In a significant development within the Korean entertainment industry, Lee Soo Man, the founder of SM Entertainment, has finalized the sale of his remaining 868,948 shares to HYBE Corporation. This strategic move not only marks the end of Lee Soo Man’s ownership in SM Entertainment but also signifies a noteworthy collaboration between two major players in the K-pop scene.
HYBE Corporation, formerly known as Big Hit Entertainment, confirmed the acquisition of 868,948 shares from Lee Soo Man, valued at ₩104 billion KRW (approximately $78.1 million USD). This transaction represents a 3.68% stake in SM Entertainment, solidifying HYBE’s position as a significant shareholder in the company.
The acquisition price for each share was ₩120,000 KRW (about $89.90 USD), indicating a premium of approximately 50% compared to the previous closing price of ₩79,000 KRW (approximately $59.20 USD). This heightened valuation underscores the strategic importance of the investment for HYBE and signals confidence in the future prospects of SM Entertainment.
With this latest acquisition, HYBE’s ownership in SM Entertainment now stands at 12.6%, a move that further cements their presence in the ever-expanding K-pop landscape. The synergies between the two entertainment giants are expected to bring about new collaborative opportunities, potentially reshaping the dynamics of the industry.
The expected acquisition date for HYBE’s new stock in SM Entertainment is set for March 7, marking the commencement of a new chapter in the relationship between the two influential companies. Fans and industry observers alike are keenly watching to see how this collaboration will unfold and what impact it may have on the trajectory of both HYBE and SM Entertainment.
Lee Soo Man’s decision to divest his remaining shares in SM Entertainment is seen as a strategic move that aligns with the evolving landscape of the entertainment business. The sale not only provides financial liquidity for Lee Soo Man but also allows HYBE to strengthen its foothold in the industry, leveraging the diverse talent and resources within both companies.
As the K-pop industry continues to expand globally, strategic collaborations and investments play a crucial role in shaping its future. The union of Lee Soo Man and HYBE signifies a powerful alliance that has the potential to drive innovation, create new opportunities, and set new benchmarks in the dynamic world of K-pop.
