HYBE will “ensure” SM Entertainment’s independence, CEO reportedly says
nme.comHYBE, which is moving to become the largest shareholder in SM Entertainment, has reportedly said the latter label will be able to retain its independence.Last week, HYBE announced that it had struck a deal to buy 3.5million shares in SM Entertainment from its founder Lee Soo-man and therefore acquire a 14.8 per cent stake in the agency, which is one of K-pop’s longtime “Big Three” labels alongside JYP Entertainment and YG Entertainment.
The deal, once finalised on March 6, will make HYBE the largest shareholder in rival label SM.HYBE has also offered to purchase another 25 per cent of SM from minority shareholders.
However, SM’s top executives, including its co-CEOs, have stated their opposition to any “hostile takeover from outsiders, including HYBE”.At a briefing session held for HYBE employees on Monday (February 13), CEO Park Ji-won reportedly shared that SM Entertainment would be able to retain its independence following its acquisition by HYBE.“We respect SM’s legacy.
We’ll ensure SM’s independence… HYBE has already proved the value of its multi-label system,” Park said, as reported by Yonhap News Agency.There are several labels currently operating under HYBE, including Big Hit Music, Pledis Entertainment and Source Music, the latter two of which were acquired by HYBE.
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