MANILA, Philippines — K-pop agency Hybe became the top shareholder of their rival SM Entertainment today after signing a deal with its founder Lee Soo Man.
Hybe, the agency that manages BTS, acquired 14.8% stake of SM Entertainment from Lee Soo Man for 422.8 billion Won or $334 million, Soompi reported.
Apart from the Lee Soo Man deal, Hybe also anounced their plan to acquire additional shares of SM Entertainment from minority shareholders.
Earlier this week, Kakao became SM Entertainment's second largest shareholder after acquiring 9.05% of stake.
Lee Soo Man said that the deal is illegal and will file a legal complaint.
SM Entertainment’s current Chief Executive Officer Lee Sung Soo, Lee Soo Man's nephew, said last week that they envision the company as "SM 3.0" which involved cutting ties with his uncle.
Lee Soo Man said that he is filing a legal complaint against SM Entertainment for violating Commercial Act by issuing new shares without the agreement from him being the top shareholder.
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