HYBE has officially confirmed the sale of its entire stake in SM Entertainment to China's Tencent.

In a public disclosure on 27 May, HYBE revealed that it will sell all 2,212,237 shares it holds in SM Entertainment to Tencent Music Entertainment, a subsidiary of the Chinese tech giant.

The shares, according to Soompi, are being sold at 110,000 won each (approximately $80), amounting to a total transaction value of 243.35 billion won (around $177 million).

The transaction will be carried out as a block trade after market hours on 30 May, with the shares set to be transferred to Tencent Music’s Hong Kong-based subsidiary. Upon completion, Tencent Music will become SM Entertainment’s second-largest shareholder, following Kakao. HYBE, which previously held a 9.66 percent stake, will fully exit its investment.

HYBE initially entered the race to acquire SM Entertainment in early 2023, acquiring a 14.8 percent stake from company founder and former executive producer Lee Soo Man. However, after losing the takeover battle to Kakao, HYBE offloaded nearly half of its holdings to the rival company through a tender offer.

In May 2023, HYBE further trimmed its position via another block deal. With this latest move, the company has now fully divested from SM Entertainment.

“This move is part of our strategy to streamline non-core assets. The capital secured will be used to support future growth initiatives,” HYBE stated in its official comment on the sale.