HYBE gives up and withdraws from SM Entertainment’s takeover battle against Soompi
HYBE will not buy SM Entertainment, that’s official now.
On March 7th, we learned that HYBE’s bid for new shares in SM Entertainment had failed and the company only received an additional 0.98% instead of HYBE’s expected 25%.
Subsequently, Kakao had announced its intention to become the controlling shareholder of SM Entertainment and double HYBE.
With a 20% higher bid than HYBE and the highest price per share in SM Entertainment, Kakao’s bid was very attractive given that SM backed Kakao’s takeover.
Two days ago it was rumored that an agreement had been reached between Kakao and HYBE to end the fight over SM Entertainment, but today we learned that HYBE is simply pulling out.
HYBE has indeed made the decision to retire and give up fighting for SM Entertainment.
According to the agency “This decision was made after observing that the market was showing signs of overheating in competition with Kakao and Kakao Entertainment. HYBE considered the possibility of this acquisition and its offer could hurt HYBE’s shareholder value and overheat the market. »
According to HYBE, however, cocoa and HYBE “collaborate on platform-related matters. »