By Jihye Lee
Chinese tech giant Tencent is taking a slice of a South Korean entertainment group behind a string of K-pop groups, buying shares in the company from a rival talent agency.
Hybe, the group behind K-pop superstars BTS, said Tuesday that it will sell its remaining stake in competitor SM Entertainment to Tencent's music unit.
Hybe has a nearly 10% stake in SM Entertainment.
In a regulatory filing, Hybe said that it will sell more than 2.2 million shares in SM Entertainment to Tencent Music for approximately 243.35 billion won, equivalent to $177.7 million. The shares are priced at 110,000 won each, about 15% lower than the last closing price.
Hybe said that the deal, scheduled to be completed after market close on May 30, is part of its efforts to manage investment assets effectively.
Tencent Music did not immediately respond to a request for comment.
The transaction comes amid expectations of somewhat warmer relations between China and South Korea. The two countries' foreign ministers met in March to exchange views on bilateral cooperation.
Analysts say that the unofficial return of K-pop concerts to mainland China could be on the horizon following years of restrictions.
Write to Jihye Lee at jihye.lee@wsj.com
(END) Dow Jones Newswires
May 27, 2025 07:32 ET (11:32 GMT)
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