HYBE has just become the top shareholder of SM Entertainment. 

In a press release, HYBE confirmed that they have acquired the shares of Lee Soo Man, SM Entertainment's former Chief Producer, totalling to a 14.8% stake in the entertainment company worth KRW 422.8 billion. SM Entertainment is currently home to some of K-pop's most prominent acts including NCT, Red Velvet, Girls' Generation, Super Junior, aespa, EXO, and more. 

This move comes as part of HYBE's continuous efforts to become a global entertainment company. In a statement, HYBE Founder and Chairman Bang Si-Hyuk said, "HYBE fully agrees with former Chief Producer Lee’s strategic initiatives including metaverse, a multi-label system, and the sustainable vision campaign. Leveraging our capabilities and resources, HYBE will further strengthen the presence of K-pop in the global stage."

HYBE is also reportedly planning to acquire additional shares from minority shareholders in an attempt to protect their stake in SM Entertainment. With Lee’s full endorsement, the offer is said to share the control premium enjoyed by the largest shareholder with minority shareholders. 

This news comes after it was announced that Kakao Corp acquired 9.05% shares of SM Entertainment, making them the second largest shareholder of the company. According to new reports, Lee opposed Kakao's investment, calling it "an act of illegality against the commercial law and article of association" for SM Entertainment to issue new stocks and convertible bonds. Lee is reportedly currently pursuing legal action against the matter. 

HYBE also most recently acquired US-based hip-hop label QC Media Holdings as part of HYBE America. HYBE is home to an array of music labels, including BIGHIT MUSIC, PLEDIS Entertainment, HYBE Japan, SOURCE Music, BELIFT LAB, and ADOR.