The power players of the K-pop world just made another big move. Entertainment giant HYBE has doubled down on their investment in industry rival SM Entertainment, announcing the purchase of founder Lee Soo Man’s remaining shares.
In a regulatory filing, HYBE disclosed plans to buy 869,948 shares of SM stock worth a reported 104.3 billion won (around $78 million USD). This 3.64% stake was previously owned by SM’s iconic founder and former Chief Producer Lee Soo Man. According to industry sources, HYBE is paying the predetermined price of 120,000 won per share.
The sale marks Lee Soo Man’s full exit from the company he launched over 30 years ago. Under his visionary leadership, SM became a juggernaut known for breaking K-pop acts globally like BoA, TVXQ, Super Junior, Shinee, Exo, Red Velvet and more. Now with this transaction, the innovative founder passes the torch while cashing out his final shares.
This new purchase will boost HYBE’s total stake in SM to a substantial 12.6%. It’s an intriguing move coming exactly one year after HYBE first got involved, spending $335 million for a 14.8% slice of the company. Sources say the latest buyout honors stock rights included in that original deal.
So what’s behind HYBE doubling down on their investment now? Some see it as strengthening ties between the two industry heavyweights, while others argue it could position HYBE for more influence over SM’s operations down the line. Either way, it marks a significant power shift as the companies increasingly converge in the cutthroat world of K-pop.
