Recent industry rumors suggest HYBE Labels, the powerhouse behind BTS and other global K-Pop acts, might be contemplating acquiring SM Entertainment, as reported by ChosunBiz.
Rumors of HYBE Labels considering an acquisition of SM Entertainment arise from reports indicating Kakao’s exploration of selling SM. Despite Kakao’s official denial, industry insiders highlight ongoing speculation and suggest potential acquirers.
Last year, HYBE garnered attention with its attempt to acquire SM Entertainment, a potential game-changer for the K-Pop landscape. The proposed deal generated immense interest and curiosity in the entertainment world. However, it ultimately fell through, with various factors contributing to its collapse.
Fresh rumors suggest HYBE’s Chairman, Bang Si Hyuk, has discreetly approached private equity funds (PEFs) to propose acquiring SM Entertainment. This subtle approach, in contrast to the previous high-profile attempt, hints at a potentially more strategic and cautious approach this time.
Other companies are also expressing interest in acquiring SM Entertainment, not limited to HYBE.
An intriguing possibility emerges with the potential reacquisition of SM Entertainment by its founder, Lee Soo Man. Despite selling 14.8% of the stake to HYBE, recent court developments suggest Lee Soo Man may be contemplating a return. The court’s acceptance of his request to review board meeting minutes and attached documents from SM Entertainment indicates a possible reexamination of the ownership dispute.
Industry sources hint at NCSOFT, a prominent gaming company, being a potential buyer for SM Entertainment. Despite once being involved in K-Pop-related ventures through its subsidiary, Universe, reports indicate NCSOFT has withdrawn from such activities. Doubts also linger about their financial capacity to acquire a company of SM Entertainment’s magnitude.
Adding to the mix, fashion company F&F has reportedly shown consistent interest in acquiring SM Entertainment, as per industry rumors. F&F, with steady operating profits around ₩100 billion KRW (approximately $74.7 million USD), has ventured into the K-Pop market through F&F Entertainment, positioning themselves as a potential contender.
The rumor mill also suggests the involvement of the American entertainment giant, MGM, in the potential acquisition of SM Entertainment. Notably, MGM and SM Entertainment share a prior connection, having collaborated on promoting a K-Pop audition.
Recent reports indicate Kakao’s alleged interest in selling SM Entertainment to MGM, despite Kakao Entertainment officially denying such claims.
The future of SM Entertainment remains uncertain, yet the diverse interest from parties like HYBE, NCSOFT, F&F, and others underscores the enduring appeal of the company, despite recent challenges.