Ok-pop pioneer SM Entertainment, the corporate stated on Sunday.

Hybe’s withdrawal put an finish to a weeks-long takeover battle with social media big Kakao, and can permit Kakao to develop its leisure enterprise additional.

Hybe stated its choice to halt the takeover bid got here after the value to accumulate SM exceeded a good vary because the competitors intensified.

Kakao final week launched a 1.25 trillion gained ($946.80 million) tender bid for as much as 35% of SM Entertainment at 150,000 gained per share, properly above the 120,000 gained per share provide from Hybe for a 25% stake that gained little traction with shareholders.

On Friday, shares in SM Entertainment closed at 147,800 gained.

Hybe stated after talks with Kakao, the 2 firms agreed to cooperate on issues associated to their platforms.

Lee Jong-im, a Seoul-based tradition critic, stated the takeover of SM was the most recent of a sequence of efforts by Kakao to develop its content material and leisure arm in recent times.

In 2021, Kakao Corp acquired a number of content material firms, together with online game developer NFLY STUDIO.

Kakao Entertainment, a subsidiary of Kakao, additionally invested 12 billion gained in Metaverse Entertainment, which makes a speciality of digital idol teams.

Kakao and SM Entertainment stated they welcomed Hybe’s choice to drop its bid.

“Kakao and Kakao Entertainment will continue its tender offer bid until the 26th to secure a further stake and work on the details of business cooperation between HYBE and SM,” Kakao stated in a press release.