HYBE Discontinues Acquisition Process of SM Entertainment After Coming to Agreement with Kakao

HYBE Labels and Kakao have finally come to an agreement regarding their battle for management rights and control of SM Entertainment. HYBE and Kakao have now also agreed to "cooperate on platform-related matters" in the future.

Earlier HYBE had signed a deal with SM founder Lee Soo Man to acquire a 14.8 percent stake in the company, making them the largest shareholder. This came after Kakao's attempt to purchase a 9.05 percent stake in SM Entertainment by buying newly issues shares and convertible bonds which Lee Soo Man said was illegal. He took Kakao to court and request for an injunction was granted. Bang Si Hyuk Says It Was Not His ‘Personal Vision to Acquire SM Entertainment’ but Needed to Think About Things from a Perspective of the Company.

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