HYBE has become the single largest shareholder in SM by completing the acquisition of 14.8 percent of stoke on Wednesday, February 22.
The firm released an open letter to the fans, artists, employees, and shareholders of SM Entertainment, sharing the acquisition details.
In the open letter, HYBE CEO Jiwon Park said the company resolved the governance issue between SM and former Chief Producer Lee Soo Man. SM will become a company with a transparent governance structure that prioritizes shareholder values.
Park shared more details about the similarities between both companies' corporate philosophies. He also shared the synergy they can collaborate to create in the upcoming future.
HYBE bought 3,523,420 common stokes of SM Entertainment's largest shareholder Lee Soo Man for 422.8 billion won ($334 million) on February 9 and became the largest shareholder in SM. It is planning to share Dream Maker Entertainment and SM Brand Marketing Co.
SM엔터테인먼트의 팬, 아티스트, 구성원 및 주주 여러분께 드리는 메시지 pic.twitter.com/YHOOWKD9Yt
— HYBE OFFICIAL (@HYBEOFFICIALtwt) February 22, 2023
OPEN LETTER TO FANS, ARTISTS, EMPLOYEES, AND SHAREHOLDERS OF SM ENTERTAINMENT pic.twitter.com/CsxqAmopFy
— HYBE OFFICIAL (@HYBEOFFICIALtwt) February 22, 2023
At the same time, Indian fans were surprised to see the name of their country as one the leading markets that the corporation talked about. While it is no secret that K-pop has become a frontrunner in music consumption in India, it is imperative to note that not a lot of attention has been paid to the South Asian country by the K-pop management labels, failing to recognise its massive potential so far.
The lack of K-pop album availability, major promotions, merchandise stores and the massive hurdles presented by international shipping, have become the primary source of dissuasion that the desi fans have been subjected to over the many years. And while the interest is slowly getting recognised ensuring projects like Jackson Wang’s visit to Lollapalooza India, Sriya Lenka and team BLACKSWAN’s invite to the 2023 Men's FIH Hockey World Cup and more see the light of the day, it is nowhere close to what the Indian audience hopes to see.
Will HYBE’s acquisition of Lee Soo Man’s shares of SM Entertainment change the K-pop scene in India? We can only wait and watch.