SM Plunges After Bidding War Over K-Pop’s Future Ends
- Hybe and Kakao’s battle for SM almost doubled its stock price
- BTS label’s withdrawal clears path for SM’s tieup with Kakao
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SM Entertainment Co. plunged after BTS label Hybe Co. said it would back down from a battle over the smaller K-pop agency, ending a bidding war with internet giant Kakao Corp. that had embroiled some of the biggest names in Korean entertainment.
SM shares fell as much as 22% during Monday morning trade, to below Kakao’s tender offer price of 150,000 won. Hybe and Kakao both rallied by more than 7%, before paring gains. Shares of both were up around 2%. Smaller entertainment rivals also dropped.