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yesterday

HYBE Sells Remaining SM Entertainment Stake to Tencent Music in 243 Billion KRW Deal

By making Tencent Music SM’s second-largest shareholder, HYBE signals its strategic return to core operations ahead of BTS’s comeback.

The logo of Tencent is seen at Tencent office in Shanghai, China December 13, 2021. REUTERS/Aly Song/File Photo
BTS Agency HYBE Sells ALL Stakes In EXO's SM Entertainment To THIS Massive Competitor
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This undated file photo shows the headquarters of Hybe, the K-pop powerhouse behind supergroup BTS, in Seoul. (Yonhap)

Overview

  • HYBE is divesting its full 9.66% stake in SM Entertainment, selling 2.2 million shares to Tencent Music for 243 billion KRW (about USD 178 million).
  • The shares are priced at 110,000 KRW each, roughly 15% below SM Entertainment’s current market value.
  • The block deal is set to close after market hours on May 30, positioning Tencent Music as SM’s second-largest shareholder behind Kakao.
  • SM Entertainment’s stock has risen about 20% over the past month as investors bet on a potential easing of Chinese restrictions on Korean entertainment.
  • The sale is part of HYBE’s plan to offload non-core assets and focus on its main label interests as BTS members prepare to return from military service.