Tencent Music buys SM Entertainment stake in K-pop bet
[SEOUL] A Tencent Holdings subsidiary is snapping up a nearly 10 per cent stake in SM Entertainment valued at about US$180 million, marking a rare Chinese investment into a South Korean company in recent years.
Tencent Music Entertainment Group, which is controlled by Tencent, will buy the stake from BTS agency Hybe, which is selling its remaining 2.2 million shares in SM Entertainment at 110,000 won each, a 15.3 per cent discount to Tuesday's (May 27) close, according to a regulatory filing.
The move comes as China is widely expected to lift its nearly decade-old unofficial ban on K-pop performances in mainland China. That potentially opens South Korean companies such as SM Entertainment to resume music distribution through the relationship with Tencent.
Before the restrictions, China was among the fast-growing markets for K-pop.
China imposed the so-called 'K-wave ban' in 2016 in retaliation for South Korea allowing the US military to deploy missile defence system called Thaad, or Terminal High-Altitude Area Defense, on its soil.
Tencent, China's gaming and social media leader, was not available for an immediate comment.
A NEWSLETTER FOR YOU
Friday, 2 pm Lifestyle
Our picks of the latest dining, travel and leisure options to treat yourself.
Sign Up
Sign Up
For Tencent, the deal would mark its first major investment in South Korea's music industry in years. It owns a 4.3 per cent stake in YG Entertainment and a 5.95 per cent holding in Kakao, South Korea's biggest Internet company which is also the largest shareholder of SM Entertainment.
The selldown will bring an end to the bitter battle for the control of SM Entertainment. Hybe and Kakao sought to buy SM Entertainment in 2023, in what would have been one of the country's biggest media sector deals. But Hybe dropped its pursuit of SM after the bidding war pushed up the SM stock price, making it too expensive.
The deal also resulted in Kakao founder Brian Kim getting caught up in the regulatory crosshairs, over charges that he allegedly tried to manipulate the SM Entertainment shares. Kim has repeatedly denied any wrongdoing.
South Korean entertainment stocks have been among the biggest gainers in the Korean equity market this year, driven by expectations they will be shielded from tariff wars. The rally is also underpinned by expectations of China lifting its K-pop ban.
SM Entertainment shares have rallied 72 per cent so far this year while YG Entertainment jumped 77 per cent.
Hybe said in a statement it divested non-core assets and the proceeds will be used to fund future growth. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
30 minutes ago
- Straits Times
Singapore-listed Acrophyte Hospitality Trust jumps as it ‘evaluates strategic options'
Seven more hotels in Acrophyte's portfolio are slated for asset enhancement initiatives in 2025, after six hotels completed theirs in 2024. PHOTO: ACROPHYTE HOSPITALITY TRUST SINGAPORE - A strategic review is underway for Acrophyte Hospitality Trust, formerly known as ARA US Hospitality Trust, as a potential transaction involving its stapled securities is on the table but not guaranteed. The renaming of the Singapore-listed hotel trust was done in 2024 after the family of billionaire couple Gordon Tang and wife Celine completed their takeover of ARA US Hospitality Trust's managers. Their vehicle for this was Acrophyte, which was known as Chip Eng Seng until the Tangs privatised the company in 2023. The Tang family also upped their stake to become the trust's largest unit-holder and sponsor. On May 30, the managers of Acrophyte Hospitality Trust said that they are currently evaluating a 'range of strategic options' in light of the potential capital expenditure needed to enhance its portfolio of hospitality assets in the United States. 'In connection with their evaluation, the managers are also in discussions with the sponsor in respect of a potential transaction involving the stapled securities,' they said. Despite being in the process of reviewing options, the managers emphasised that 'there is no certainty that any transaction will materialise' from the ongoing review or discussions. Acrophyte's stapled securities jumped 11.3 per cent, or three cents, to 29.5 cents as at 11.24am on May 30. This after a gain of 7.5 per cent on May 29, before the announcement. Seven more hotels in Acrophyte's portfolio are slated for asset enhancement initiatives in 2025, after six hotels completed such initiatives in 2024. Work on two Marriott-branded hotels will commence in June as that on five Hyatt-branded ones will start in November. The hospitality stapled group comprises Acrophyte Hospitality Property Trust and Acrophyte Hospitality Management Trust. For the fiscal first quarter of 2025, its revenue declined 7.7 per cent to US$33.5 million from US$36.2 million in the year-ago period amid an 8.3 per cent year-on-year downsizing of its portfolio. Its Q1 operating profit was 12.8 per cent lower at US$9.3 million, from US$10.7 million in the previous corresponding period. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
30 minutes ago
- Business Times
US regulator drops lawsuit against Binance
[WASHINGTON] The US Securities and Exchange Commission (SEC) on Thursday dropped its civil lawsuit against the cryptocurrency exchange Binance and its majority shareholder, Changpeng Zhao. 'In the exercise of its discretion and as a matter of policy, the Commission deems it appropriate to dismiss this litigation,' the agency said in a court filing. The SEC added that dropping the lawsuit 'does not necessarily reflect its position in any other litigation or proceeding.' Binance, the world's largest cryptocurrency exchange, is accused in several countries of allowing criminal organisations to launder funds through its platform. Zhao, the company's co-founder and former CEO, pleaded guilty in late 2023 to violating anti-money-laundering requirements in the United States, serving a four-month prison sentence for it in 2024. As part of the company's US$4.3 billion settlement with US authorities, Zhao agreed to resign from his position at Binance while remaining a majority shareholder. US President Donald Trump's pro-crypto SEC chair Paul Atkins has dropped other cases against major cryptocurrency platforms like Coinbase and Kraken initiated under the administration of former president Joe Biden. AFP
AsiaOne
36 minutes ago
- AsiaOne
'We will sue him until he goes bankrupt': Victim's mother plans to sue ex-actor Ian Fang, Entertainment News
In the case of former artist Ian Fang sexually assaulting a girl, the victim's mother bluntly said that the sentence given to Fang was too light. The 35-year-old fomer MediaCorp artist was sentenced to 40 months' jail after he pleaded guilty to having sex with the girl before she turned 16. He had sex with the teen on nine occasions between June and July 2024, mostly unprotected. She eventually contracted human papillomavirus (HPV), a sexually-transmitted disease. Chinese-language media outlet 8world spoke exclusively with the victim's mother, who agreed to a five-hour interview under the condition of anonymity. She expressed strong dissatisfaction with the court's verdict and urged the authorities to review the case, calling for a harsher sentence, including caning, to prevent Fang from harming other women in the future. Fang was charged under Section 376A(2)(b) of the Penal Code, which carries a maximum penalty of up to 10 years' imprisonment or a fine, or both — but does not include caning. Fang was not caned as the victim was 15 at the time of the offences. The verdict might have been different if she had been below 14, as he would have been charged for rape. Under Section 375 of the Penal Code, those convicted of rape could be jailed for between eight and 20 years, and receive at least 12 strokes of the cane. Fang, the mother alleged, used his celebrity status and position of trust to take advantage of her. "The age gap between them was significant, and Fang used his celebrity status to manipulate her into bed," she said. "The first time, he brought wine to the hotel to visit my daughter while she was unwell, raped her and afterwards told her not to tell us — warning that he could go to jail if anyone found out. He knew exactly what he was doing was wrong," she added. "He had an ulterior motive every time they met. If that's not exploitation, then what is?" she questioned. "I just can't accept it. He manipulated and coerced my child," she said. She was equally firm in her view of the sentence: "I'm very, very dissatisfied. He should have been caned. At least then there would be a lasting mark - something to remind him, and others, of what he did. Now, there's nothing. No consequence that stops him from doing this again." The mother also questioned why a gag order had initially been imposed on Fang's identity. She believed revealing his name could have encouraged other potential victims to step forward. "There might be more victims out there," she said. She accused Fang of ruining her daughter's life and infecting her with a sexually transmitted disease. "I'm going to sue him until he goes bankrupt," she declared. "Her first time should have been with someone who truly loved her — not someone like him. He's a predator. A wolf in sheep's clothing," she said. She has since hired a lawyer to begin civil proceedings: "Yes, civil suits are about compensation. But this isn't about the money. I want to sue him until he's bankrupt." If any damages are awarded, she added, the entire sum would be donated to charity: "We don't want a cent of his money." [[nid:718288]] This article was first published in The New Paper. Permission required for reproduction.
