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HYBE sells entire stake in SM Entertainment
South Korean entertainment powerhouse HYBE has sold its entire 9.38% stake in rival K-pop firm SM Entertainment to Tencent Music Entertainment (TME), China’s leading music streaming company.
The deal, worth 243.35 billion South Korean won ($177 million), involves 2.21 million shares and was disclosed in a regulatory filing on Tuesday (May 27).
TME, which operates platforms including QQ Music, Kugou Music, Kuwo Music, and WeSing, acquired the shares at 110,000 won ($80) per share. The transaction will be executed via after-hours block trading after the market closes on May 30, 2025.
HYBE said the divestment is part of its “choice and concentration strategy” aimed at streamlining non-core assets. The company plans to use the proceeds to “secure future growth engines.”
SM Entertainment, home to K-pop superstars such as EXO, Girls’ Generation, NCT, and aespa, responded by announcing plans to deepen ties with TME.
This move marks a significant shift following HYBE`s unsuccessful 2023 takeover bid for SM. With this latest transaction, TME becomes SM’s second-largest shareholder, while Kakao and its entertainment subsidiary remain the largest private stakeholders with a combined 40.28% ownership.
Pictured: K-pop group Red Velvet