HYBE Sells Its Entire Stake In SM Entertainment To Tencent
HYBE has officially announced the sale of its entire stake in SM Entertainment to China’s Tencent.
On May 27, HYBE officially announced the sale through a public disclosure. According to the filing, the buyer is China’s Tencent Music Entertainment, which will acquire all 2,212,237 shares held by HYBE. The shares are being sold at 110,000 won (approximately $80) each, for a total transaction value of 243.35 billion won (approximately $177 million).
The deal will be executed as a block trade after the market closes on May 30, with the shares being transferred to Tencent Music’s Hong Kong subsidiary. Once completed, Tencent Music will become SM Entertainment’s second-largest shareholder after Kakao, replacing HYBE, which previously held a 9.66 percent stake.
HYBE first entered the SM acquisition battle in early 2023 by purchasing a 14.8 percent stake from SM founder and former executive producer Lee Soo Man. However, after losing out to Kakao in the takeover battle, HYBE sold roughly half of its shares to Kakao through a tender offer.
HYBE further reduced its stake in May 2023 through another block deal, and with this latest transaction, it has now fully divested from SM.
Commenting on the sale, HYBE stated, “This move is part of our strategy to streamline non-core assets. The capital secured will be used to support future growth initiatives.”
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