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☆ K-pop stocks have sold off this year, but Goldman sees a turnaround
▼ + stars: | 2024-04-17 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +4 min

Goldman Sachs, however, expressed optimism for the industry in a March 14 report, saying the K-pop sector is "misunderstood." Nonetheless, Goldman Sachs said it sees a "high potential for valuation re-rating," as companies still continue to deliver multi-year earnings growth. Goldman pointed out that Japan's top talent agency Johnny & Associates has been mired in a major scandal, leading to the industry turning more favorable to K-pop artists. In 2023, Kouhaku Uta Gassen, the largest music show in Japan, invited five K-pop artists and two localized groups produced by K-pop companies. It was the first time the show has featured male K-pop artists since 2011 and the largest number of K-pop groups ever featured in its line up.

Persons: Danielle, Hyein, NewJeans, Gary Miller, Goldman Sachs, Karina, Goldman, Kouhaku Uta Gassen Organizations: Park, Filmmagic, JYP, YG Entertainment, SM Entertainment, Hybe, SM, Johnny, Associates Locations: CHICAGO , ILLINOIS, Chicago , Illinois, Japan, U.S

☆ Kakao faces growing regulatory risks as political scrutiny rises
▼ + stars: | 2023-11-03 | by ( Joyce Lee | ) www.reuters.com time to read: +4 min

The Kakao messaging application and the Kakao T taxi booking application are seen on a mobile phone in this illustration photo March 13, 2018. South Korean President Yoon Suk Yeol told a public meeting on Wednesday that the market behaviour of Kakao Mobility's taxi-hailing service was monopolistic and required a review. Its regulatory troubles escalated last month when one of its executives was arrested for suspected stock market manipulation during its acquisition of K-Pop agency SM Entertainment (041510.KQ). Last week, regulator Financial Supervisory Service (FSS) said it will refer Kakao, its affiliate Kakao Entertainment and executives involved in the SM Entertainment acquisition to public prosecutors for suspected violation of the Capital Markets Act. "It is necessary to pay attention to legal risks, as problems may arise in the status of KakaoBank depending on the probes' results."

Persons: Thomas White, Yoon Suk Yeol, Kakao, Oh Dong, hwan, Joyce Lee, Miyoung Kim, Sam Holmes Organizations: REUTERS, Kakao Corp, Naver Corp, Reuters, Mobility, SM Entertainment, Financial Supervisory Service, Kakao Entertainment, Pension Service, NPS, Samsung Securities, Thomson Locations: SEOUL, Korean, Kakao

Built using AI technology, Eternity is one of the latest South Korean acts pushing the boundary between real and virtual entertainment. And she’s a natural-born actress.”Video Ad Feedback Are AI-powered virtual bands the future of K-pop? Using deepfake and motion capture technology, Pulse9 then produced the band’s first music video (to accompany the ironically titled track “I’m Real”) in 2021. Metaverse EntertainmentMetaverse Entertainment used AI technology to generate faces, merging the features and hairstyles deemed most desirable into four final characters. The music video for MAVE’s first single, “Pandora,” has already racked up 25 million views on YouTube since its release in January.

Persons: “, ”, Ji, Zae, Pulse9, Lil Miquela, “ I’m, Lee Soo, Netmarble, Metaverse, Kang Sung, MAVE’s, Pandora, Kang, Siri, ” Kang, ” Eternity's, — they’re Organizations: CNN, Pulse9, YouTube, South, SM Entertainment, Metaverse Entertainment, SM, Kakao Entertainment, Entertainment, Wall Street, Park Locations: “, South Korean, ”, Indonesian

☆ 'I believe in the sector': Investing in K-pop? Bernstein analyst is a fan of this stock
▼ + stars: | 2023-09-27 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +3 min

His pick is K-pop agency Hybe, which he's given an outperform rating and a target price of 350,000 South Korean won ($258) — or around 44% upside from Tuesday's close. Hybe's roster of artists includes BTS — one of the biggest South Korean boy bands. "I believe in the sector for the long-term growth and the macro trend," Suh told CNBC's " Street Signs " on Monday. Suh highlighted that Netflix announced in April that it would invest $2.5 billion in South Korean media over the next four years. So this is the reason why the global leading enterprise entertainment players companies try to diversify their IP portfolio to run their business more sustainably."

Persons: Bokyung Suh, Bernstein, Suh, CNBC's, Ted Sarandos, Sarandos, Hybe Organizations: South Korean, Kosdaq, SM Entertainment, JYP Entertainment, YG Entertainment, Disney, Netflix, Spotify, Hybe, BTS, Pledis Entertainment Locations: South Korea, Korean

☆ Shares in K-Pop agencies fall after report of antitrust probe
▼ + stars: | 2023-07-05 | by ( ) www.reuters.com time to read: +1 min

SEOUL, July 5 (Reuters) - Shares in K-Pop management agencies fell on Wednesday, after South Korea's antitrust watchdog began investigations into any potential infractions of subcontracting rules when outsourcing production of albums and merchandise, Yonhap reported. The Korea Fair Trade Commission (KFTC) sent investigators to the offices of HYBE (352820.KS), SM Entertainment (041510.KQ) and YG Entertainment (122870.KQ) on Tuesday, Yonhap news agency reported citing unnamed industry sources. HYBE, SM and YG did not immediately respond to a request for comment. Shares in HYBE, the management agency of K-Pop sensation BTS, fell 2.1% in early morning trade, versus a flat wider market (.KS11). SM Entertainment and YG Entertainment shares also fell 1.5% and 0.4%, respectively, as of 0015 GMT, although YG later reversed losses.

Persons: Yonhap, 1,300.0000, Joyce Lee, Jacqueline Wong Organizations: Korea Fair Trade Commission, SM Entertainment, YG Entertainment, SM, YG, Investment, Securities, Thomson Locations: SEOUL, HYBE

Shares of K-pop agencies dipped briefly on Wednesday after a reported investigation by South Korea's antitrust watchdog. The report said government agencies sent "examiners" to the offices of Hybe, SM Entertainment, YG Entertainment, according to a CNBC translation of the article. Hybe, the agency behind BTS, saw its shares fall as much as 3%, while SM Entertainment fell as low as 2.19%. When contacted by CNBC, South Korea's FTC said they could not confirm or deny the Yonhap report. Hybe said that it has no comments, while YG Entertainment and SM Entertainment did not respond to requests seeking comments to the Yonhap report.

Persons: Lisa, Jennie, Yonhap, Hybe, — CNBC's Kimberly Kao Organizations: Coachella, Valley Music, Arts Festival, Korea's Fair Trade Commission, Yonhap, SM Entertainment, YG Entertainment, CNBC, South, FTC Locations: INDIO , CALIFORNIA, Indio , California, South Korean, Hybe

☆ Kakao's stake in K-pop agency SM climbs to 40%, HYBE retains 8.8%
▼ + stars: | 2023-03-28 | by ( Hyunsu Yim | ) www.reuters.com time to read: +2 min

SEOUL, March 28 (Reuters) - South Korean social media giant Kakao's stake in K-pop agency SM Entertainment (041510.KQ) has reached 40%, the target said on Tuesday, in a deal that has left former bidder HYBE (352820.KS) stuck with more than half of its stake in SM. But Kakao's tender offer for a 35% stake at 150,000 won per share attracted acceptances for more than double the targeted stake, forcing it to scale back allotments in proportion. HYBE said it was left with an 8.81% stake in SM. Kim Hyun-yong, an analyst at Hyundai Motor Securities, said maintaining the remaining stake in SM could help HYBE contain Kakao in the long run. HYBE plans a substantial number of acquisitions and investments this year as the K-pop giant looks to boost its U.S. presence, its chairman Bang Si-hyuk said this month.

Hong Kong/Seoul CNN —South Korean internet company Kakao has become the largest shareholder of SM Entertainment, winning a battle for control of one of the country’s most iconic music agencies. Kakao and its entertainment unit have increased their stake in SM to 39.9%, they said in a Tuesday regulatory filing. In securing a controlling stake, Kakao has seen off rival HYBE, South Korea’s top music agency and home to boy band sensation BTS, after a bruising takeover battle. In a separate Tuesday filing, HYBE said it had sold some of its SM shares to Kakao, reducing its stake to 8.8%. Aespa is represented by SM Entertainment.

☆ BTS agency HYBE seeks U.S. deals after withdrawing bid for SM Entertainment
▼ + stars: | 2023-03-15 | by ( Hyunsu Yim | ) www.reuters.com time to read: +2 min

[1/2] Members of K-pop boy band BTS pose for photographs during a news conference promoting their new album "BE(Deluxe Edition)" in Seoul, South Korea, November 20, 2020. The company's efforts to expand its portfolio of music labels and fan community platforms come after HYBE on Sunday withdrew its plan to take over rival label SM Entertainment (041510.KQ) after a weeks-long battle with social media giant Kakao (035720.KS). HYBE owns multiple subsidiary labels and management companies including Ithaca Holdings, boasting a range of artists including BTS, Ariana Grande and Justin Bieber. The slowdown was largely, but not exclusively, due to the absence of BTS, who are currently on a break as a group, he said. Bang declined to comment on details of a new partnership deal with Kakao Entertainment on fan platform businesses, but added he was "personally satisfied" with the arrangement despite losing the bid to acquire SM Entertainment.

☆ Are they for real? South Korean girl band offers glimpse into metaverse
▼ + stars: | 2023-03-14 | by ( Hyunsu Yim | ) www.reuters.com time to read: +5 min

[1/3] Footages of virtual girl group MAVE is played at the control room of MBC in Seoul, South Korea, February 28, 2023. Apart from backing MAVE:, Kakao launched a 1.25 trillion won ($960 million) tender offer last week to buy South Korean K-pop pioneer SM Entertainment (041510.KQ). SM is home to popular K-pop groups such as Girls' Generation, H.O.T., EXO, Red Velvet, Super Junior, SHINee, NCT Dream and Aespa. MAVE: is an "ongoing" project to explore new business opportunities and find ways to work around technological challenges, said Chu Ji-yeon, who heads Metaverse Entertainment. But South Korean technology has made much progress since then in creating virtual characters.

☆ K-pop giant Hybe drops bid for SM Entertainment, ending takeover battle
▼ + stars: | 2023-03-13 | by ( ) www.cnbc.com time to read: +1 min

The company dropped its plan to take control of K-pop pioneer SM Entertainment. Hybe, the agency representing top-selling South Korean boy band BTS, dropped its plan to take control of K-pop pioneer SM Entertainment, the company said on Sunday. Hybe's withdrawal put an end to a weeks-long takeover battle with social media giant Kakao, and will allow Kakao to expand its entertainment business further. Hybe said its decision to halt the takeover bid came after the price to acquire SM exceeded a fair range as the competition intensified. On Friday, shares in SM Entertainment closed at 147,800 won.

☆ Explainer: How Kakao won a takeover battle against HYBE for K-pop pioneer SM Entertainment
▼ + stars: | 2023-03-12 | by ( Hyunsu Yim | ) www.reuters.com time to read: +4 min

For more than two decades, the K-pop industry was dominated by the trio until BTS rose to global fame in recent years, making its agency HYBE the largest music label in the country. It is the second-largest entertainment group in South Korea by market value at $2.8 billion, trailing HYBE, which is worth $5.5 billion. Lee filed an injunction request to block the deal that was approved by a court, and sold a 15% stake in SM to rival agency HYBE, setting up a takeover battle. Kakao, the most popular social media platform in South Korea, is expanding aggressively into the entertainment industry where it already owns a smaller K-pop agency, Starship Entertainment. In January, Kakao Entertainment announced a 1.2 trillion won ($966.27 million) investment from Singapore's GIC and Saudi Arabia's Public Investment Fund, giving it more firepower for the SM bid.

Hong Kong/Seoul CNN —BTS agency HYBE says it has called off a takeover bid for SM Entertainment, ending weeks of corporate mudslinging that has dominated headlines in South Korea. Last week, tech giant Kakao and its entertainment unit said they had doubled down on their quest to take control of SM, the iconic K-pop music agency. Kakao offered SM shareholders 150,000 won ($115) per share, much more than HYBE’s previous offer of 120,000 won ($92) per share, which garnered only mild interest from investors. SM Entertainment said in a statement that it “welcomes” HYBE’s decision to suspend its takeover bid. Kakao and its entertainment unit will continue with their existing tender offer to SM shareholders, which will wrap up on March 26, they told CNN.

☆ Kakao Strikes Back in the Battle of K-Pop Empires
▼ + stars: | 2023-03-08 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

South Korea internet company Kakao is flashing its checkbook to secure a seat at the pinnacle of the country’s popular music industry. Entertainment company Hybe, manager for global K-pop sensation BTS, will need to pay up if it wants to compete. Kakao, together with its entertainment unit, on Tuesday made a tender offer of nearly $1 billion for 35% of K-pop label SM Entertainment. The high bid price shows Kakao’s determination to take control of one of the largest K-pop labels. Kakao had already bought nearly 5% of SM, which manages bands like Super Junior and Aespa, last week in the market.

It plans to offer SM shareholders 150,000 won ($115) per share. The artists are represented by SM Entertainment, which is currently in the midst of several shareholder disputes. Kakao and its Kakao Entertainment unit already currently hold 4.9% of SM, the company told CNN in a statement Tuesday. Kakao’s gambleKakao is pressing forward nonetheless, inviting SM shareholders to accept its tender offer, which ends on March 26. Its shares closed 3% lower in Seoul on Tuesday, while SM’s shares soared 15%.

☆ Kakao can end K-pop saga with near-$1 bln mic drop
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +2 min

Kakao and its entertainment arm are eyeing a 35% stake in SM via a tender offer worth $962 million. If Kakao succeeds, the company, which has the backing of SM's management, would become the label's top shareholder. Kakao Entertainment in January raised $930 million from investors including GIC in Singapore and Saudi Arabia's Public Investment Fund. The envisioned partnership between Kakao, Kakao Entertainment and SM would cover global distribution, production and more for music and other content. Following Kakao's offer, SM Shares rallied 14% to 148,400 won ($114); they have nearly doubled since the start of the year.

☆ S.Korea court accepts injunction against Kakao purchase of SM shares
▼ + stars: | 2023-03-03 | by ( ) www.reuters.com time to read: +1 min

SEOUL, March 3 (Reuters) - A South Korean court accepted on Friday an injunction filed by SM Entertainment (041510.KQ) founder Lee Soo-man against the acquisition of SM shares by Kakao Corp (035720.KS), blocking its bid to own a 9.05% stake in the K-pop agency, Lee's lawyer said. HYBE has already secured a 15.8% stake in SM and is seeking to acquire more shares through a tender offer bid. SM's current management have called the takeover attempt hostile and has sought to team up with Kakao to pursue various businesses. SM and Kakao did not immediately reply to requests from Reuters for comment. Reporting by Hyunsu Yim; editing by John Stonestreet, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

Hong Kong/Seoul CNN —The billionaire mastermind behind some of the world’s biggest K-pop stars is pushing back on accusations that he’s trying to monopolize the Korean music industry. “It wouldn’t be correct to say that we’re trying to take over the whole industry,” Bang told CNN in an exclusive interview in Seoul. Bang Si-Hyuk, who chairs the HYBE management agency, spoke with CNN's Richard Quest on Tuesday. “When the two companies are combined, a monopoly and oligopolistic group of companies that account for approximately 66% of total market sales will be created,” it told CNN. The company would then announce the outcome and next steps, it told CNN on Friday.

☆ K-Pop’s Corporate Battle Royale Is Just Getting Started
▼ + stars: | 2023-03-02 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

South Korea’s Hybe, the agency behind boy band BTS, is seeking to gain control of SM Entertainment. The Korean pop music industry’s corporate-takeover drama is getting juicier—and the plot twists more outrageous. But shareholders in one of K-pop’s corporate titans will likely end up with a fat payoff when the dust finally settles. South Korea’s Hybe, the agency behind boy band BTS, is attempting to gain control of one of its biggest rivals, SM Entertainment. On Thursday, it upped the ante ahead of SM’s shareholder meeting at the end of March with a bespoke website featuring an open letter to SM investors.

Worldwide boy-band sensation BTS may be on hiatus, but refreshing new financial acts threaten to upend the world of K-pop, and perhaps South Korea. The battle over 28-year-old SM Entertainment, the $2.3 billion force behind Girls' Generation and EXO, is at heart a family feud. It helps, too, that K-pop has turned into one of South Korea’s strongest exports, thanks largely to “Butter” and “Dynamite” singers BTS. "We oppose all aggressive outside mergers and acquisitions, including Hybe," SM said in a statement, according to Reuters. Separately, internet conglomerate Kakao said on Feb. 7 it would acquire a 9.05% stake in SM via 112 billion won of new shares and 105 billion won of convertible bonds.

Align Partners' stake in SM, a pioneer in K-pop behind acts like Girls' Generation and Red Velvet, is just 1% - but still worth tens of millions of dollars. HYBE hasn't disclosed whether it intends to buy more of SM after the current tender offer. Taken together, the 40% stake would cost HYBE about 1.137 trillion won ($884 million) under current plans - though SM shares traded above HYBE's tender offer price on Thursday. Align's Lee said this would become a proxy fight, with SM's current executives wooing shareholders with plans to improve SM's sales and profitability. ($1 = 1,284.9500 won)Reporting by Hyunsu Yim and Joyce Lee; Editing by Kenneth MaxwellOur Standards: The Thomson Reuters Trust Principles.

☆ Boy Band BTS’s Next Hit: A Boardroom Drama?
▼ + stars: | 2023-02-15 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

BTS member Jung Kook performing during the opening ceremony of the World Cup in Qatar last year. The Korean pop-music industry’s influence has swept around the world in the past couple of decades. It is also producing gripping corporate drama: A potential bidding war is brewing, involving two of the largest companies in the K-pop industry. South Korea’s Hybe, the agency behind boy band BTS, launched a tender offer on Friday to buy a quarter of its rival SM Entertainment. It has also agreed to purchase a 14.8% stake from SM’s founder Lee Soo-man.

☆ BTS agency HYBE seeks to take over K-pop rival SM Entertainment
▼ + stars: | 2023-02-10 | by ( Hyunsu Yim | ) www.reuters.com time to read: +2 min

REUTERS/Heo Ran/File PhotoSEOUL, Feb 10 (Reuters) - South Korean entertainment company HYBE (352820.KS) said on Friday it will buy shares worth 423 billion won ($335 million) in rival SM Entertainment (041510.KQ), seeking management rights to strengthen its position in the K-pop industry. HYBE is the agency that manages K-pop mega band BTS. HYBE has also tendered an offer on Friday for SM shares held by minority shareholders, seeking to buy up to 25% of the rival agency with the intention of acquiring management rights. HYBE and SM Entertainment shares were up 6% and 16%, respectively, as of 11:05 a.m. (0205 GMT). Earlier this week, South Korean tech firm Kakao Corp (035720.KS) said it would acquire a 9.05% stake in SM Entertainment to pursue joint projects including global K-pop auditions.

☆ K-pop stocks soar after agency behind BTS announced it would become its rival’s top shareholder
▼ + stars: | 2023-02-10 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

South Korean girl group aespa at the 2022 KBS Song Festival at Jamsil Arena on Dec. 16, 2022, in Seoul, South Korea. The K-pop agency behind BTS is set to become the largest shareholder of SM Entertainment — the legacy company known to have kickstarted the wave of popularity around Korean pop culture. That would make Hybe a top shareholder in SM Entertainment. Shares of SM Entertainment soared on Friday, rising more than 16% at the open in Seoul. Hybe rose 6% and JYP Entertainment rose 2.5%, while YG Entertainment gained 3.8%.

Seoul/Hong Kong CNN —HYBE, the management agency behind superstar boy band BTS, will become the biggest shareholder of its K-pop rival, SM Entertainment. The South Korean entertainment giants announced the deal Friday, with HYBE set to pick up a 14.8% stake in SM Entertainment for 422.8 billion Korean won ($334.5 million). SM Entertainment’s shares soared 14.1% in Seoul on Friday, while HYBE’s stock jumped 6.4%. “This acquisition represents a major step by HYBE to integrate the global expertise of both companies to become a game changer in the global music industry,” HYBE said in a statement. On Thursday, it announced another major deal in the United States, saying it would acquire the owner of Quality Control, a hip-hop label that represents popular artists including Migos and Lil Yachty.

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