HYBE Offloads Its Stake in K-Pop Rival SM Entertainment
Sells to Tencent Music for nearly $180 million
South Korea's HYBE has sold its 9.38% stake in K-pop firm SM Entertainment to Tencent Music Entertainment (TME). The deal is said to be worth $177 million at current exchange rates.
The Main Players
SM Entertainment is home to some of K-pop's most prominent artists such as Super Junior, EXO, Girls' Generation, Red Velvet, aespa, NCT and RIIZE.
Tencent Music is China's largest owner of music streaming services, operating platforms such as QQ Music, Kugou Music, Kuwo Music and WeSing.
TME is buying 2.21 million shares at 110,000 South Korean won (roughly $80) each.
As per Variety, the deal is set to close on May 30.
SM Entertainment plans to "work more closely with Tencent Music" following the sale, as per South Korean news agency Yonhap.
Improving Relations
As per Music Business Worldwide (MBW), Tencent Music's investment in SM coincides with reports China will soon be lifting its ban on South Korean cultural and entertainment content imports.
The ban stretches back to 2017 and was in retaliation to the deployment of a U.S. missile system in South Korea.
When lifted, it could pave the way for more K-pop ticket, album and merch sales in China, where K-pop acts have been unofficially banned from performing.
South Korea's HYBE has sold its 9.38% stake in K-pop firm SM Entertainment to Tencent Music Entertainment (TME). The deal is said to be worth $177 million at current exchange rates.
The Main Players
SM Entertainment is home to some of K-pop's most prominent artists such as Super Junior, EXO, Girls' Generation, Red Velvet, aespa, NCT and RIIZE.
Tencent Music is China's largest owner of music streaming services, operating platforms such as QQ Music, Kugou Music, Kuwo Music and WeSing.
TME is buying 2.21 million shares at 110,000 South Korean won (roughly $80) each.
As per Variety, the deal is set to close on May 30.
SM Entertainment plans to "work more closely with Tencent Music" following the sale, as per South Korean news agency Yonhap.
Improving Relations
As per Music Business Worldwide (MBW), Tencent Music's investment in SM coincides with reports China will soon be lifting its ban on South Korean cultural and entertainment content imports.
The ban stretches back to 2017 and was in retaliation to the deployment of a U.S. missile system in South Korea.
When lifted, it could pave the way for more K-pop ticket, album and merch sales in China, where K-pop acts have been unofficially banned from performing.
South Korea's HYBE has sold its 9.38% stake in K-pop firm SM Entertainment to Tencent Music Entertainment (TME). The deal is said to be worth $177 million at current exchange rates.
The Main Players
SM Entertainment is home to some of K-pop's most prominent artists such as Super Junior, EXO, Girls' Generation, Red Velvet, aespa, NCT and RIIZE.
Tencent Music is China's largest owner of music streaming services, operating platforms such as QQ Music, Kugou Music, Kuwo Music and WeSing.
TME is buying 2.21 million shares at 110,000 South Korean won (roughly $80) each.
As per Variety, the deal is set to close on May 30.
SM Entertainment plans to "work more closely with Tencent Music" following the sale, as per South Korean news agency Yonhap.
Improving Relations
As per Music Business Worldwide (MBW), Tencent Music's investment in SM coincides with reports China will soon be lifting its ban on South Korean cultural and entertainment content imports.
The ban stretches back to 2017 and was in retaliation to the deployment of a U.S. missile system in South Korea.
When lifted, it could pave the way for more K-pop ticket, album and merch sales in China, where K-pop acts have been unofficially banned from performing.
HYBE
SM Entertainment
Super Junior
EXO
Girls' Generation
Red Velvet
Aespa
NCT 127
RIIZE
Western Labels Expanding Into Asian Markets
Chinese Music Streaming Expansion
Asian Streaming Market Maturation
K-Pop Corporate Consolidation
China-Korea Cultural Relations Thaw
Cross-Border Stakes
China
Tencent Music Entertainment (TME)
United States
Record Labels
South Korea
👋 Disclosures & Transparency Block
This article was selected by the author based on their judgement that it would be interesting to readers.
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