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Source: HYBE |
[Alpha Biz= Kim Jisun] SEOUL, May 27, 2025 — HYBE Corporation has announced it will sell its entire stake in SM Entertainment to Tencent Music Entertainment (TME), a subsidiary of Chinese tech giant Tencent.
According to a regulatory filing with the Financial Supervisory Service, HYBE will offload 2,212,237 shares — representing 9.38% of SM Entertainment — to Tencent Music at ₩110,000 per share. The total deal is valued at approximately KRW 243.3 billion (around USD 178 million). The transaction will be executed through a block deal after market hours on May 30.
This sale marks the exit of HYBE from its high-profile attempt in 2023 to acquire a controlling stake in SM Entertainment, one of Korea’s top K-pop agencies.
HYBE stated the decision was part of its “strategy to streamline non-core assets and focus on key business areas,” and added that the proceeds will be used to secure future growth drivers.
With this deal, Tencent Music will become the second-largest shareholder in SM Entertainment, following Kakao and Kakao Entertainment, which jointly hold a 41.5% stake.
Industry watchers are closely monitoring Tencent Music’s growing involvement in K-pop. The company has long been collaborating with major Korean agencies by distributing their music content in China. It also holds minority stakes in other prominent entertainment firms such as YG Entertainment (4.3%) and Kakao Entertainment (4.61%) through its affiliates.
Analysts expect the acquisition of a significant stake in SM — known for its robust intellectual property portfolio — to further accelerate Tencent’s partnership with the K-pop industry.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
