HYBE Sells Entire SM Entertainment Stake to Tencent

HYBE has officially announced the sale of its entire 9.66 percent stake in SM Entertainment, consisting of approximately 2.21 million shares, to Tencent Music Entertainment for about 243 billion won (roughly $177 million). The transaction, valued at 110,000 won per share, will be completed through a block trade after market close on May 30, transferring the shares to Tencent Music’s Hong Kong subsidiary. This sale marks HYBE's complete divestment from SM Entertainment, ending its investment that began in 2023 amid a competitive takeover battle involving other major players like Kakao. Tencent Music, a subsidiary of the Chinese tech giant Tencent, will become SM Entertainment’s second-largest shareholder following the deal. HYBE explained the move as part of a strategy to streamline non-core assets and focus on future growth initiatives and global expansion. The sale is expected to reshape the ownership structure and influence within South Korea’s music industry, with Tencent expanding its footprint in the K-pop and Asian music markets.