SM Entertainment’s Co-CEOs Declare They Are Against HYBE’s Acquisition In Statement
SM Entertainment‘s Co-CEOs Lee Sung Soo and Tak Young Jun, along with 25 of the company’s top executives, released a statement declaring they were against HYBE‘s purchase of SM Entertainment shares.
On February 10, HYBE announced it had purchased shares from SM Entertainment’s founder, Lee Soo Man, making it the largest shareholder in the company.
We signed a contract on February 8 to acquire a 14.8% stake, or 3,523,420 shares, in SM Entertainment that were previously held by Lee Soo Man.
— HYBE
The shares are expected to be transferred at a valuation of ₩120,000 KRW (about $94.90 USD) each, meaning the entire deal will be worth ₩423 billion KRW (about $334 million USD). The deal is expected to be finalized on March 6.
In response, SM Entertainment’s Co-CEOs, as well as its 25 top executives, released a statement stating that they were firmly against HYBE’s acquisition.
As SM is about to make its leap forward into its SM 3.0 era, in which the company will transition to once again become a fan-centric, shareholder-centered company, we would like to make it clear that all employees and artists, together, are against the hostile M&A.
— SM Entertainment Co-CEOs and Executives
In their statement, SM Entertainment’s Co-CEOs outline the importance of SM 3.0 to the company’s future while once again stating their desire to move away from Lee Soo Man’s influence.
Through SM 3.0, we will begin a new chapter. We will move away from the past in which one person reaped all authority and its awards, and instead, through experts in their fields and collective intelligence, we will enhance our artists and share the joys and awards together.
SM Entertainment will walk each step with our employees and shareholders as we prepare to take our new leap forward. We ask that you watch us and support us.
— SM Entertainment Co-CEOs and Executives
Meanwhile, HYBE’s chairman, Bang Si Hyuk, and SM Entertainment founder Lee Soo Man released a joint announcement announcing their own vision for SM Entertainment’s future.
Lee Soo Man And Bang Si Hyuk Release A Joint Statement Announcing The Future Of SM Entertainment
