Seoul/Hong Kong (CNN) HYBE, the governing body Behind the Superstar Boy Band BTSWill become the largest shareholder of its K-pop rival SM Entertainment.
The South Korean entertainment giant announced the deal on Friday, in which HYBE will acquire a 14.8 percent stake in SM Entertainment for 422.8 billion won ($334.5 million).
SM was founded by legendary music producer Lee Soo Man, widely known in South Korea as the “Godfather of K-pop”. The agency is known for representing popular artists such as NCT 127, EXO, BoA and Girls’ Generation.
NCT 127 at a press conference in Seoul, September 2022.
News of the two companies joining forces inspired investors. Shares of SM Entertainment soared 14.1 percent in Seoul on Friday, while shares of HYBE rose 6.4 percent.
HYBE said in a statement: “This acquisition is an important step for HYBE to combine the global expertise of both companies to become a game changer for the global music industry.”
HYBE has been taking steps to expand its global reach.thursday it Announce Another major deal in the US said it would buy the owner of Quality Control, a hip-hop label that represents popular artists including Migos and Lil Yachty.