South Korean music label HYBE is the official largest stakeholder of its competitor SM Entertainment.
In a statement released on Wednesday, HYBE Chief Executive Officer (CEO) Park Jiwon confirmed that HYBE acquired 14.8 percent stock of SM Entertainment, previously owned by its founder and former chief producer Lee Sooman.
The confirmation was issued after SM Entertainment released a video laying down all the reasons why it opposed HYBE's takeover.
OPEN LETTER TO FANS, ARTISTS, EMPLOYEES, AND SHAREHOLDERS OF SM ENTERTAINMENT pic.twitter.com/CsxqAmopFy
— HYBE OFFICIAL (@HYBEOFFICIALtwt) February 22, 2023
Jiwon said with this latest development, SM and HYBE can share experiences that can make them leaders in the K-pop scene internationally, including in the United States, South America, and India.
"HYBE will also benefit from SM's wealth of experience from their artists' success in China, Japan, and Southeast Asia," Jiwon noted.
He claimed that with this collaboration, the two leading companies can be the "most innovative game changer in the global music industry."
HYBE's CEO also said that they can expand HYBE's Weverse and SM's Bubble in the global arena.
"We will also create new opportunities by leveraging the companies' capabilities in solution business pipelines, from concert, distribution, and original story IP to business development," he said.
