HITS Daily Double


K-pop powerhouse SM Entertainment has posted a 15-minute video making its case against HYBE's plan to acquire 40% of the company after its initial 14.8% purchase.

SM CFO Cheol Hyuk Jang addressed the "hostile takeover" HYBE is allegedly attempting as well as its alignment with ousted SM exec Lee Soo-Man, who sold his majority stake in SM to the Bang Si-Hyuk-led label group.

Many of the details Jang touched on could be viewed as inevitable consequences of any merger of competing companies: reduced diversification in the market, prioritization of HYBE's platforms (WeVerse) for SM artists and claims of unfavorable circumstances for SM artists and employees.

While HYBE has declared that SM will remain a standalone entity, SM called this an empty promise. SM also alleged that HYBE has yet to do financial due diligence—according to SM, HYBE's use of a short-term loan to finance the deal and lack of requisite auditing is cause for concern.

Watch the video below.