HYBE Labels, the acclaimed South Korean entertainment giant managing artists like boyband BTS and other global K-Pop stars, is reportedly going to acquire the multinational entertainment agency, SM Entertainment. But the Label is not the only one in the competition. Founder and former chairman of SM Entertainment Lee Soo-man is also fighting for the reacquisition of his ex-firm, claims reports. Earlier, rumours were doing the rounds that Internet company Kakao was willing to sell SM Entertainment. Although Kakao originally rubbished the speculations, the latest buzz is that the company is sticking to its original plan with other agencies eyeing to acquire SM Entertainment.
According to a report by Koreaboo in 2023, HYBE attempted to strike a deal to acquire SM Entertainment. Although it made the headlines back in the day, the contract “fell through” due to reasons unknown. However, as per media portal ChosunBiz, HYBE Labels will once again step into the business market to obtain SM Entertainment. Fresh reports suggest that HYBE CEO Bang Si-hyuk has approached private equity funds (PEFs) secretly with a proposal to buy SM Entertainment. This low-key approach implies a carefully planned and cautious strategy this time, as opposed to the prior high-profile attempt. “Since Chairman Bang himself stepping forward directly may not look good, it is understood that he made the proposal privately to (financial investors),” Koreaboo quoted an industry insider as saying.
In what can pose a tough competition to HYBE Labels, Lee Soo-man is in the talks for his potential reacquisition of SM Entertainment. The former chairman of the company previously sold HYBE 14.8 percent of SM Entertainment’s shares. His current court proceedings hint that he might be thinking about making a comeback to reclaim his position. Lee Soon-man’s request to examine board meeting minutes and SM Entertainment documents has been granted by the court, signifying that the ownership dispute may be revised.
It is also rumoured that American entertainment group MGM, fashion brand F&F, and gaming giant NCSOFT are eagerly waiting for the opportunity to buy SM Entertainment. According to All K-pop, Kakao recently launched a forensic audit to dismiss the executives from SM Entertainment who were responsible for allegedly ousting Lee Soo-man. Further details of the company that will finally acquire SM Entertainment are yet to be determined.
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