HYBE is the second-largest single shareholder in SM, following a failed bid to take over the company earlier this year.
HYBE, which owns nearly 9% of SM shares, decided to partner with SM after its failed bid take take control of the company. After HYBE acquired a 15% stake in SM from the company’s founder,, in February, a bidding war erupted between HYBE and South Korean tech company Kakao to take a controlling stake in SM. Kakao emerged the winner and has a 40% stake in SM. HYBE retained an 8.
SM artists have been using Kwangya Club, a similar social platform launched by SM in 2022. Weverse has become a crucial element of HYBE’s multi-faceted business for e-commerce, promoting its artists and building relationships with fans. HYBE has invested in foreign language translation tools and a new payments system for the platform called Weverse Jelly to purchase digital and physical goods at the Weverse Shop. In addition, HYBE runs an annual live event, Weverse Con Festival.
“We’re preparing to integrate Weverse and Weverse shop to offer seamless experiences for fans to stay on the platform and purchase artists, albums and official merch,” HYBE CEOsaid during the company’s Aug. 8 earnings call. “We are striving to enhance customer satisfaction including ongoing discussions with various overseas local delivery companies to improve global shipping service quality.”
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