HYBE to acquire 14.8% of SM Entertainment for KRW 422.8bn (terminated)
Not yet reviewed: summarised from filings and press reports; figures may differ between reports. Please check the original sources.
- Deal value
- $292m
- Stake
- 14.8%
- Implied 100%
- $2.0bn
- Revenue
- $587m
- Op. income
- $63m
- Multiples
- EQV/EBIT 31.4xPSR 3.4x
Deal value ÷ stake (structure unconfirmed)
2022 연결 · Multiple reports agree
2022 연결 · Multiple reports agree
On implied equity value
- Target
- SM Entertainment · Music entertainment (artist management)
- Buyer
- HYBE · SI
- Seller
- Founder Lee Soo-man (14.8%) and public shareholders via tender offer
- Structure
- —
- Announced
- Feb 10, 2023
- Closed
- —
- Stage
- Terminated
Target
SM Entertainment is a KOSDAQ-listed K-pop company engaged in artist management, music production, concerts and merchandise.
Deal rationale
Hybe said on Feb 10, 2023 it agreed to buy Lee Soo-man's 14.8% for KRW 422.8bn, describing the purpose as combining both companies' global capabilities to become a 'game changer' in the global music market. Chairman Bang Si-hyuk said he agreed with Lee's strategic direction, and Hybe said Lee would cooperate on SM governance reform. The KRW 120,000 tender for 25% was framed as sharing the control premium with minority holders. Hybe halted the bid on March 12, 2023 after agreeing with Kakao.
| Revenue | $587m |
| Operating income | $63m |
| EBITDA | — |
| Net income | — |
2022 연결 · Multiple reports agree (not yet checked against DART)
Press coverage
- 이투데이 (2023-03-06): “하이브, 에스엠 공개매수 완료…주총 의결권 19.43%까지 확보”
- 이데일리 (2023-03-06): “공개매수 참패한 하이브”
- 인베스트조선 (2023-02-28): “하이브, SM엔터 공개매수 종료…시장은 카카오 맞불에 베팅”
- 뉴시스 (2023-02-10): “하이브의 역량을 투입해 글로벌 시장에서 K팝의 위상을 더욱 확대해 나갈 것”
- 스포츠서울(다음) (2023-02-10): “양사의 글로벌 역량을 결집시켜 세계 대중음악 시장에서 게임 체인저로 도약하기 위한 것”
This is a data entry summarising filings and press reports. Please check the original sources for the figures.