Kakao Corp., and Kakao Entertainment Corp. completed the acquisition of a 35% stake in SM Entertainment Co., Ltd. from Com2uS Corporation, HYBE Co., Ltd. and others.
March 25, 2023
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Kakao Corp. (KOSE:A035720), and Kakao Entertainment Corp. made an offer to acquire a 35% stake in SM Entertainment Co., Ltd. (KOSDAQ:A041510) from Com2uS Corporation (KOSDAQ:A078340), HYBE Co., Ltd. (KOSE:A352820) and others for approximately KRW 1250 billion on March 7, 2023. As per the terms, the offer price per share is KRW 150,000. Kakao will purchase maximum of 8,333,641 shares. The tender offer will end on March 26, 2023. Hybe said on March 12, 2023 that it has decided to halt its bid to take over industry giant SM Entertainment in an agreement with Kakao Corp. The tech giant Kakao and its entertainment unit, Kakao Entertainment Corp., will have management control over SM Entertainment, while Hybe will cooperate with Kakao in the platform business.
Kakao Corp. (KOSE:A035720), and Kakao Entertainment Corp. completed the acquisition of a 35% stake in SM Entertainment Co., Ltd. (KOSDAQ:A041510) from Com2uS Corporation (KOSDAQ:A078340), HYBE Co., Ltd. (KOSE:A352820) and others on March 26, 2023. South Korea's antitrust regulator has launched a review on the transaction.
Hybe Co Ltd, formerly Big Hit Entertainment Co Ltd, is a Korea-based company mainly engaged in the business of fostering artists and producing music. The Company is engaged in businesses such as fostering artists, producing music, planning and acting on behalf of performances, distribution of albums and sound sources, production and distribution of video contents, and advertising agency. The Company is also engaged in the development and distribution of artist-based secondary contents such as merchandising (MD), characters, and publications. In addition, the Company also engaged in the software publishing business, food and drink products manufacturing business, and others. The Company sells products in domestic and overseas markets such as the United States and Japan.
Kakao Corp., and Kakao Entertainment Corp. completed the acquisition of a 35% stake in SM Entertainment Co., Ltd. from Com2uS Corporation, HYBE Co., Ltd. and others.