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☆ 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.

☆ The Arnaults are betting big on K-Pop, and it shows the power of South Korea's luxury spending machine
▼ + stars: | 2023-01-31 | by ( Cheryl Teh | ) www.businessinsider.com time to read: +6 min

Experts tell Insider this is a calculated move to tap into the booming South Korean market. A targeted move to win over the South Korean marketBTS member Jimin (left) and BLACKPINK singer Rosé. "Fashion trends tend to be created and adopted in South Korea, before being diffused to other markets in Asia," Dubois said. She also said South Korea is "increasingly known" for its K-Pop stars, movies, and shows in the US — which helps with promotions stateside too. Once the COVID situation settles, it is possible that Chinese tourists, with their spending power, return to Korea," Kim said.

Justin Bieber has become the latest high-profile artist to sell his share of the rights to his music. The deal includes the publishing rights to a back catalogue that spans over 290 titles, including hits "Sorry," and "Despacito." “The impact of Justin Bieber on global culture over the last 14 years has truly been remarkable,” Merck Mercuriadis, founder and CEO of Hipgnosis Song Management said in a statement. Bieber joins a growing body of artists, including Bob Dylan and Bruce Springsteen, in making major deals to sell the rights to their back catalogues. In January 2022, it was revealed Dylan, 81, had sold the rights to his entire back catalogue to Sony.

"We had such a hard time, and I would rather have more Chinese people come than the government restricting their entry so I can do business." "Tour bus operators who have had their vehicles idly parked for over three years are now gearing up for (bus) inspections," said Thai Tour Bus Association President Wasuchet Sophonsatien. Thailand, Japan, the United States, South Korea, Australia, Macao, Singapore, Hong Kong and Taiwan were the most-searched destinations. Yue Hua Entertainment Korea, which manages Tempest, did not respond to a request for comment. "The pandemic outbreak on the mainland is still vigorous and needs time to recover, while domestic consumption remains weak on the mainland."

☆ BTS fandom tech firm Weverse reaches beyond K-Pop
▼ + stars: | 2022-12-22 | by ( Joyce Lee | ) www.reuters.com time to read: +4 min

"We are a fandom business," Weverse President Joon Choi told Reuters. The app also currently has more than 80 teams of artists represented including BTS, and about 8-9 million monthly active users. However, Weverse users' 'superfan' qualities make engagement in those services turbo-charged, Choi said. Users are based in more than 200 countries and only about 10% of the app users speak Korean, Choi said. Top 5 countries Weverse users are from include Japan, Indonesia, Mexico, the United States and South Korea.

☆ K-pop star BTS member Jin to begin military service on Dec. 13 - report
▼ + stars: | 2022-11-24 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Nov 24 (Reuters) - Jin, the oldest member of the K-pop band BTS, will begin his mandatory military service on Dec. 13, South Korean newspaper Aju Business Daily reported on Thursday, citing unnamed military authorities. Spokespeople for BTS' agency, HYBE, and the South Korean Ministry of Defense declined to confirm the report. After years of uncertainty, the group announced in October it would go on mandatory military service, starting with Jin. The group plans to pursue individual projects and reunite in 2025 after all had served, HYBE said at the time. South Korea's defence minister has suggested BTS could still perform overseas while serving in the military.

☆ The K-pop ETF hasn't been doing well, but its creator says Korean content is at 'inflection point'
▼ + stars: | 2022-11-07 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

Since its launch on Sept. 1, the KPOP and Korean entertainment ETF has not performed well — recently trading on the New York Stock Exchange Arca at $15.05 — a roughly 23% drop from its debut. Shares of Korean entertainment companies have been underperforming overall, with YG Entertainment's stock price down around 26% year-to-date and Hybe down more than 64% year-to-date. The fund is a 30-stock index, which includes entertainment companies that manage bands such as BTS, BlackPink, and Twice — their respective agencies being HYBE, YG Entertainment, and SM Entertainment. Shares of Korean entertainment companies have been underperforming overall. Johnny Nunez | Getty Images Entertainment | Getty Images

☆ South Korea's move to force BTS to join the military will cause it to lose out on billions in lost tourism, merchandise, and cosmetics
▼ + stars: | 2022-10-19 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +3 min

BTS's recording label announced all 7 members will enlist in South Korea's military for mandatory service. While the group is on hiatus until 2025, South Korean could lose billions from tourism and consumer goods. In 2017, its estimated $1.1 billion of consumer goods exported from South Korea were related to BTS, like clothes and cosmetics, Yonhap News Agency reported. All able-bodied men in South Korea between ages 18 and 28 are required to serve for two years in the military. However, the country revised its Military Service Act to allow BTS to postpone military service until age 30.

☆ K-pop star BTS member Jin to release first solo single next week ahead of military duty
▼ + stars: | 2022-10-19 | by ( Joori Roh | ) www.reuters.com time to read: +1 min

SEOUL, Oct 19 (Reuters) - K-pop singer Jin, a member of the hit boy band BTS, will release his first official solo single next week, the seven-member band's agency said on Wednesday, following this week's announcement that he will soon start military duty. The song, titled 'The Astronaut', will be released on Oct. 28 at 1 p.m. (0400 GMT), with pre-orders to begin later on Wednesday. The announcement came after band's management group HYBE (352820.KS), which owns Bighit, on Monday said Jin will cancel a request to further delay his enlistment in late October. The other younger band members also plan to serve their compulsory service. Register now for FREE unlimited access to Reuters.com RegisterReporting by Joori Roh; Editing by Lincoln FeastOur Standards: The Thomson Reuters Trust Principles.

☆ Shares in BTS' management rise after band clears uncertainty over military service
▼ + stars: | 2022-10-18 | by ( Joyce Lee | ) www.reuters.com time to read: +3 min

REUTERS/Heo Ran/File PhotoSEOUL, Oct 18 (Reuters) - The announcement by K-pop mega band BTS that members would serve mandatory military service in South Korea has removed a cloud of uncertainty that has hung over their plans. Investors in HYBE Co (352820.KS), BTS' management group, responded to the news by driving its shares up as much as 7.8% on Tuesday. In 2020, BTS accounted for 730 billion won in sales out of the company's 796 billion won revenue, she noted. The Korea Culture and Tourism Institute estimated that BTS' 2020 No. Hyundai Research Institute estimated that BTS' average annual production impact is about 4.1 trillion won, and the value-added economic effect is about 1.4 trillion won, in a 2018 report.

☆ K-pop stars BTS to serve military duty
▼ + stars: | 2022-10-17 | by ( Soo-Hyang Choi | ) www.reuters.com time to read: +2 min

SEOUL, Oct 17 (Reuters) - K-pop boy band BTS will go off on mandatory military service, starting shortly with oldest member Jin, their agency said on Monday. Since their 2013 debut, BTS have became a worldwide sensation with their upbeat hits and social campaigns aimed at empowering youth. All other members will also serve the mandatory military duty according to their respective plans, it added. BTS announced a break in June from group musical activities to pursue solo projects, raising questions about the band's future. Register now for FREE unlimited access to Reuters.com RegisterReporting by Soo-hyang Choi; Editing by Tom Hogue and Susan FentonOur Standards: The Thomson Reuters Trust Principles.

☆ BTS members to serve military duty -HYBE
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Oct 17 (Reuters) - K-pop boy band BTS members will serve mandatory military service, starting with its oldest member Jin, their agency said on Monday. "All other members will also serve mandatory military duty according to their plans," their management group HYBE (352820.KS) said in a regulatory filing. Register now for FREE unlimited access to Reuters.com RegisterReporting by Soo-hyang Choi; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

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