HYBE has officially offloaded its entire stake in SM Entertainment to Tencent Music Entertainment, marking a major shift in shareholder dynamics among Korea’s leading entertainment agencies.
According to HYBE on May 27, the company will sell all 2.21 million shares it currently holds in SM Entertainment. The transaction will be conducted through a block deal after market close on May 30, following a resolution by HYBE’s board of directors.
The shares will be sold at ₩110,000 per share, amounting to a total deal size of ₩243.3 billion (approx. $177 million USD).
With this transaction, Tencent Music Entertainment, a subsidiary of Chinese tech giant Tencent, is set to become the second-largest shareholder in SM Entertainment. As of Q1 2025, SM’s major shareholders were:
- Kakao – 21.61%
- Kakao Entertainment – 19.89%
- HYBE – 9.66%
Once the sale is completed, Tencent Music will effectively take over HYBE’s position, significantly strengthening its presence in the K-pop industry.
HYBE initially acquired the SM shares in early 2023 during a heated acquisition battle with Kakao. At the time, HYBE aimed to take control of SM Entertainment but later withdrew its bid, selling a portion of its holdings to Kakao. The latest move marks HYBE’s full exit from SM’s shareholder list.
This transaction also reflects the growing influence of Chinese capital in the K-pop sector, particularly through Tencent, which has been steadily expanding its footprint in global music investments.