BTS agency HYBE becomes largest shareholder in SM Entertainment

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On Feb. 10, BTS’s agency HYBE announced their plan to acquire a 14.8 percent stake in SM Entertainment. 

SM Entertainment founder Lee Soo-man agreed to let Hybe chairman Bang Si-hyuk buy this massive share for 422.8 billion won. They plan on officially sealing the deal on March 6. 

“This is the biggest, craziest deal I have ever seen in the K-pop industry,” Vivienne Chung (12), BTS fan, said. “It is like when Disney collaborates with Sony. How could two of the most popular record labels decide to get together like this? I think this is a very powerful step that could advance our country’s entertainment industry.”  

Hybe is home to many notable K-pop groups, including BTS, Seventeen, Enhyphen, NewJeans, Tomorrow x Together, and Le Sserafim. On the other hand, SM Entertainment is one of Korea’s oldest and highly recognized K-pop agencies that produced big-name groups like EXO, Red Velvet, and NCT. 

Bang’s strategic plan to associate Hybe with SM will strengthen Hybe’s competitiveness within the K-pop industry, paving the way for its expansion to the global market. 

Both companies saw a rise in stock percentage, with SM shares soaring 16 percent and HYBE rising 3 percent this past week. “This partnership is a vital part of our growth plan to innovate the entertainment industry through a diversified portfolio,” Bang said. “We will work together to continue adding depth of hip-hop to the global music industry.”