The agency that created BTS is embroiled in a public struggle with SM’s powerhouse founder Lee Soo-man. Will it end with a cliffhanger?
The companies are wrestling for control of SM with competing board slates at the March 31 annual meeting in Seoul.
The announcement came a day after a court injunction forced Kakao to cancel its plan to acquire a 9.05% stake directly from SM.
Tech giant Kakao had agreed to buy shares as part of a partnership agreement, which SM founder Lee Soo Man opposes; he turned to rival HYBE instead.
HYBE, which owns a 14.8% stake in the competing K-pop company, criticized the tie-up with tech company Kakao as one-sided and harmful to shareholders.
Concert revenue grew tenfold for the NCT Dream and Red Velvet label, while recorded music sales declined 3.7%.
Last year, HYBE's increasingly diversified business was nearly balanced between its three largest markets: Korea (33% of revenue), North America (32%) and Japan (28%).
With a major acquisition and an investment this week, the K-pop powerhouse is further diversifying and establishing itself on the world stage.
SM Entertainment shares also rose on news that HYBE had acquired a 14.8% stake in the company.
The shares were acquired from SM Entertainment founder Lee Soo Man.
