(Seoul = Yonhap Infomax) Reporter Park Kyung-eun = Hive is withdrawing from the takeover of SM Entertainment.
It is interpreted that Hive was conscious of the criticism that Hive could fall into the ‘winner’s curse’ if the SM Entertainment takeover was forced in a situation where the amount to be invested before the takeover increased by trillions.
On the 12th, Hive announced that it would stop the acquisition process of SM Entertainment.
Hive judged that the market was showing signs of overheating as competition with Kakao and Kakao Entertainment intensified in the battle for SM Entertainment’s takeover.
He also explained that the decision was made after comprehensively considering the fact that it could have a negative impact on Hive’s shareholder value.
Hive said, “Promoting the acquisition of SM even while conducting a counter tender offer could have a negative impact on the company’s shareholder value.” said.
Hive and Kakao reached a dramatic agreement through a meeting on the 10th.
Hive decided to stop the process of taking over management rights from SM, and agreed to allow the platforms of the two companies to collaborate.
gepark@yna.co.kr
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