Hybe of BTS is interested in K-pop success


K-pop’s world is growing.

Hybe, the Korean boyband BTS that has been one of the biggest musical acts in the world and is now a major player, purchased a 15% share in rival firm SM Entertainment. They were reportedly available To purchase an additional 25%. The combined investment would be worth $900 million, good for 40%—and control—of one of K-pop’s most powerful companies.

The South Korea’s antitrust regulators have raised concerns about this deal and are likely to scrutinize its impact on consumers.

SM Entertainment is the K-pop company that created K-pop artists like Red Velvet and Girls’ Generation. Three of the largest companies Before Hybe’s rise, YG Entertainment was also included.

Hybe, which was originally called Big Hit Entertainment, was established in 2005. It changed its name to Hybe in 2021. However, the company wasn’t the first to become a market leader in its industry until BTS was a global sensation. BTS was the. Top-seller artist The International Federation of the Phonographic Industry is a nonprofit global representing the record industry. The International Federation of the Phonographic Industry, a global nonprofit representing the recording industry, also launched it. NewJeans girls groupOne of the hottest new K-pop acts is.

Lee Soo Man, founder of SM is selling off his share in the company as a way to make more money. Boost SM’s valueNME, a music website, reported that the sale also took place amid corporate infighting Lee with Chris Lee (SM CEO), his nephew. In a video, Chris Lee accuses his uncle of avoiding taxes and other charges.

SM sold a 9% share to Kakao Entertainment as part of its stock dump. This is expected to offset Hybe’s offer to buy an additional 25% in SM. Kakao Entertainment has been in K-pop since 2021. However, it is a less established company but has had success with singer IU as well as boy band Monsta X.

Helena Kosinski (Vice President of Global at the music data company Luminate) told Quartz that K-Pop was “one of the fastest-growing genres, with the most dedicated and high-spending fans in music.” K-pop is streaming faster than the US total market: K-pop’s listenership grew by 51% in the period 2019-2021 while the US total market was only 32% according to data from Luminate.

K-pop: Antitrust Question

South Korea’s Fair Trade Commission told Reuters that they are monitoring the transaction.

Im Kyeonghwan, a Fair Trade Commission official said, “When a merger or acquisition occurs, we look at different businesses under these corporations including management, record sale, streaming, tours, and merchandise.” Reuters A statement. Although there have been other acquisitions of small- and medium-sized entertainment companies, this deal is unprecedented.

Align Partners, an activist firm that holds a 1% interest in SM Entertainment opposes Hybe’s deals to purchase stock. Align feels that Hybe will benefit from the agreement. pole position In Korea’s music industry and caused harm consumers.

It’s a big statement for Hybe, which spent years — under the Big Hit name — on shaky financial ground. However, the timing of this announcement is striking: Hybe must quickly diversify its revenues, since its major moneymaker, BTS is at risk. On hiatus Until 2025, while South Korean military personnel complete the mandatory service.

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  • Autor : Scott Nover and Julia Malleck
  • Repost source : qz.com


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