South Korean Internet giant Kakao won a controlling stake in SM Entertainment after an intense bidding war with Hybe, the label behind BTS.Internet giant Kakao won a controlling stake in SM after an intense bidding war with Hybe, the label behind hit boy group BTS. Financial regulators accused the executive, along with two others working at Kakao and Kakao Entertainment, of buying 240 billion won in shares of SM in an attempt to disrupt Hybe’s tender.
Both Kakao and Hybe had seen ownership of SM as a way to reach a broader audience and to drive South Korean entertainment acts into the mainstream, and their bidding war sent SM’s stock price to a record.The lawyer representing Kakao executives, who previously said the purchase of SM shares was a legitimate market transaction, was not immediately available for comment. Kakao officials were not immediately available for comment.
Kakao shares fell around 2 per cent in morning trade, down around 23 per cent from the start of 2023. Shares of SM were down over 2 per cent, but still up 54 per cent so far this year. BLOOMBERGRead nowSubscribe now