(UPDATE) HYBE PULLS OUT OF SM ACQUISITION DEAL

UPDATE: After vowing to acquire 40% of SM Entertainment, HYBE has pulled out of that deal, explaining in a statement fired off Sunday (3/12) that it was suspending its acquisition bid following a discussion with tech firm Kakao, its rival bidder.

Last month HYBE acquired a 14.8% stake in SM for around $335 million through the acquisition of shares from founder Lee Soo-man.

HYBE CEO Park Jiwon announced on 2/22 that the company had completed its 14.8% acquisition of Lee Soo-Man's stake in SM Entertainment and is now SM's largest shareholder.

Park made the announcement at roughly midnight ET following a week of headlines characterizing HYBE's investment in its rival label as a "hostile takeover." That point of view gained credence on 2/21 with the release by SM of a 15-minute video opposing HYBE's maneuvering.

As it vows to acquire a 40% share in the company, HYBE also issued a statement reassuring fans, employees and artists that SM acts will not be discriminated against. See Park's statement below.

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

— HYBE OFFICIAL (@HYBEOFFICIALtwt) February 22, 2023