TME(US:TME) 券商中国·2025-05-27 23:23Core Viewpoint - Tencent Music is set to become the second-largest shareholder of SM Entertainment after acquiring all shares held by HYBE for approximately 243.3 billion KRW (about 1.29 billion RMB) [1][2]. Group 1: Transaction Details - HYBE will sell its entire stake in SM Entertainment to Tencent Music's Hong Kong entity, with the transaction valued at around 243.3 billion KRW [1][2]. - Following the completion of this transaction, HYBE will completely withdraw its investment in SM Entertainment, while Tencent Music will become the second-largest shareholder, following Kakao [1][2]. Group 2: Background on SM Entertainment - SM Entertainment is a major player in the South Korean entertainment industry, managing numerous well-known artists such as TVXQ, Super Junior, Girls' Generation, EXO, Red Velvet, and aespa [1][2][3]. - The company was founded in 1995 by Lee Soo-man and is headquartered in Seoul, South Korea, with Zhang Zhe-he as the current CEO [2][3]. Group 3: Tencent Music's Performance - Tencent Music reported a total revenue of 28.4 billion RMB for 2024, reflecting a year-on-year growth of 2.3%, and an adjusted net profit of 8.14 billion RMB, up 30.7% [4]. - In Q1 2024, Tencent Music achieved a total revenue of 7.36 billion RMB, a year-on-year increase of 8.7%, with an adjusted net profit of 2.23 billion RMB, growing by 22.8% [4]. - The online music service revenue in Q1 2024 rose by 15.9% to 5.8 billion RMB, with the number of paying users increasing by 8.3% to 122.9 million [4].