HYBE Will Reportedly Pocket $87M Profit From The Sale Of Its SM Entertainment Shares
After its highly publicized battle for SM Entertainment, it seems HYBE has emerged with an impressive silver lining. In a new interview with chairman Bang Si Hyuk, Billboard revealed just how much money HYBE stands to gain from selling its shares.
In February, HYBE and SM Entertainment appeared to be on the verge of a groundbreaking merger. Lee Soo Man, the founder of SM Entertainment, offered to sell most of his 15% stake to HYBE, sparking a fierce competition for control over one of Korea’s largest entertainment companies.
The acquisition process unfolded with fans and industry insiders watching closely. However, HYBE ultimately withdrew from the acquisition on March 12, allowing Kakao M to secure its position as SM Entertainment’s largest shareholder. Later that month, HYBE announced it would be selling its 14.8% stake in the company.
HYBE originally purchased the shares for 422.8 billion KRW, but the company won’t just be breaking even. With the acquisition drama behind them, HYBE is actually set to pocket an eye-popping profit of $87 million USD, according to Billboard.
Reflecting on the events, HYBE’s chairman, Bang Si Hyuk, expressed a sense of satisfaction despite the challenges faced.
At this point, I’m quite satisfied with the result.
— Band Si Hyuk
Despite its eventual success, Bang shared that there were many people close to him that opposed the acquisition. The chairman revealed that burdened by the pros and cons of the deal, he went to his mentors for advice, and the reactions weren’t exactly positive.
To be honest, they opposed the idea.
— Bang Si Hyuk
He was also navigating choppy waters within his own company. Bang shared that, in addition to his mentors and role models, opposition to the deal was coming from within HYBE. Despite this, Bang Si Hyuk persisted in his pursuit, weighing the pros and cons of the deal and pressing on.
I personally tend not to attach too much emotion to business affairs, but there was quite a bit of backlash coming from inside our company, so that was the more challenging part for me.
— Bang Si Hyuk
However, on top of the $87 million USD profit, the partnership between the two companies hasn’t completely dissolved. With SM Entertainment artists set to move their fan clubs from KWANGYA CLUB to HYBE’s Weverse in the near future, it remains to be seen how the agencies will work with each other going forward.