BTS’s Agency Jumps Into Battle Between Kakao, Godfather of K-pop
- Hybe aiding SM founder Lee to block Kakao’s purchase of shares
- Hybe offering 22% premium for SM, activist says price too low
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Hybe Co., manager of the South Korean sensation BTS, is jumping into the middle of a messy corporate battle, allying with the godfather of K-pop to hinder technology giant Kakao Corp.’s foray into the entertainment arena.
Hybe launched a hostile bid for shares of SM Entertainment Co., coming to the aid of founder Lee Soo-man as he fights to block SM’s current management’s deal with Kakao, operator of Korea’s most popular messaging and social media service. That 217 billion won proposal — backed by activist shareholder Align Partners Capital Management — would have made Kakao the second-biggest shareholder in SM and diluted Lee’s control over the company.