SM Entertainment shares also rose on news that HYBE had acquired a 14.8% stake in the company.
Revenues increased to $642.2 million ahead of the company's spin-off of its live entertainment business, which it expects to complete by the end of March.
The company will terminate the controversial policy for some attorneys as it prepares to unload the hospitality group, though employees at firms involved in non-Tao lawsuits will still be shut out.
The exec has worked at the company for 25 years and was behind successes including Harry Styles at MSG and Jerry Seinfeld at the Beacon Theatre.
