Kakao is Going ALL OUT for SM Entertainment… and You Won’t Believe How Much!
It seemed like Hybe had its merger with SM Entertainment in the bag, but Kakao just made a shocking tender offer of 150,000 won per share to SM Entertainment shareholders in a bid to acquire 35% more stock. If successful, the Korean tech messaging giant would secure 40% ownership and thereby full control over Korea’s founding k-pop entertainment agency. Hybe’s own tender offer only garnered 0.98% as opposed to their goal of 25%.
Only last week Hybe seemed to be the victor, especially after a court injunction blocked Kakao from purchasing 9% of the company via special shares and convertible notes. Oh how fast the plot can change in real life K-drama. Now, Hybe seems to be back on an uphill battle with only 20% of the company in its hands. Can it outspend Kakao to buy more shares if the tech titan is dead-set on buying SM Entertainment at any cost?