Seoul: K-pop powerhouse Hybe announced it will sell its entire stake in rival SM Entertainment to China's Tencent for 200 billion won (US$145.5 million). In a regulatory filing, Hybe stated that it will dispose of 2,212,237 shares of SM Entertainment, representing a 9.38 percent stake in the company.
According to Yonhap News Agency, the shares will be sold at 110,000 won each, totaling approximately 243.3 billion won for the full transaction. The sale is scheduled to be completed Friday after the market closes through an after-hours block trade.
Hybe had acquired the stake in 2023 during a high-profile battle to take over SM Entertainment's management rights. The company explained, "We divested non-core assets as part of a choice and concentration strategy." Hybe added that the secured funds will be used to "secure future growth engines."