Kakao: Last News

HYBE, home to K-pop superstars BTS, is set to sell off its entire stake in SM Entertainment.Today (March 24), HYBE announced that it would accept a tender offer by South Korean internet giant Kakao and sell its 15.8 per cent stake in K-pop agency SM Entertainment, as reported by Reuters.HYBE’s share of SM Entertainment is worth about ₩564billion (roughly US$437million), based on Kakao’s March 7 tender offer to buy up to 35 per cent of SM Entertainment for ₩150,000 per share.According to Reuters, the planned sale of SM Entertainment shares by HYBE would net the K-pop giant a profit of around US$87 million, which is roughly 25 per cent higher than the price the company originally paid for the shares.Following the announcement, shares of both Kakao and SM Entertainment companies went up about half a per cent, as of 1:30pm KST.

SM Entertainment stock prices.Today (July 17), Korea Bizwire reported that the Seoul Southern District Prosecutors Office has formally filed for an arrest warrant for Kakao founder Kim Beom-su. It comes a week after police questioned Kim over his alleged involvement in manipulation of SM Entertainment shares.

Kakao has been raided by South Korean authorities over allegations that it was involved in stock manipulation over its purchase of SM Entertainment shares.According to a report by English South Korean publication Korea JoongAng Daily, about 40 prosecutors and investigators from the Financial Supervisory Service (FSS) – the East Asian country’s financial regulator – had confiscated data from Kakao’s office in the city of Pangyo in relation to its stock trading activity from February 2023.“The special judicial police at the FSS is presently in the process of investigating if the sale of SM shares is in violation of the Capital Markets Act under guidance from the prosecution,” an FSS spokesperson said in a statement to South Korean press, per Korea JoongAng Daily.“The team is looking into whether there was artificial engagement to sway share prices in a certain direction,” they added.Per The Korea Herald, Kakao are reportedly under investigation for allegedly artificially inflating the stock price of SM Entertainment in an attempt to block HYBE from taking control of the K-pop agency.Back in February, HYBE had launched a tender offer to buy up to 25 per cent of SM Entertainment for ₩150,000 per share. However, HYBE had only been able to acquire 0.98 per cent through that offer, per The Korea Herald.Around the same time, HYBE had submitted a petition to the FSS over an “abnormal” 2.9 per cent purchase of SM Entertainment stocks that had been transacted through a IBK Securities’ branch in Pangyo, according to Korea JoongAng Daily.Kakao has yet to comment on the situation. NME has reached out for comment.Meanwhile, HYBE has since dropped its bid to acquire SM Entertainment following a discussion with Kakao.

Kakao, has announced a new partnership with American label Columbia Records.Through the deal, Kakao Entertainment aims to expand its presence in the North American market, starting with IVE‘s upcoming debut studio album ‘I’ve IVE’ and the pre-release song ‘Kitsch’. Columbia Records is set to help with the distribution, marketing and promotion of the record and its singles.“This partnership aims to expand Kakao Entertainment’s music distribution network and elevate its position in the global market by leveraging Columbia Records’ unparalleled expertise in the North American music business,” Kakao said in its statement, per Variety.In South Korean, IVE are signed to K-pop agency Starship Entertainment, which is owned by Kakao Entertainment.

HYBE is ceasing its acquisition of SM Entertainment, the K-pop company announced today (March 12), after a discussion with competitor Kakao.In a press statement, HYBE said it decided to suspend the acquisition after a discussion with tech giant Kakao. “The two companies agreed to cooperate on matters related to their platforms,” it added.HYBE made the decision, it said, “after observing that the market has been showing signs of overheating due to competition with both Kakao and Kakao Entertainment”.

K-pop agency SM Entertainment has released a statement in support of internet giant Kakao’s tender offer to buy a large stake in the company.Yesterday (April 7), Kakao – which currently holds 4.9 per cent of the SM Entertainment – announced a tender offer to buy up to 35 per cent of the company for ₩150,000 per share. If successful, this bid would make Kakao the largest shareholder of the K-pop agency, over BTS label HYBE, which has acquired nearly 16 per cent of SM.Soon after Kakao’s announcement, SM Entertainment released a statement signalling support for the deal, citing “[Kakao’s] respect [for] the current management’s efforts to address factors that have hindered SM Entertainment’s growth”, according to CNN.In the statement, SM Entertainment also said that the Kakao deal would “ensure autonomous and independent management of the company, as well as the continuous and independent activities of SM artists”, per Yonhap News Agency.“Unlike HYBE seeking to take over SM’s board of directors through a hostile merger and acquisition, Kakao is the best horizontal and strategic partner for the successful implementation of the ‘SM 3.0’ vision as it respects SM’s own tradition and identity,” the statement reportedly said.Following Kakao’s tender offer yesterday, shares of SM Entertainment jumped 15.07 per cent to close at ₩149,700.