Bang Si-hyuk said in an interview with CNN, “It’s not a hostile M&A to acquire SM…I followed due process.”
In an interview with CNN, Bang Si-hyuk, chairman of Hive, stressed that Hive’s attempt to acquire SM Entertainment (SM) is not a hostile M&A.
In an interview with CNN anchor Richard Quest released on the 3rd, Chairman Bang Si-hyuk mentioned industry concerns that Hive is trying to monopolize K-pop through the acquisition of SM, saying, “First of all, I think we need to correct the part that we are trying to take all the industry.” Misinformation is circulating in the market,” he said.
Chairman Bang said, “There is a lot of talk that there will be a great oligopoly in the music market. “In fact, we have to analyze where the album is sold,” he said. “It seems to be sold in the Korean market, but if we exclude the volume going abroad through delivery agencies, it is difficult to become an absolute monopoly even if SM and Hive combine all the volumes sold in Korea.”
Regarding SM management’s expression of ‘hostile M&A’, Chairman Bang said, “I think we need to organize the terms well,” adding, “Basically, it is called hostile M&A when the company is buried in the market against the will of major shareholders and oligopolistic shareholders.” “We took over through due process, and I think it’s a propaganda term to define it as hostile M&A,” he countered. On the contrary, he pointed out, “On the contrary, it is a serious problem for the management team to run a distributed and occupied company without a major shareholder.”
He said, “It is not important whether we take 40% of SM’s stake or not, but the most important thing is the regular shareholders’ meeting of SM,” adding, “We need to actually get support at the ‘shareholders’ meeting to form the board we want.”
Chairman Bang said, “I have long been sad that a good company like SM does not have a good governance structure,” adding, “We have solved most of the governance problems through this stake acquisition.” Hive helps us become a good company only in the management process without touching artist autonomy. Many people expect the effect of Hive’s acquisition of SM. “There was no impression that I could not accept or felt bad from the perspective of corporate sentiment,” he claimed.
Meanwhile, it is the first time that Chairman Bang has expressed his position on the acquisition of SM since a joint statement made with Lee Soo-man on the day of the announcement of the stake acquisition on February 10.