Kakao "Secures Stake Through SM Tender Offer... Business Collaboration with HYBE" (Update)

Kakao will secure additional shares through the SM Entertainment (SM) tender offer by the originally planned deadline of the 26th. The company plans to secure management rights of SM and collaborate on business with HYBE.

On the 12th, the Kakao community issued a statement expressing respect for HYBE's decision to halt the acquisition of SM. Kakao and Kakao Entertainment agreed to continue various cooperative relationships as partners that mutually influence HYBE and SM positively, aiming to enhance the global status of K-pop and K-culture.

With the uncertainty resolved by HYBE's decision, Kakao and Kakao Entertainment plan to proceed with the scheduled tender offer by the 26th as planned and to concretize business cooperation with HYBE.

Kakao emphasized that to respect SM’s most powerful assets and driving forces?its employees, artists, and fandom?it will guarantee autonomous and independent operations and accelerate global growth centered on the future vision and strategic direction presented by the current management, including 'SM 3.0.'

Jae-hyun Bae, Chief Investment Officer (CIO) of the Kakao community, stated, "Based on SM’s global intellectual property (IP) and production system, along with Kakao and Kakao Entertainment’s IT technology and IP value chain business capabilities, we plan to create new synergy through the combination of IT and IP beyond the expansion of music IP. Through this, we will strengthen each company’s global competitiveness and actively work to make the K-culture industry another national competitive strength."

He explained that they aim to contribute to raising the status of K-culture in the global market through fair cooperation and competition with industry partners and to help it grow significantly as South Korea’s next major export industry.

Finally, the Kakao community added that, considering public and financial authorities’ concerns about the competitive process, they will do their best to complete the acquisition swiftly and smoothly based on consultations with HYBE.