There may be plenty of consolidation happening amongst the giants of the Okay-Pop trade.

Earlier this week, we realized that South Korea-based Kakao Corp had acquired a 9.05% stake in Okay-Pop firm SM Leisure, which is behind stars like NCT, EXO and Aespa.

Based on Reuters, Kakao is shopping for its stake in SM Leisure in a deal value 217.2 billion received ($172.8 million).

Now, one other large of the Okay-Pop world, HYBE, the corporate behind superstars BTS, can also be taking a stake in SM Leisure.

HYBE is shopping for a 14.8% stake within the firm from SM Leisure founder Lee Soo Man, in a deal value 422.8 billion South Korean received (approx. $334.5 million).

Lee Soo Man was the corporate’s largest shareholder previous to the deal, with an 18.46% stake.

In the present day’s information arrives in the identical week that HYBE America, led by Scooter Braun, agreed to purchase Atlanta rap powerhouse QC Media Holdings or High quality Management, dwelling to acts corresponding to Lil Child, Migos, Lil Yachty and Metropolis Women.

The corporate didn’t disclose the dimensions of the acquisition, however Selection reported that the deal is valued at $320 million in inventory and money, that means that globally, HYBE has spent over $600 million in only one week.

Kakao’s acquisition of 9.05% of SM Leisure earlier this week made it SM’s second-largest shareholder, that means that HYBE, with a 14.8% stake within the firm, is now SM Leisure’s largest shareholder. HYBE additionally reportedly plans to accumulate extra shares from minority buyers to up its stake in SM Leisure.

The change within the share possession of the corporate comes amidst reported rigidity between SM Leisure’s administration and founder Lee Soo Man, who deliberate to file a lawsuit towards the corporate earlier this week following the Kakao deal.

Reuters reviews that HYBE’s funding within the firm by way of the acquisition of shares from Lee Soo Man has been criticized by SM Leisure’s management.

SM stated in a press release that it “oppose[s] all aggressive outdoors mergers and acquisitions together with HYBE”.

HYBE Chairman Bang Si-Hyuk stated in a press release that his firm “totally agree[s] with [SM Entertainment founder] Lee’s strategic initiatives together with metaverse, a multi-label system, and the sustainable imaginative and prescient marketing campaign”.

Lee Soo Man, founder and Chief Producer of Okay-Pop large SM Leisure, delivered a speech at Stanford College in Might final yr outlining his imaginative and prescient for Okay-Pop.

His imaginative and prescient contains the SM Tradition Universe (SMCU), a character-led universe akin to cinematic multiverses like these created by comedian giants Marvel or D.C., is on the centre of SM’s content material technique.

This week, SM Leisure introduced a brand new development technique, dubbed SM 3.0, which can contain establishing 5 new manufacturing hubs and several other music labels at dwelling and abroad. The plan is geared toward systematizing the manufacturing course of for artists.

The transfer was unveiled by co-chief govt officers, Lee Sung Soo and Tak Younger Jun, in a video uploaded on YouTube on Friday (February 3) .

The SM 3.0 technique is seen as an try to cut back the corporate’s artistic dependence on Lee Soo-man.

In October 2022, SM additionally minimize ties with a non-public firm owned by Lee known as Like Planning over issues in regards to the company paying billions of South Korean received yearly to the agency.

SM posted a 65.4% year-over-year income rise in Q3 2023,  to 238.1 billion South Korea received (USD $189.9m), pushed by a 76.1% improve within the income of its ‘MD/Licensing’ enterprise unit.Music Enterprise Worldwide