Deals
Kakao Offers to Buy 35% of K-Pop Label SM to Fend Off Rival Hybe
- Kakao’s bid of 150,000 won a share is much higher than Hybe’s
- Shares surged to nearly Kakao’s tender offer price on Tuesday
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Kakao Corp., South Korea’s internet giant, launched a tender offer to become the largest shareholder of SM Entertainment Co., boosting the shares to a new high in an escalating battle for control of the K-pop label with entertainment powerhouse Hybe Co.
Kakao and its entertainment unit, Kakao Entertainment Corp., are offering to buy up to a 35% stake in SM for 150,000 won per share, with the total value of the offer about 1.25 trillion won ($960 million). The duo currently hold about 4.9% of SM shares and the tender offer could take that to almost 40%.