HYBE has officially announced that it has become the largest shareholder of SM Entertainment.
On Tuesday, HYBE announced that it had acquired a 14.8% stake from Lee Soo Man, the former executive producer of SM. With this, HYBE has become the largest shareholder in SM and the biggest label in the K-pop business.
In the announcement, Park Ji Won, the CEO of HYBE, stated, “As promised on February 10, HYBE resolved the governance issue between former Chief Producer Lee and SM, during the course of the share acquisition. SM will be moving to become a company with a transparent governance structure that prioritizes shareholder value.”
“I am aware of the concerns that fans, artists, employees, and shareholders of SM have due to rumors and speculations around the company. HYBE fully respects the direction laid out in SM 3.0 growth strategy, as well as the value and vision SM’s employees and artists have created,” he went on. “We respect SM’s artists as much as we do our artists at HYBE. Leveraging the expertise we have accumulated, we will do our best to create a brighter future for all artists under SM.”
You can read his full announcement below.
OPEN LETTER TO FANS, ARTISTS, EMPLOYEES, AND SHAREHOLDERS OF SM ENTERTAINMENT pic.twitter.com/CsxqAmopFy
— HYBE OFFICIAL (@HYBEOFFICIALtwt) February 22, 2023
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