top of page

K-Pop Deals: HYBE sells entire stake in SM Entertainment to Tencent Music

  • Writer: finminati
    finminati
  • May 31
  • 2 min read

Updated: Jun 28

31 May 2025, Saturday


HYBE sells stake in SM to Tencent Music.
Image credits: allkpop
Image credits: ALLKPOP

HYBE Corporation sold 9.66% stake (worth $178 Mn approx.) in SM Entertainment to Tencent Music. 


This major deal is expected to re-shape the K-Pop landscape and strengthen the influence of Tencent, a Chinese company, in K-Pop.



History between HYBE and SM Entertainment


HYBE and SM Entertainment are both among the biggest and most successful entertainment agencies in Korea, with some of the biggest K-Pop artists signed under them.


Some of the artists under HYBE include BTS, Seventeen and Le Serrafim, etc.; while some artists under SM include EXO, NCT and Aespa.


HYBE is a big K-Pop powerhouse that has multiple agencies under it including BigHit, Pledis, Source Music etc.


Back in early 2023, HYBE wanted to add SM to its ever-growing list of associated agencies


Hence it acquired 14.8% stake in SM, from SM’s founder Lee Soo Man, in hopes to gain managerial rights in SM. This was followed by an intense corporate battle between HYBE and Kakao to buy more shares via public tender offers.


Finally, HYBE stepped back and began offloading its shares. A portion was sold to Kakao earlier, and the rest is now being handed to Tencent.



Why is HYBE exiting now?


HYBE wants to focus on its core business / assets like investing in new talent, expanding its global reach and of course, planning for the return of BTS, post completion of their military service.



Impact of the Deal on SM

This deal makes Tencent the 2nd largest shareholder with 9.66% stake in SM after Kakao. Currently, Kakao holds a 42% controlling stake in SM.


This deal could lead to an increase in K-Pop presence in China and perhaps (re-)open avenues for K-Pop performances in China.


News Sources / References:

Image Credits:


DISCLAIMER

The content is for educational / informational purposes only, and readers should not rely on it for professional advice or take it as a definitive source of truth. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.

The securities / investments quoted here are not recommendatory. It is not to be used or considered as financial or investment advice, a recommendation, an offer to sell, or a solicitation to buy any securities or other financial assets. Any similarity / overlap between the securities, stocks, or assets mentioned in the blog post / website / social media handles and those personally owned is purely coincidental, meaning it is not intentional or planned. All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. We advise investors to check with certified experts before making any investment decisions.

This post might contain links to external websites that are not provided or maintained by or in any way affiliated with the website / blog.



Comentários

Avaliado com 0 de 5 estrelas.
Ainda sem avaliações

Adicione uma avaliação
Finminati Logo

FINMINATI

  • Youtube
  • Instagram
  • Twitter
  • Facebook
  • LinkedIn
bottom of page