K-Pop Giant SM’s Profit Beats as Talk of Bidding War Mounts
- SM Entertainment’s profit up 70% as crowds return to concerts
- SM board says it opposes bigger rival Hybe’s takeover attempt
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SM Entertainment Co.’s profit soared 70% thanks to a resumption of overseas concerts and live events, underscoring the K-pop agency’s value as it tries to fight a hostile bid from rival and BTS label Hybe Co.
The K-pop pioneer has been at the center of a takeover battle that has embroiled the biggest names in Korean entertainment. It began with the ouster of founder Lee Soo-man in a boardroom coup last month. After internet giant Kakao Corp. attempted to buy a 9% stake in SM, Lee retaliated by selling his 14.8% stake to Hybe. Hybe, which also manages NewJeans and Tomorrow X Together, also launched a tender offer to buy as much as 25% of shares from investors.