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.
The label that developed Migos, Lil Baby and others will now fall under HYBE America and the leadership of CEO Scooter Braun.
Braun, who joined HYBE in 2021 via the company’s acquisition of his Ithica Holdings, shared the CEO title with Lenzo Yoon until recently.
Braun, who joined HYBE in 2021 via the company's acquisition of his Ithica Holdings, shared the CEO title with Lenzo Yoon until recently.
