HYBE confirms it's now the largest shareholder of SM Entertainment

The deed is done — HYBE Labels is officially the single largest shareholder of SM Entertainment.

In a statement, HYBE CEO Jiwon Park confirmed that as of Wednesday, the company completed the acquisition of former SM Chief Producer Lee Soo Man's 14.8% stake.

"HYBE resolved the governance issue between former Chief Producer Lee's and SM, during the course of the share acquisition," he said. "SM will be moving to become a company with a transparent governance structure that prioritizes shareholder value."

He also assured that HYBE's multi-label system gives "complete" autonomy to respective labels.

"HYBE does respect SM's legacy and creative values," he added. "We will share our business model and networking capacities with SM to help its distinct, creative work lead the world."

OPEN LETTER TO FANS, ARTISTS, EMPLOYEES, AND SHAREHOLDERS OF SM ENTERTAINMENT pic.twitter.com/CsxqAmopFy

— HYBE OFFICIAL (@HYBEOFFICIALtwt) February 22, 2023

The acquisition was first reported in February 10, after Kakao became SM's second largest shareholder, following Soo Man, with a 9.05% stake.

SM then released a statement about why their company is against HYBE's "hostile takeover." More than 200 employees of SM also released a statement opposing HYBE's takover attempt.

SM? ???? ??? ??? ???? ?? https://t.co/fIDPaPJbti

The reason why SM is against HYBE's hostile takeover https://t.co/FrrYdV7xln #SMTOWN #SMentertainment

— SMTOWN (@SMTOWNGLOBAL) February 20, 2023

HYBE is home to artists including BTS, SEVENTEEN, Tomorrow X Together, and ENHYPEN.

Groups like Red Velvet, SHINee, EXO, and Girls’ Generation, meanwhile, are with SM Entertainment. —JCB, GMA Integrated News