Thunderbolt in the K-pop universe. Entertainment company Hybe, from boy band BTS, decides to buy another industry giant SM Entertainment. This is news that is making a lot of noise, because it is one of the pioneering companies in the sector that has largely contributed to making Korean pop known to the four corners of the planet. An announcement obviously very symbolic, but which also has financial consequences on a very lucrative sector.
With our correspondent in Seoul, Nicholas Rocca
“ The Godfather of K-pop is the nickname of Lee Soo-man, the founder of SM Entertainment, which is to say the influence of the company on the sector. And the news of Hybe’s desire to buy one of the South Korean entertainment giants this Friday panicked the Seoul Stock Exchange. SM Entertainment’s share price gained 15% on the day.
It must be said that it is a historical actor that the new superpower of K-pop wishes to afford. For a long time, the market was dominated by three big companies, including SM Entertainment, before Hybe, under the impetus of its phenomenon group BTS, became much more important. But now, the “boy band” of 7 singers is on hiatus until 2025 due to military service and the company has its back.
If other of its groups like Seventeen or New Jeans are having great success with the purchase of SM Entertainment, the company is trying to guarantee itself a form of historical legitimacy in addition to acquiring a portfolio of stars.
But Hybe does not intend to stop there and announced Thursday to cross the Pacific by buying the American label Quality Control, which represents several heavyweights of hip hop in the United States.
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• K-Pop, the making of a phenomenon