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SEOUL, March 12 (Reuters) – HYBE Co Ltd (352820.KS)The agency representing South Korea’s best-selling boy group BTS has dropped plans to take control of K-pop pioneer SM Entertainment Co Ltd (041510.KQ)the company said on Sunday.
HYBE’s exit is over The weeks-long takeover battle with social media giant Kakao Corp (035720.KS)and will allow Kakao to further expand its entertainment business.
HYBE said it decided to stop the tender offer as the price to acquire SM was unreasonable as competition intensified.
cocoa last week roll out 1.25 trillion won ($946.8 million) for up to 35% of SM Entertainment at 150,000 won per share, well above HYBE’s 120,000 won per share offer for 25% stake, which drew little attention from shareholders .
Shares of SM Entertainment closed at 147,800 won on Friday.
HYBE said that after meeting with Kakao, the two companies agreed to cooperate on matters related to their platform.
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Lee Jong-lim, a Seoul-based cultural critic, said the acquisition of SM was the latest in a series of efforts Kakao has made in recent years to expand its content and entertainment division.
In 2021, Kakao Corp acquired several content companies, including video game developer NFLY STUDIO.
Kakao Entertainment, a subsidiary of Kakao, also invested 12 billion won in Metaverse Entertainment, which operates a virtual idol group.
Kakao and SM Entertainment said they welcomed HYBE’s decision to drop the bid.
“Kakao and Kakao Entertainment will continue the tender offer until the 26th to secure more shares and study the details of the business cooperation between HYBE and SM,” Kakao said in a statement.
($1 = 1,320.2400 won)
Reporting by Ju-min Park and Hyunsu Yim; Editing by William Mallard and Jamie Freed
Our standards: Thomson Reuters Trust Principles.
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