BTS' Agency HYBE Acquires Stakes in Rival SM Entertainment, Shares Plan For India

With humble beginnings in 2005 as BigHit Entertainment, HYBE, the management company for BTS and TxT, was just a small entity with a few artists signed under their label. Fast forward 18 years later, South Korean entertainment company HYBE has now turned into a force to be reckoned with.

Bang Si-hyuk, the company’s founder, put the iconic K-pop group BTS together and guided them on a path of global success. Today, the company has become the single largest stakeholder of its rival company and one of the ‘Big Three’ entertainment companies in the country, SM Entertainment. In an open letter shared on the official Twitter handle of HYBE, the company has let all the stakeholders know what the future holds. It also has plans for India.

On February 22, HYBE completed the acquisition of 14.8 per cent stakes in SM Entertainment. These were held by SM’s founder and former Chief Producer Lee Soo-man. HYBE is now the single largest stakeholder of the company. The open letter shared by the CEO at HYBE, Park Ji-Won, mentioned that they will move forward to make SM “a company with a transparent governance structure that prioritizes shareholder values."

He also mentioned that he wants SM and HYBE to work in synergy to become the leading faces in the global K-Pop scene. The countries specifically mentioned in the open letter include the United States, South America, and India. Park Ji-Won plans to lead both companies to “become the most innovative game changer in the global music industry."

Undoubtedly, India has become a highlight for many South Korean entertainment companies. Especially with the success of the K-Pop girl group Black Swan and particularly with the growing popularity of the first Indian K-Pop artist Shreya Lenka, better known by her stage name Sriya.

Talking particularly about the artists at SM, the HYBE CEO has promised to do his best “to create a brighter future for all artists under SM."

This acquisition has not been an easy journey for HYBE. Recently, SM Entertainment shared a detailed video on their YouTube channel about why they are against HYBE’s “hostile" takeover. According to them, this synergy will only benefit HYBE shareholders. Furthermore, they have claimed that HYBE is intentionally evading Fair Trade Commission review.

HYBE Corporation is currently operating with a multi-label system and has given autonomy to several labels and their artists operating under it.

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