Is HYBE going to be SM Founder Lee Soo Man's "white knight"? According to the investment banking (IB) industry, joint management between Bang Si Hyuk and LSM might happen if THIS will be pursued.
HYBE Makes Tender Offers To Acquire Stake in SM Entertainment For 120k KRW Per Share
Since 2020, HYBE, home to BTS and NewJeans, has been steadily reported to be making offers to acquire major shares in SM Entertainment. At the time, it was rumored that Lee Soo Man declined the offer, but the IB industry's report on February 8 states otherwise.
On this day, it was reported by insiders that HYBE has been making a tender offer to acquire SM Entertainment's biggest shares until Kakao entered the scene.
According to reports, HYBE has already hired a large domestic securities company that is in charge of the consultation and arranging acquisition financing. It was said that the tender offer price ranges from 110k to 120k (87 to 95 USD) per share.
HYBE X Lee Soo Man Joint Management Might Happen If This Pushes Through
The IB industry then predicted that if the offer will become successful, HYBE will become the largest shareholder. Next to Bang Si Hyuk will be Lee Soo Man as the second largest shareholder, and joint management could take place to control SM Entertainment.
But upon hearing this, the current management of SM Entertainment led by CEOs Lee Sung Soo and Tak Young Joon held an emergency board meeting on Feb. 7 and announced that they made a deal with Kakao to acquire a 9.05% stake in SM for $173M.
Amid the infighting issue between Lee Soo Man, the CEOs, staff and artists, the market believes that the current management did this to prevent LSM from persuading the minority shareholders to side with him.
If looking from LSM's point of view, if he will opt to transfer his stake to a strategic investor (SI) whose main goal is to further grow the company, this will not be impossible. At the same time, Lee can also remain the second largest shareholder and manage his artists.
However, this report will apparently stay as a rumor after HYBE's side clarified that they didn't receive any official regarding this.
Also, if the acquisition will be successful, it will not be easy for Bang Si Hyuk to immediately earn the management rights. After all, the company is still comprised of its current board of directors.
K-pop Fans Express Divided Opinions About Rumored HYBE X Lee Soo Man Joint Management
Amid the rumor, K-pop fans of the artists under both companies were not as happy as others following this.
HYBE fans are stating that the company shouldn't interfere and just focus on its current subsidiaries and businesses. Some also showed disappointment in Bang Si Hyuk for being "greedy" in trying to monopolize the music scene by acquiring the largest shares in one of the biggest and oldest K-pop agencies, SM Entertainment.
SM fans also showed frustration if this will happen, as the possible tandem might also affect its artists' activities once HYBE earned the management rights for SM.
ALSO READ: Leaked Email Exposes 'Infighting' Between Lee Soo Man, Artists, SM CEOs & Staff
For more K-Pop news and updates, keep your tabs open here at KpopStarz.
KpopStarz owns this article.
Written by Eunice Dawson.
