Kakao becomes the majority shareholder of SM Entertainment Soompi with a 35% stake
Indeed, Kakao will take the seat of SM Entertainment’s central shareholder.
On March 12th, we learned that HYBE was withdrawing from the SM Entertainment buyout battle.
As a result, Kakao stated that the company would grant autonomy and independence to SM without interfering with the agency. Rather, this statement proved that Kakao would thereby become the controlling shareholder of SM Entertainment.
In fact, the media is reporting today that Kakao will buy SM Entertainment, becoming the agency’s majority shareholder thanks to its 35% of the purchased shares his offer a few days ago.
With an offer of 150,000 won per share (the highest amount for a share at SM), Kakao has actually managed to retain its 35%, according to the media, giving Kakao the most important position as a decision shareholder.
As for HYBE, the company will only develop a joint platform with SM Entertainment as agency, but nothing more.
Members of Kakao, in accordance with SM Entertainment’s policies and endorsed by SM, will join the agency’s Board of Directors to assist in the administration of the agency. On the contrary, no HYBE members will be appointed to the board of directors, thereby depriving HYBE of any decision-making authority within SM Entertainment.
Kakao will officially receive its 35% stake before March 26th.