BTS agency HYBE buys stake in its K-pop rival | CNN Business


Seoul/Hong Kong

HYBE, the administration company behind superstar boy band BTS, will change into the most important shareholder of its Okay-pop rival, SM Leisure.

The transfer strengthens HYBE’s dominance in South Korea’s music business, the place it’s already the most important participant, even because it seeks to develop overseas.

The South Korean leisure giants introduced the deal Friday, with HYBE set to choose up a 14.8% stake in SM Leisure for 422.8 billion Korean gained ($334.5 million).

SM was based by legendary music producer Lee Soo-man, who’s extensively referred to in South Korea as “the godfather of Okay-pop.” The corporate is thought for representing hit artists, equivalent to NCT 127, EXO, BoA and Women’ Era.

Information that the 2 corporations had been becoming a member of forces fired up traders. SM Leisure’s shares soared 15% in Seoul on Friday, whereas HYBE’s inventory rose 3%.

Exterior of BTS, HYBE additionally represents outstanding bands equivalent to NewJeans, Tomorrow x Collectively and Seventeen.

However its marquee act is presently on hiatus. Members of BTS began particular person obligatory army service in South Korea late final yr, with the group as an entire anticipated to reconvene round 2025.

Now, HYBE is popping its consideration elsewhere.

“This acquisition represents a significant step by HYBE to combine the worldwide experience of each corporations to change into a sport changer within the world music business,” the corporate mentioned in a press release.

HYBE has been taking steps to develop its world attain. On Thursday, it announced one other main deal in the US, saying it will purchase the proprietor of High quality Management, a hip-hop label that represents common artists together with Migos and Lil Yachty.

That deal will assist HYBE construct a stronger presence within the US music market, in line with Sunhwa Lee, an web and leisure analyst at KB Securities. In a report Thursday, she famous that the corporate’s broader ambitions had been “to transcend the boundaries of Okay-pop and develop new world artists throughout varied genres.”

“This partnership is an important a part of our progress plan to innovate the leisure business by means of a diversified portfolio,” HYBE Chairman Bang Si-Hyuk mentioned in a press release. “We are going to work collectively to proceed including depth of hip-hop to the worldwide music business.”

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