HYBE Sells All Of Its Shares In SM Entertainment To Another Competitor

Tencent Music Entertainment will now have a stake in SM Entertainment.

HYBE, the entertainment powerhouse behind global K-pop acts, has announced its decision to divest its entire stake in SM Entertainment, marking a significant move in the evolving landscape of South Korea’s music industry.

According to a disclosure filed with the Financial Supervisory Service on May 27, 2025, HYBE will sell all of its approximately 2.21 million shares in SM Entertainment to Tencent Music Entertainment (TME) for around ₩243 billion KRW (about $177 million USD). The transaction is scheduled to take place on May 30 via a block trade after the market closes.

The deal values each SM share at ₩110,000 KRW (about $80.30 USD). HYBE’s board of directors has already approved the sale. This move brings an official end to HYBE’s investment in SM Entertainment, a relationship that began in 2023 amid a high-profile battle for control over the legacy K-pop label. HYBE had previously acquired a significant stake in SM, sparking competition and reshaping the industry dynamics.

Tencent Music, a subsidiary of China’s tech giant Tencent, is expected to further expand its influence in the K-pop and Asian music markets with this acquisition. The sale underscores HYBE’s strategic shift as it continues to focus on its core labels and global expansion, while SM Entertainment is expected to enter a new phase under a different shareholder structure.