[Click eStock] "SM, Synergy Expected with Tencent Music"

On May 28, Hana Securities stated that it expects various synergies to emerge as Tencent Music acquires the SM shares previously held by HYBE.

Tencent Music acquired a 9.66% stake in SM, which was held by HYBE, at a price of 110,000 won per share.

Lee Kihun, a researcher at Hana Securities, explained, "Considering that there could have been overhang concerns at a price higher than HYBE's public tender offer of 120,000 won, simply resolving this issue is already a very positive factor."

He added, "Since Tencent has invested not only in Kakao but also in SM, we can expect a variety of synergies in business opportunities targeting the Chinese market. Recent K-pop related content from Tencent Music's earnings conference can also be referenced."

He emphasized, "Tencent Music has renewed contracts with YG and Starship, and has carried out activities such as selling official light sticks and other merchandise for G-Dragon in mainland China, holding aespa's first exhibition, and opening a popup store for Babymonster."

He analyzed, "There could be synergies in various management areas such as albums, music, and secondary copyrights with SM. DearU's entry into the Chinese market is also expected to happen as early as June." He added, "It is important to pay close attention, as the collaboration synergies within China can be confirmed immediately."