ISLAMABAD/SEOL: HYBE, the management agency behind superstar South Korean music band BTS, will become the biggest shareholder of its rival company SM Entertainment.
The move strengthens HYBE’s dominance in the country’s music industry, which is already the biggest agency, even as it tries to expand abroad.
The South Korean entertainment giants announced the agreement on Friday, with HYBE set to pick up a 14.8 percent stake in SM Entertainment for $334.5 million.
Legendary producer Lee Soo-man founded SM, widely referred to in the country as the godfather of K-pop. The agency is known for representing hit artists, such as EXO, NCT 127, Girls’ Generation and, BoA.
News that the 2 companies were joining forces fired up investors. SM Entertainment’s shares soared 15 percent in Seoul on Friday, while HYBE’s stock rose 3 percent.
Besides BTS, HYBE also represents popular bands such as Tomorrow x Together, NewJeans, and Seventeen.
BTS members on compulsory military service
But its marquee act is currently on pause. BTS members started individual compulsory military service in South Korea in late 2022, with the group as a whole is likely to reconvene around 2025.
Therefore, HYBE is turning its focus elsewhere. The company said in a statement that the acquisition represents a significant step by HYBE to integrate the global expertise of two companies to become a game-changer agency in the global music industry.
