The agency of K-Pop Boy Band BTS, HYBE Labels has Confirmed that it wants to buy shares of SM Entertainment, popularly known to be the agency of K-Pop groups like EXO, Red Velvet, SHINee, NCT to name a few.
It is confirmed that as of February 10th 2024, HYBE is now the Largest shareholder of SM Entertainments, acquiring about 14.8% of its stake, although this has resulted in a internal dispute among SM Entertainment Heads, Founder Lee Soo Man and co-CEOs Lee Sung Soo and Tak Young Jun.
Sources say that these shares bought by HYBE have reported the valuation of $900 million approx., and as of today, February 16th, HYBE has submitted an Official shareholder proposal stating to “establish a more transparent governance structure that will maximize shareholder value”, revealed in a press release. As a result of which SM stocks seemed to peak as of February 9th, Thursday, till the market’s close.
History of SM Entertainment and HYBE “rivalry” and the Korean Wave.
In Korean pop culture, HYBE and SM are currently the biggest of all Entertainment companies, commonly referred to as each other’s rivals, following the “fan wars” and clashes among their biggest revenue generating groups, BTS and EXO respectively.
While SM Entertainment, established in 1995, is responsible for the proprietor of the “hallyu” or “korean wave”, commonly referred to as the global recognition and widespread fame of K-Pop and korean culture; HYBE, earlier known as BigHit Entertainments were the pioneers of maintaining and taking that “korean wave” to the epitome, as of present times with BTS being a worldwide sensation.
SM Entertainment’s internal dispute
Lee Sung Soo, co-CEO of SM Entertainment, also the nephew of the late wife of Lee Soo Man, appeared to be projecting his clear disapproval regarding this decision of Soo Man, via his YouTube channel, in a video stating “I wish to explain to you in detail how SM Entertainment came to be in the state it is now” by also mentioning that Soo Man is ruining the company agency by regulating his personal greed and also forcing girl group Aespa in its performance strategy while violating taxes through private companies that are established overseas.
Current Disposition via HYBE’s press released information.
As of Thursday, February 16th morning HYBE has turned in the list of global candidacy list on board, which consists of Jason Lee, President of HYBE America; Nam Kyu Kang, Head Attorney and Managing Partner of GAON LAW GROUP; Jin Hwa Lee, Leader of Financial Planning and Analysis Department of HYBE; Hong Soun Man, Professor of Public Policy Department, YONSEI UNIVERSITY; Lim Dae Woong, Representative of Republic of Korea, UNEP Finance.
HYBE also further stated that the selection of the board members was made deliberately to allow more creative liberty to SM and that HYBE promises to give proper creative freedom and liberty to SM in its decision making.
Fandoms React to the Topic.
This reported deal between two of the biggest revenue generating companies of K-Pop industry, has sparked words of dispute, controversy and yet another upsurge of memes, all across the social media, especially twitter, where the words like “monopoly” were mentioned, implying HYBE taking over a major percentage of the industry.
Some fans engaged in criticizing HYBE’s business decisions as “playing monopoly” and that the industry is “no more about music” but is about “fear”. Some were happy and engaged in celebrating the deal with a pop culture meme, featuring a Member of Boy Band TOMORROW X TOGETHER, Choi Soo Bin.
In contrast to which, Twitter seemed to find a new amusement to mock the situation by creating quip memes into the foray.
