HYBE Corporation, the company behind global K-pop stars like BTS and NewJeans, has sold its entire 9.7% stake in rival company SM Entertainment. The buyer is Tencent Music Entertainment, which purchased the shares for about $177 million.
The deal includes 2.2 million shares of SM Entertainment, valued at 243 billion Korean won. The sale will be completed on May 30, 2025. After the deal, Tencent Music will become the second-largest shareholder in SM Entertainment. The largest shareholder remains Kakao Corp., which owns 42% of the company.
HYBE’s sale is part of its plan to simplify its investments. The K-pop industry is changing, and companies are adjusting their positions. For Tencent Music, this purchase strengthens its role in the K-pop market and expands its global music presence.
This move follows HYBE’s earlier attempt to gain control of SM Entertainment in 2023, which was opposed by SM’s management and founder Lee Soo-man. After legal and business challenges, HYBE reduced its shares, leading to this sale.
The transaction happens as China may start easing unofficial limits on Korean pop culture that have been in place since 2016. This could create new opportunities for K-pop companies in China.
This deal marks an important moment in the evolving global K-pop industry and shows how major players like HYBE and Tencent Music are changing the music business landscape.
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