Hong Kong/Seoul

BTS company HYBE says it has known as off a takeover bid for SM Leisure, ending weeks of company mudslinging that has dominated headlines in South Korea.

HYBE mentioned Sunday it made its choice “after observing that the market has been exhibiting indicators of overheating on account of competitors with each Kakao and Kakao Leisure.”

“The corporate has additionally taken under consideration the potential damaging affect on HYBE’s shareholder worth,” it mentioned in a press release to CNN.

Final week, tech large Kakao and its leisure unit mentioned that they had doubled down on their quest to take management of SM, the enduring Okay-pop music company. They sought to purchase as much as 35% of the music label, simply days after a earlier share sale settlement between the 2 events was blocked by a South Korean court docket.

Kakao provided SM shareholders 150,000 received ($115) per share, way more than HYBE’s earlier provide of 120,000 received ($92) per share, which garnered solely gentle curiosity from traders.

There have been considerations within the business that HYBE’s bid to take a larger stake in SM — which is thought for representing hit artists comparable to NCT 127, EXO, BoA and Women’ Technology — would unfairly dominate the world of Okay-pop. HYBE Chairman Bang Si-Hyuk had rejected these accusations in an unique interview with CNN’s Richard Quest.

HYBE at the moment owns 15.8% of SM. That possession is derived from shares gained from its tender provide and its earlier holding of 14.8% bought final month instantly from Lee Soo-man, the founding father of SM and a legendary music producer extensively referred to in South Korea as “the godfather of Okay-pop.”

Within the Sunday assertion, HYBE mentioned the value of buying SM had “exceeded the honest acquisition worth vary because the competitors with each Kakao and Kakao Leisure intensified.”

Each corporations have agreed to “cooperate” on issues associated to their platforms sooner or later, it mentioned.

SM Leisure mentioned in a press release that it “welcomes” HYBE’s choice to droop its takeover bid.

Kakao and its leisure unit will proceed with their present tender provide to SM shareholders, which is able to wrap up on March 26, they advised CNN.

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