HYBE has officially moved to discontinue their acquisition of SM Entertainment and its management rights.
According to a press statement, HYBE has decided to withdraw from the acquisition “after observing that the market has been showing signs of overheating due to competition with both Kakao and Kakao Entertainment.” HYBE has also taken the “potential negative impact on HYBE’s shareholder value” into consideration.
Last month, HYBE acquired the shares of Lee Soo Man, SM Entertainment’s founder, making the company the largest single shareholder. HYBE had made the tender offer based on a “a fair acquisition price range,” however, the competition for acquisition has intensified with both Kakao and Kakao Entertainment in the mix.
HYBE came into discussion with Kakao and has decided to terminate the process of acquisition of SM Entertainment’s management rights. The two companies also agreed to cooperate on ” matters related to their platforms.”
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News Summary:
- HYBE to discontinue acquisition of SM Entertainment and its management rights; agrees to cooperate with Kakao on platform-related concerns
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