The Hybe Co. headquarters in Seoul, South Korea on Feb. 19, 2023. The corporate dropped its plan to take management of Ok-pop pioneer SM Leisure.
SeongJoon Cho | Bloomberg | Getty Pictures
Hybe, the company representing top-selling South Korean boy band BTS, dropped its plan to take management of Ok-pop pioneer SM Leisure, the corporate stated on Sunday.
Hybe’s withdrawal put an finish to a weeks-long takeover battle with social media big Kakao, and can permit Kakao to broaden its leisure enterprise additional.
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Hybe stated its determination to halt the takeover bid got here after the worth to accumulate SM exceeded a good vary because the competitors intensified.
Kakao final week launched a 1.25 trillion received ($946.80 million) tender bid for as much as 35% of SM Leisure at 150,000 received per share, nicely above the 120,000 received per share supply from Hybe for a 25% stake that gained little traction with shareholders.
On Friday, shares in SM Leisure closed at 147,800 received.
Hybe stated after talks with Kakao, the 2 corporations agreed to cooperate on issues associated to their platforms.
Lee Jong-im, a Seoul-based tradition critic, stated the takeover of SM was the most recent of a collection of efforts by Kakao to broaden its content material and leisure arm lately.
In 2021, Kakao Corp acquired a number of content material corporations, together with online game developer NFLY STUDIO.
Kakao Leisure, a subsidiary of Kakao, additionally invested 12 billion received in Metaverse Leisure, which makes a speciality of digital idol teams.
Kakao and SM Leisure stated they welcomed Hybe’s determination to drop its bid.
“Kakao and Kakao Leisure will proceed its tender supply bid till the twenty sixth to safe an extra stake and work on the main points of enterprise cooperation between HYBE and SM,” Kakao stated in an announcement.