HYBE and Kakao hold a meeting to come to an agreement on SM Entertainment’s future.

According to media outlet reports on March 11 KST, representatives of HYBE and Kakao held a private meeting on the afternoon of March 10 to discuss a potential settlement on the issue of which side will acquire SM Entertainment.

Industry insiders believe that with the price of SM Entertainment’s stocks having reached double its price from just a month ago, both sides have now entered the danger zone of the “winner’s curse”. Which ever side ultimately claims the position as the largest shareholder of SM Entertainment will likely face repercussions once stock prices plummet.

Previously, both HYBE and Kakao put out a tender offer to current shareholders of SM Entertainment, with HYBE setting its offer at 120,000 KRW (~ $91 USD) per stock and Kakao at 150,000 KRW (~ $114 USD) per stock. Currently, SM Entertainment stocks are steadily surpassing the offered prices by both companies.

Some insiders believe that HYBE and Kakao will be seeking for a settlement in which no one side takes complete control of SM Entertainment, instead opting for co-management or other similar methods.

BTS V live Weverse:

 

Related Articles

Latest Articles

Follow US

50,000FansLike
20,000FollowersFollow
10,000FollowersFollow
400,000SubscribersSubscribe