The move comes as China is widely expected to lift its nearly decade-old unofficial ban on K-pop performances in mainland China. That potentially opens South Korean companies such as SM Entertainment to resume music distribution through the relationship with Tencent.
A Tencent Holdings subsidiary is snapping up a nearly 10% stake in SM Entertainment Co valued at about US$180 million, marking a rare Chinese investment into a South Korean company in recent years.
Tencent Music Entertainment Group, which is controlled by Tencent, will buy the stake from BTS-agency Hybe Co, which is selling its remaining 2.2 million shares in SM Entertainment at 110,000 won each, a 15.3% discount to Tuesday’s close, according to a regulatory filing.
