Kakao / Kakao Entertainment acquires 35% of SM Entertainment for KRW 1.25tn
Not yet reviewed: summarised from filings and press reports; figures may differ between reports. Please check the original sources.
- Deal value
- $862m
- Stake
- 35%
- Implied 100%
- $2.5bn
- Revenue
- $587m
- Op. income
- $63m
- Multiples
- EQV/EBIT 39.2xPSR 4.2x
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
- Kakao / Kakao Entertainment · SI
- Seller
- Public shareholders via tender offer
- Structure
- —
- Announced
- Mar 7, 2023
- Closed
- —
- Stage
- Closed
Target
SM Entertainment is a KOSDAQ-listed K-pop company engaged in artist management, music production, concerts and merchandise.
Deal rationale
Kakao stated in its tender-offer filing that Hybe's share purchases were infringing on its strategic partnership with SM, so it launched the tender to secure a stable stake, with Kakao and Kakao Entertainment each buying 17.5% at KRW 150,000 to reach 39.9% including the existing 4.9%. MTN reported Hybe decided to tender its entire 15.78% after withdrawing its control bid.
| Revenue | $587m |
| Operating income | $63m |
| EBITDA | — |
| Net income | — |
2022 연결 · Multiple reports agree (not yet checked against DART)
Press coverage
- 스마트투데이 (2023-03-07): “카카오, 에스엠 공개매수 선언..주당 15만원에 35% 목표”
- MTN (2023-03-26): “카카오 공개매수 응한 하이브”
- 메트로경제 (2023-03-07): “총 인수 규모는 1조2500억원에 달한다”
This is a data entry summarising filings and press reports. Please check the original sources for the figures.