K-pop powerhouse HYBE is selling its remaining stake in SM Entertainment to China’s largest music streaming firm Tencent Music for 243.4 billion won (€157 million).

With the purchase of HYBE’s 9.7% stake, Tencent is expected to become the second-biggest shareholder in Seoul-based SM behind South Korean internet giant Kakao.

“We are divesting non-core assets to sharpen our strategic focus,” said a HYBE representative. “The proceeds will be used to secure new growth drivers.”

Multi-faceted Korean live entertainment behemoth HYBE is home to artists including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen. It has been gradually selling off its shareholding in SM – which launched acts such as H.O.T., Girls’ Generation, EXO, NCT and Aespa – after abandoning its takeover bid for the company in March 2023.

“With Tencent becoming SM’s second largest shareholder, SM stands to gain significantly if China eases its ban on Korean cultural content”

Kakao ultimately secured a 42% controlling stake in SM, held via Kakao Corp and affiliate Kakao Entertainment.

The Korea Economic Daily reports that Tencent’s move comes amid rising expectations that China will lift its unofficial nine-year ban on Korean pop culture, imposed in 2016 in retaliation to South Korea’s deployment of US THAAD missile defence systems.

“With Tencent becoming SM’s second largest shareholder, SM stands to gain significantly if China eases its ban on Korean cultural content,” Hana Securities analyst Lee Ki-hoon told the publication.

Last month, HYBE delivered its biggest Q1 financial results yet after tripling its concert revenue.

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SM Entertainment has revealed details of a huge K-pop stadium spectacular coming to London as part of the label’s 30th anniversary celebrations.

In collaboration with London/Seoul-based concert producer and tech firm Frontrow, the company is bringing its SMTown Live concert to the UK for the first time this summer.

It will be held at London’s Allianz Stadium Twickenham on 28 June. EXO’s SUHO and CHANYEOL, NCT DREAM, WayV, RIIZE and NCT WISH head the first wave of performers confirmed for the show.

The event will mark the first time SM’s label-wide concert has visited Europe since 2010 in Paris

The event will mark the first time SM’s label-wide concert has visited Europe since 2010 in Paris.

SMTown LIVE 2025 launched last month with two sold-out concerts at Seoul’s Gocheok Sky Dome in South Korea. Both Seoul concert dates sold out immediately, according to organisers, with 40,000 fans in attendance over the weekend of 11-12 January.

It will next head to Mexico City’s Estadio GNP Seguros on 9 May, followed by Los Angeles’ Dignity Health Sports Park on 11 May. The series will conclude in Tokyo, Japan, on 9-10 August, at a venue to be confirmed.

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K-pop giant SM Entertainment has unveiled the full lineup for the first Mexico City edition of SMTown Live.

Since launching in 2008, the K-pop tour has been held in major cities worldwide including Seoul, New York, LA, Paris, Dubai, Santiago, Tokyo, Beijing, Shanghai, Bangkok, and Singapore.

The first-ever Mexico instalment, co-promoted with Ocesa, will take place on 9 May at the GNP Seguros Stadium with acts including TVXQ!, Super Junior, SHINee’s Key and Minho, EXO’s Suho and Chanyeol, Red Velvet (without Wendy and Yeri), and NCT 127.

NCT Dream, WayV, aespa, RIIZE, NCT WISH, Naevis, Hearts2Hearts and SMTR25 are also featured on the bill.

Mexico City is one of five stops on this year’s SMTown Live tour, commemorating SM Entertainment’s 30th anniversary

Mexico City is one of five stops on this year’s SMTown Live tour, commemorating SM Entertainment’s 30th anniversary.

The outing kicked off with a two-night residency at Seoul’s Gocheok Sky Dome on 11 and 12 January, and heads to Mexico City and Los Angeles in May, London in June and Tokyo in August. Additional cities are expected to be added.

Alongside SM, the tour is promoted by AEG Presents and K-Pop touring and marketing company Powerhouse, which formed a strategic partnership in 2022.

SM Entertainment, founded in 1995 by Lee Soo-man, is widely credited with laying the foundation of the K-pop industry through its first-generation idols, namely H.O.T., S.E.S. and Shinhwa. Soo-man’s relationship with SM Entertainment dramatically ended in early 2023 after a management dispute, with the pioneer launching a rival agency.

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K-pop pioneer Lee Soo-man has launched a new agency after leaving SM Entertainment, the influential entertainment company he founded almost 20 years ago.

Under his leadership, the Seoul-headquartered firm developed the systematic training model that would become the blueprint for K-Pop idol development, launching acts such as H.O.T., Girls’ Generation, EXO, NCT, and aespa.

However, Lee’s relationship with SM Entertainment dramatically ended in early 2023 after a management dispute. As a result, he sold his stake in SM to the company’s rival, HYBE, sparking a battle for control of the company. HYBE ultimately abandoned its controversial move to take over SM, with parent company Kakao gaining control.

Lee then established his new company, Blooming Grace, which focuses on environmental, social and governance contribution projects and cultural technology development. Blooming Grace filed a trademark application for a new company called A2O Entertainment in May.

A2O Entertainment unveiled its first slate of trainees through a promotional video released last week

A2O Entertainment unveiled its first slate of trainees through a promotional video released last week via YouTube and Weibo (a Tencent-owned social media platform in China), introducing artists categorised into three groups: Rookie HTG (High Teen Girls, 16 and older), Rookie LTG (Low Teen Girls, 15 and younger), and Rookie LTB (Low Teen Boys, 15 and younger).

The launch floated a new music genre that the agency dubbed ‘Zalpha-Pop,’ targeting the Zalpha generation (Gen Zs and Alpha, born from the mid-1990s to the 2010s). The agency’s YouTube page has already attracted over 5,000 subscribers and nearly 95,000 views.

Throughout their training, the rookies will showcase performances on the A2O Channel, either as solo acts or as units, the agency said.

Lee’s venture is reportedly subject to a three-year non-compete clause set by HYBE, which would mean his production activities are currently restricted to overseas projects.

The Korea Herald said this explains the significant presence of Chinese trainees in A2O’s lineup, while The Korea Times reported that A2O held auditions for trainees in China and Japan last June.

Reports indicate Lee attempted to negotiate the removal of this three-year restriction but was unsuccessful.

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K-pop giant SM Entertainment has reported its highest-ever quarterly earnings for Q3, bolstered by concerts and record sales.

The Seoul-based company, which is home to acts some of the world’s biggest K-pop acts, reported KRW 48 billion (€34m) in operating profit – a 77% surge year-on-year (YOY).

Revenue followed suit with a 40% YoY increase, soaring to KRW 188.7 bn (€133.9m), while net profit reached KRW 37.1 bn (€26.3m), jumping 68% YoY.

SM says increases across the board can be attributed to the rise in music and recording sales by NCT DREAM, aespa and RIIZE, as well as the increase in artist activities such as offline concerts.

The entertainment agency is also home to acts including Girls’ Generation, Super Junior, EXO, NCT and Red Velvet.

The Seoul-based company reported KRW 48 billion (€34m) in operating profit – a 77% surge year-on-year

SM has also revealed a consolidated operating profit of KRW 50.5 bn (€35.8m) for Q3, a staggering 70% YoY increase, as well as a revenue surge of KRW 266.3 bn (€188.9m), a 12% YoY increase. Both figures recorded the highest quarterly performance.

Meanwhile, net profit increased by 189% to KRW 84.2 bn (€59.7m), compared to KRW 29.2 bn (€20.7m) during the same period last year. Operating margin for Q3 recorded 19%, a YoY increase of 6.5%.

SM’s subsidiaries include live entertainment company Dream Maker, advertising, production, travel and talent company SM Culture & Contents, entertainment management agency Keyeast and music publishing subsidiary KMR.

Looking towards the future, SM CEO Cheol Hyuk JANG said: “We have a packed line-up of activities through the end of the year, from aespa, Red Velvet and Taeyeon to TVXQ’s 20th anniversary album and concerts. We are also planning on showcasing a strong lineup of artists and content in the coming year as well. Through our music publishing subsidiary KMR, we’ll actively seek out global songwriters, focus on securing a stable supply of high-quality songs and eventually secure a new stream of revenues for SM through royalties made from selling music to external labels and agencies.”

Earlier this year, internet company Kakao Corp became the second-largest shareholder in SM Entertainment.

SM says increases across the board can be attributed to, in part, to the increase in artist activities such as offline concerts

SM Entertainment says the capital raised through the deal will fund its new business strategy dubbed “SM 3.0” – establishing multiple production centres and labels as well as a music publishing-specialised subsidiary, and investing in the metaverse.

At the end of last year, the Seoul-based operation announced plans to launch a headquarters in Singapore, in order to strengthen its presence in Southeast Asia.

Months later, it was announced that SM and Kakao would launch an integrated division in North America.

The division will combine SM’s global intellectual property and production capabilities with Kakao’s music distribution network and multi-label system, “with the goal of firmly establishing itself as a global K-pop key player”.

The aim is to promote artists from both companies, including Kakao-owned Starship Entertainment’s girl group IVE, as well as SM’s girl group Aespa and boy band NCT.

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K-pop giant SM Entertainment and its biggest stakeholder Kakao Entertainment are launching an integrated division in North America.

The division will combine SM’s global intellectual property and production capabilities with Kakao’s music distribution network and multi-label system, “with the goal of firmly establishing itself as a global K-pop key player”.

The aim is to promote artists from both companies, including Kakao-owned Starship Entertainment’s girl group IVE, as well as SM’s girl group Aespa and boy band NCT.

“We will accelerate the global advancement and growth of Kakao Entertainment and SM Entertainment’s artists”

“Through the North American integrated corporation, we will accelerate the global advancement and growth of Kakao Entertainment and SM Entertainment’s artists, and based on this, we will expand the growth potential of Kakao Entertainment’s music business, which encompasses planning, production, and distribution of music and artist IP, to the global market,” says Kakao Entertainment America CEO Jang Yoon-jung.

Jang Yoon-jung will lead the new North American company. He will be in charge of Kakao’s global strategy officer and SM’s chief business officer.

Earlier this year Kakao became the largest shareholder in SM Entertainment after a months-long corporate battle against SM rival HYBE to take control of the K-Pop agency.

HYBE, the South Korean music agency behind BTS and Ariana Grande, is also looking to expand in the US to secure a global foothold. It was reported in June that the Seoul-based company is looking to raise around 500 billion Korean won (approx USD $380m).

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K-pop behemoth HYBE has abandoned its controversial move to take over rival SM Entertainment.

HYBE, which is home to acts including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen, says it has taken the decision due to the market “overheating”, amid competition with South Korean internet giant Kakao.

“HYBE assessed that the market situation had overheated due to competition with Kakao and Kakao Entertainment, which could negatively impact HYBE’s shareholders’ rights,” it says in a statement. “The two companies ― HYBE and Kakao ― also reached an agreement to seek cooperation on platform businesses.”

The Korea Times reports that Kakao will now work toward a controlling stake in SM and its management rights, while continuing to seek cooperation with HYBE on its platform business. Kakao offered SM shareholders 150,000 KRW (€108) per share, compared to HYBE’s previous offer of 120,000 KRW (€86) per share.

“Kakao and Kakao Entertainment respect HYBE’s decision to stop the move to acquire SM Entertainment”

“Kakao and Kakao Entertainment respect HYBE’s decision to stop the move to acquire SM Entertainment,” says a Kakao statement. “As a partner sharing mutually positive impacts, Kakao and Kakao Entertainment will continue various strategic cooperative relations with HYBE and SM Entertainment to help stoke the global status of K-pop and K-culture.”

Seoul-based SM Entertainment says that it “welcomes” HYBE’s decision to suspend its takeover bid. Last month, HYBE purchased a 14.8% stake in SM, in a move led by HYBE’s global team that involved acquiring former chief producer Lee Soo-Man’s shares in SM – days after the announcement of the SM 3.0 business strategy and development plan.

It pledged to buy another 25% stake in a separate notice, leading SM Entertainment CFO Cheol Hyuk Jang to release a video denouncing HYBE’s “hostile takeover”. Days earlier, SM had sold KRW 217.2 billion ($172.8m) shares – a 9.05% stake – to Kakao Corp.

In February Bloomberg reported that SM had seen its profits soar 70% thanks to the return of concerts and live events, posting an operating profit of 25.2 billion KRW (€18.3 million) in Q4 2022. Sales rose 18.2% to 256.4bn KRO, with its number of concerts in the three-month period up 35 times on the same quarter in the Covid-hit 2021.

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K-pop powerhouse SM Entertainment has seen its profits soar 70% thanks to the return of concerts and live events, as controversy grows over its “hostile takeover” by rival HYBE.

Bloomberg reports that Seoul-based SM posted an operating profit of 25.2 billion won (€18.3 million) in Q4 2022, with sales rising 18.2% to 256.4bn won. Its number of concerts in the three-month period was up 35 times on the same quarter in the Covid-hit 2021.

SM, which is home to acts such as BoA, TVXQ, Girls Generation, Shinee, EXO and Super Junior, says it expects profits from concerts and music operations will continue to grow in the first half of 2023, with boy band NCT Dream and pop duo TVXQ! holding more than 50 concerts.

NCT Dream recently completed a Japanese tour, including their first dome shows at Kyocera Dome Osaka, which pulled in 120,000 people over three days. The final show was transmitted through WOWOW, Japan’s largest satellite channel broadcaster, as well as live viewing, which broadcasts live performances at 140 movie theatres nationwide, and was also broadcast live on the global platform Beyond LIVE.

The band will tour Asia, Europe and the Americas from March, while girl group Aespa are also planning another 10 concerts in Japan in the first six months of the year.

“As soon as SM’s new vision ‘SM 3.0’ was announced, the largest shareholder sold his stake, and a hostile takeover attempt by a competitor started”

Earlier this month, HYBE became the largest shareholder in SM Entertainment with the purchase of KRW 422.8 billion shares — a 14.8% stake.

The move was led by HYBE’s global team and involved acquiring former chief producer Lee Soo-Man’s shares in SM days after the announcement of the SM 3.0 business strategy and development plan.

HYBE, which has pledged in a separate notice to buy another 25% stake, is home to acts including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen through its subsidiary labels, such as Big Hit Music, Pledis Entertainment, Source Music and ADOR.

However, over the weekend, SM Entertainment CFO Cheol Hyuk Jang released a video denouncing HYBE’s “hostile takeover”.

“As soon as SM’s new vision ‘SM 3.0’ was announced, the largest shareholder sold his stake, and a hostile takeover attempt by a competitor started,” he says, as per Koreaboo. “This is an attempt that ignores not only the fierce deliberation and efforts of the 600 SM employees who have dreamed of becoming the No.1 entertainment company in the world, but also the values and pride of SM that it has pursued together with the fans and artists.”

“HYBE is raising not only its own concert ticket prices but also those of the labels it has acquired, which illustrates the impact monopoly will have on the industry”

Jang also raised competition concerns over the acquisition, adding that it will lead to higher ticket prices for concerts.

“If HYBE takes the majority of the market share by acquiring SM’s managerial rights, K-pop would lose opportunities for a greater advancement forward,” he said. “Ultimately, K-pop fans will be the ones that will be most affected by the monopoly.

“SM puts reasonable prices to concert tickets to allow broader scope of fans to enjoy cultural performances. Meanwhile, HYBE has taken advantage of its position in the K-pop market to almost double the concert ticket prices as reported in the news several times recently. HYBE is raising not only its own concert ticket prices but also those of the labels it has acquired, which illustrates the impact monopoly will have on the industry.

“The consolidation of SM and HYBE will accelerate ticket price increase, adding burden to fans who love and support K-pop and K-pop artists. The concert ticket price hike is just one example. The monopoly created as a result of HYBE’s hostile acquisition of SM will cause more diverse and direct problems, including decreased diversity of artists, music and concerts.”

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K-pop behemoth HYBE has become the largest shareholder in SM Entertainment, the rival South Korean company thought to have kickstarted the wave of popularity around Korean pop culture.

The purchase of KRW 422.8 billion shares — a 14.8% stake — was reported today (10 February) and helps strengthen HYBE’s position as a leader in K-pop. Reportedly, the company pledged in a separate notice to buy another 25% stake.

Through its subsidiary labels, such as Big Hit Music, Pledis Entertainment, Source Music and ADOR, HYBE is home to K-pop acts including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen.

The SM move was led by HYBE’s global team, which includes chairman Bang Si-Hyuk, CEO Park Jiwon and Braun and involves acquiring former chief producer Lee Soo-Man’s shares in SM Entertainment. In October 2022, SM announced that it terminated a contract with Lee Soo-Man a year early.

Seoul-headquartered SM is home to such acts as aespa, BoA, TVXQ, Girls Generation, Shinee, EXO, Super Junior and NCT 127.

The deal is targeted at “raising its competitiveness in the K-pop industry and producing a synergy effect,” Hybe said in its filing.

Shares of SM Entertainment today soared, rising more than 16% at the open in Seoul, while HYBE rose 6%

Shares of SM Entertainment today soared, rising more than 16% at the open in Seoul, while HYBE rose 6%, JYP Entertainment rose 2.5% and YG Entertainment gained 3.8%.

Today’s blockbuster announcement comes at the end of a busy week of business for both HYBE and SM.

On Tuesday (7 February), SM Entertainment sold KRW 217.2 billion ($172.8m) shares – 9.05% stake – to South Korean internet company Kakao Corp.

The following day (8 February), HYBE America announced it had acquired Quality Control (QC Media Holdings, Inc.).

The Atlanta-based entertainment company covers music (Lil Baby, Lil Yachty, City Girls and Migos are among its signings), sports, film and television founded in 2013 by CEO Pierre “P” Thomas and COO Kevin “Coach K” Lee. The deal, valued at $320 million in stock and cash, was led by HYBE America CEO Scooter Braun.

The rise and rise of K-pop will be discussed at the forthcoming International Live Music Conference (ILMC), taking place at the Royal Lancaster Hotel in London, between 28 February to 3 March.

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South Korean internet company Kakao Corp is to buy a 9.05% stake in K-pop behemoth SM Entertainment for a reported 217.2 billion won ($172.8m).

The deal will see Kakao Corp become the second largest shareholder in the entertainment agency, home to acts including Girls’ Generation, Super Junior, EXO, NCT and Red Velvet.

The two companies will team up to pursue joint management projects together including global K-pop auditions, management and music distribution businesses, according to Reuters.

“We hope to work together in competing in the heavily contested global music and content market through this investment”

“We hope to work together in competing in the heavily contested global music and content market through this investment,” says Kakao Chief Investment Officer Bae Jae-hyun.

SM Entertainment says the capital raised through the deal will fund its new business strategy dubbed “SM 3.0” – establishing multiple production centres and labels as well as a music publishing-specialised subsidiary, and investing in the metaverse.

At the end of last year, the Seoul-based operation announced plans to launch a headquarters in Singapore, in order to strengthen its presence in Southeast Asia.

The SM boss also revealed ambitions to slowly expand not just to other parts of Southeast Asia, but also to the wider continent, including the Middle East.

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