K-pop’s battle for corporate supremacy has become a never-ending drama.
After a fierce battle for control between the BTS-backed Hyb Corporation. And tech giant Kakao’s takeover of SM Entertainment, Korea’s financial regulators are investigating the deal that ultimately led to Kakao’s victory.
The Korean Financial Supervisory Service raided SM Entertainment’s offices on Tuesday, Yonhap news agency reported. When the parties clashed, investigators were looking for evidence of stock price manipulation between February and March.
Earlier this month, the FSS raided Kakao and Kakao Entertainment following a petition from Hib.
Hyebe bought a 14.8% stake in SM Entertainment, the company behind K-pop groups such as EXO, Aespa and NCT, from founder Lee Sammen. However, SM Entertainment Management disagreed with the rival agency’s decision and asked Kakao for support.
As a defense, SM Entertainment announced the issuance of Kakao shares and convertible shares. He was taken into custody by court order. In an apparent offer to existing shareholders, Hib attempted to buy more shares of SM Entertainment in the open market. But with funding from Saudi Arabia, Kakao came back with a massive 40% stake in the company – a move that looked like a coup.
Although the fighting has stopped, there are signs that a new normal is emerging.
On Monday, the creators of Hib Fandom Life platform announced that SM Entertainment solo and group artists will join the platform and launch their official community in September 2023, which will separate them from SM Entertainment’s existing fan community platform Kwanya Club. .
The partnership with Wavers was a deal negotiated between SM Entertainment, Kakao and Hib, with Hib agreeing to accept Kakao’s premium stock offer. The company, which is partially responsible for BTS distribution, distributes fan chat and media content, a business platform where fans can purchase official albums and artist merchandise. According to Hibb, Weavers is now available in 245 countries and territories and has approximately 65 million subscribers.
There is a sharp rise in the stock market after the ceasefire in Haifa. Shares of the stock rose 37 percent to 251,000 KRW last month. According to Korean Financial Media, institutional and foreign investors are the buyers of the stock sale.
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