There may be lots of consolidation happening amongst the giants of the Okay-Pop trade.
Earlier this week, we realized that South Korea-based Kakao Corp had acquired a 9.05% stake in Okay-Pop firm SM Leisure, which is behind stars like NCT, EXO and Aespa.
According to Reuters, Kakao is shopping for its stake in SM Leisure in a deal price 217.2 billion gained ($172.8 million).
Now, one other big of the Okay-Pop world, HYBE, the corporate behind superstars BTS, can also be taking a stake in SM Leisure.
HYBE is shopping for a 14.8% stake within the firm from SM Leisure founder Lee Soo Man, in a deal price 422.8 billion South Korean gained (approx. $334.5 million).
Lee Soo Man was the corporate’s largest shareholder previous to the deal, with an 18.46% stake.
At the moment’s information arrives in the identical week that HYBE America, led by Scooter Braun, agreed to acquire Atlanta rap powerhouse QC Media Holdings or Quality Control, residence to acts equivalent to Lil Child, Migos, Lil Yachty and Metropolis Women.
The corporate didn’t disclose the scale of the acquisition, however Selection reported that the deal is valued at $320 million in inventory and money, which means that globally, HYBE has spent over $600 million in only one week.
Kakao’s acquisition of 9.05% of SM Leisure earlier this week made it SM’s second-largest shareholder, which means that HYBE, with a 14.8% stake within the firm, is now SM Leisure’s largest shareholder. HYBE additionally reportedly plans to amass extra shares from minority traders to up its stake in SM Leisure.
The change within the share possession of the corporate comes amidst reported tension between SM Leisure’s administration and founder Lee Soo Man, who deliberate to file a lawsuit in opposition to the corporate earlier this week following the Kakao deal.
Reuters reports that HYBE’s funding within the firm by way of the acquisition of shares from Lee Soo Man has been criticized by SM Leisure’s management.
SM mentioned in an announcement that it “oppose[s] all aggressive outdoors mergers and acquisitions together with HYBE”.
HYBE Chairman Bang Si-Hyuk mentioned in an announcement that his firm “totally agree[s] with [SM Entertainment founder] Lee’s strategic initiatives together with metaverse, a multi-label system, and the sustainable imaginative and prescient marketing campaign”.
Lee Soo Man, founder and Chief Producer of Okay-Pop big SM Leisure, delivered a speech at Stanford College in Might final 12 months outlining his imaginative and prescient for Okay-Pop.
His imaginative and prescient includes the SM Culture Universe (SMCU), a character-led universe akin to cinematic multiverses like these created by comedian giants Marvel or D.C., is on the centre of SM’s content material technique.
This week, SM Leisure introduced a brand new development technique, dubbed SM 3.0, which is able to contain establishing 5 new manufacturing hubs and a number of other music labels at residence and abroad. The plan is geared toward systematizing the manufacturing course of for artists.
The transfer was unveiled by co-chief government officers, Lee Sung Soo and Tak Younger Jun, in a video uploaded on YouTube on Friday (February 3) .
The SM 3.0 technique is seen as an try to cut back the corporate’s inventive dependence on Lee Soo-man.
In October 2022, SM additionally reduce ties with a personal firm owned by Lee referred to as Like Planning over considerations in regards to the company paying billions of South Korean gained yearly to the agency.
SM posted a 65.4% year-over-year income rise in Q3 2023, to 238.1 billion South Korea gained (USD $189.9m), pushed by a 76.1% improve within the income of its ‘MD/Licensing’ enterprise unit.Music Enterprise Worldwide
