This [megathread](https://i.imgur.com/CuuqLsG.png) is about the SM Entertainment shares acquisition by Kakao Entertainment through Lee Sung Soo (Chris Lee) and Tak Young Joon and HYBE through Bang Si Hyuk and Lee Soo Man.
**DO NOT** make new posts related to this story to the subreddit. If you have new information/articles, add them to the comments below so they can be integrated into the main post. **Mods may allow a new post for a significant change or official announcement at their discretion.**
**DISCLAIMER ABOUT SOURCES: We prefer to focus on official statements from companies or other vetted sources. There is a lot of other context/speculation around social media, but until presented in an official capacity we consider them unsubstantiated. As Mods, all we can do is compile and summarize, but we are not investigators or journalists.**
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# Timeline of Events
* **Feb 3rd:** SM announced 3.0 plans + restructuring of the company with no inclusion of LSM
* **Feb 7th:** Kakao purchases 9.05% of SM becoming their 2nd largest shareholder, business agreement also signed
* **Feb 7th/8th:** LSM flies back to Korea from the US, plans to take legal action against SM for violating the Commercial Act
* **Feb 9th:** HYBE shares they are considering acquiring a stake in SM
* **Feb 10th:** HYBE sign contract to take over LSM current stake in SM to become their largest shareholder with 14.8%
([source: balloon_wanted](https://twitter.com/balloon_wanted/status/1623827468334542851?s=46&t=HeGMwYXVy01uOr7GnP1MMg))
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# Articles / Posts
|Date|Article / Lede|Post|Source|
|:-|:-|:-|:-|
|230207|Kakao Secures 9.05% Stake In SM Entertainment And Becomes Second Largest Shareholder|Post|[Koreaboo](https://www.koreaboo.com/news/kakao-secures-905-stake-in-sm-entertainment-becomes-second-largest-shareholder/)|
|230207|Lee Soo Man Is Going To Sue SM Entertainment For Illegal Business|Post|[Koreaboo](https://www.koreaboo.com/news/lee-soo-man-sue-sm-entertainment-illegal-business/)|
|230209| Korea Exchange has formally requested that HYBE disclose an official statement on whether it intends on purchasing SM Entertainment shares|Post|[AllKpop](https://www.allkpop.com/article/2023/02/korea-exchange-has-formally-requested-that-hybe-disclose-an-official-statement-on-whether-it-intends-on-purchasing-sm-entertainment-shares)|
|230209|HYBE Confirms Agency Is Considering Acquiring Shares In SM Entertainment|Post|[Soompi](https://www.soompi.com/article/1566037wpp/hybe-confirms-agency-is-considering-acquiring-shares-in-sm-entertainment)|
|230209|HYBE Becomes Top Shareholder Of SM Ent. After Acquiring 422.8 Billion Won Stake From Lee Soo Man|Post|[Soompi](https://www.soompi.com/article/1566119wpp/breaking-hybe-becomes-top-shareholder-of-sm-ent-after-acquiring-422-8-billion-won-stake-from-lee-soo-man)|
|230209|Lee Soo Man And Bang Si Hyuk Release A Joint Statement Announcing The Future Of SM Entertainment|Post|[Koreaboo](https://www.koreaboo.com/news/lee-soo-man-bang-si-hyuk-release-joint-statement-announcing-future-sm-entertainment/)
|230209|Lee Sung Soo & Tak Young Joon, co-CEOs of SM Entertainment, denounce Lee Soo Man & Bang Si Hyuk’s latest move as a ‘hostile acquisition’|Post|[Allkpop](https://www.allkpop.com/article/2023/02/lee-sung-soo-tak-young-joon-co-ceos-of-sm-entertainment-denounce-lee-soo-man-bang-si-hyuks-latest-move-as-a-hostile-acquisition)|
***
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by KPOP_MOD
27 Comments
LSM really said
And here I thought Kwangya was about to be over….
can’t wait to see what happens in the next episode
Since the girl group Billlie is under Mystic Entertainment, and Mystic Entertainment is under SM Entertainment, and SM Entertainment has been penetrated by HYBE.
Is it fair to say BilllieJeans?
[YG you better run!](https://media.tenor.com/xbvXxqd-glUAAAAM/spongebob-running.gif)
Yes, finally the megathread is here. Time for a consolidation!!!
People talking about how Hybe only has 14 percent of shares so it doesn’t matter but turns out they’re looking to acquire 40 percent of shares by March💀 I wonder what kind of agreement LSM made with them
No spoilers but this is playing out exactly like an episode of Succession. LSM been watching too much Logan Roy and Elon Musk.
Reading the timeline really highlights how fast this happened. I remember lsm didnt want to sell his shares to hybe at one point and then he suddenly sold them in a space of 24 hours. He must be really mad right now.
Which SM groups/idols are safe and which are getting the chop?
Bang PD and LSM as enemies-to-lovers isn’t what I thought would happen in 2023
I don’t have a horse in the race but it’s amusing to see the backstabbing SM CEOs getting rekt tbh (in a matter of days!). lol
As someone with no real investment in these two companies’ groups I’m sitting here eating popcorn
My thoughts go out to anyone with ult groups in SM! Hoping for the best for your faves
This is gonna be fun…
we in it now boys
Who needs comebacks when we have *gesturing wildly* this?
With what HYBE did to Gfriend I’m scared for RV, meanwhile aespa’s stuck in limbo for their first album. Those thinking their groups won’t be affected and this is just corporate fighting are sorely mistaken.
Hopefully I’m wrong
With the kakao and lsm lawsuit if kakao loses, what would actually happen? does that mean they have to give the stocks back and can’t rebuy the stocks if they are made available? Does that mean they can’t buy any stocks from sm for a while? Or do they just get sued?
Netflix and Disney+ execs frantically assembling documentary teams rn
I really don’t care about who is in charge. All I hope is that the artists, trainees, and staff members don’t end up suffering as a result of rich men fighting. SM has been messy enough recently, I pray that things don’t get worse with all the upheaval.
I don’t mind the top shareholder but I’m going to be a bit nervous if Hybe becomes the majority controlling one.
these rich men have nothing Bette r to do I guess? I hope idols, artists, producers etc get proper protections, have their contracts re-evaluated
Can someone give me a ELI5 on how this is gonna affect current SM groups? I wasn’t around when HYBE was snatching companies and disbanding groups left and right so idk if those circumstances were different… I’m not even an SM group stan, I just wanna make sure we aren’t going to have a GFriend situation☹️ and I need the Aespa girls to have a comeback ASAP!
I am very invested in the mess that is SM entertainment – ngl i wish their entire leadership team goes down lol
God Chris Lee pissing his pants over getting rug pulled is the fountain of Youth. I’ll probably outlive the sun at this point.
ALL HAIL THE MEGATHREAD. Thanks Mods!
Wanna share this really good [**twitter thread**](https://twitter.com/hadassah_luke/status/1623720694168305664?s=46&t=HeGMwYXVy01uOr7GnP1MMg) and some of the highlights:
Basically an explanation of why the Big 3 & Hybe execs are against Kakao’s takeover.
> If you think the Big3 & Hybe are “big fishes,” let me tell you, Kakao is the “Tiger Shark” or “Whale Shark” among korean conglomerates/chaebols. Think of Kakao as the “Elon Musk x Mark Zuckerberg of Korea” except on steroids. Kakao Corp is tech corp that koreans can’t leave w/o.
> Once Kakao acquires SM, it will become a formidable force not just in the kpop entertainment industry but also become even more stronger in the media. Normally, this would be okay but since Kakao is a tech company, it risks destroying the kpop system especially SM. Unlike Pank JinYoung, Yang HyunSuk, & Bang PD, who all came from the music industry/music producers, Kakao’s executives are mostly from the tech sector.
Please, do read the whole thread. The thread does “side” more on HYBE/LSM in this war and it’d be good to see a thread of Kakao’s POV but I must say this thread is really eye-opening. Is Kakao acquiring SM good? Who knows? Is HYBE acquiring SM a better choice? Again, who knows? But I feel like this is a case of lesser evil.
Moreover, I’m not really that concerned with these billionaires. I’m more concerned of the idols / staff / workers in the company. I hope whatever the end of this will be, it’d be for the best for all.