It has been reported Cocoa And MOVES have decided to stop the group game on the acquisition of sm entertainment.
According to the financial industry on March 11, Kakao and HYBE reached an agreement on March 10. The two competed to become SM Entertainment’s largest shareholder before the general meeting on March 31. Details of the deal are not yet known, but it has been reported that the two have agreed that neither should become the major shareholder.
Meanwhile, Kakao and HYBE played a game of chicken on SM Entertainment shares. When HYBE failed to acquire 25% of SM shares, Kakao announced on March 7 that it would offer to purchase 35% of SM Entertainment shares at 150,000 KRW (114.45 USD) until March 26. March.
It seems they both settled down after concluding that this type of running doesn’t help either of them. The industry has warned of a winner’s curse and the Financial Watch Service is closely monitoring their transactions to ensure there has been no market manipulation in takeover bids. Additionally, criticisms of these labels that they neglect K-Pop fan concerns have arisen.
Stay tuned for updates on the takeover.