They're getting loans off the capital BTS built for the company. Now they are scrambling to find ways to fill in the revenue void BTS will leave in the next two years. They will be in debt but since other Hybe groups have ended BTS, they should be able to make back the almost $1.3B they are about to spend in less than six months by the end of this year.

Quote from paradis

They will be safe as long as BTS renew

You already know my thoughts on this but I hope their lawyers are seeing all this and thinking about what's best for BTS. That's all I can say and hope for.

why is everyone assuming SM needs money?

the ownership is changing hands, just that

All the money BTS earned . Plenty of spare cash.

While spending nothing on the individual efforts.

When JHope showed up in the show run by the person on the left of this post, that was a big sign.

When even bts-related side hussles like BT21 makes more money than most kpop groups & you barely spend anything on the people that made u that money, you'll have a lot of spare money you can waste away.

I feel like they r in debt. Sometimes am concerned how they r spending it. They r throwing desperately to maintain relevance after bts.

The sm thing is more of monopoly to prevent kakao presence.

Quote from loneranger1

why is everyone assuming SM needs money?

the ownership is changing hands, just that

SM doesn't need money, but Hybe does. They need more money so they can buy LSM shares which is why they are taking loans.

time will tell

SM about to disintegrate

Hybe about to drop 1 billion on dust

Quote from Jasmine_Waters

They're getting loans off the capital BTS built for the company. Now they are scrambling to find ways to fill in the revenue void BTS will leave in the next two years. They will be in debt but since other Hybe groups have ended BTS, they should be able to make back the almost $1.3B they are about to spend in less than six months by the end of this year.

Since HYBE had spent so much money, I wonder what they'll release next after that 275 USD album, and that 3k USD gold anniversary medal...

yes

/thread

Quote from Kitty_Saurus

Since HYBE had spent so much money, I wonder what they'll release next after that 275 USD album, the 3k USD gold anniversary medal...

Not our problem anymore. I know we will still fund their debt because of our love for BTS' individual solo careers but that's about all the dependence they will get from ARMY. Other groups are already filling in the void and if this SM nightmare goes through and somehow is not an empty shell with SM acts still housed, then they will also fill the void too. Everyone gets to fill in the void and ARMY can go about ignoring BigHit/Hybe for the remainder of all of next year or until BTS comes back/not with Hybe anymore.

I imagine they know what they're doing and maybe Scooter working his magic at Hybe America will help with whatever that does for the books in the long run. Scooter is an ass (although Bang PD seems to have reigned him in) but he's very good at what he does. I think as long as they don't pull a Yahoo!, it should probably work out.

Lol. This might be a shade to some people but they still have those 7 golden geese. Suga alone is doing Prudential center, the same venue that the 2nd biggest kpop act used for their most recent tour. So, They will probably be fine if they can hold onto them.

2025 BTS global stadium tour.

Quote from pchromo4

2025 BTS global stadium tour.

the bloodbath that will happen for tickets

& the money made for hybe will be a LOT

im starting to save money already for floor tx.

Hybe's Debt-to-equity is extremely high. Just in the last week they've spent $600 million on a small hip-hop label in the US and a 15% stake in SM.

They've gone into high debt buying small labels like Pledis over the years.

For example, YG's Debt-to-Equity is 2.9%, which is really good.

Hybe is 30.8%.

A healthy ratio is around 6% or lower.

So Hybe's debt is extremely alarming.

Hybe has also never paid a dividend to stock holders, YG and JYP have every year except 1. So again, not good.

Also this article came out today.

Hybe's tender offer to SM minority owners just got more expensive and I doubt they'll have the ability to match and the offer is going to get rejected.

SM share price surpasses 130,000 won... Hive tender offer price likely to rise

Reporter Lee Jae-bin2023-02-16 16:05

The meaning of the 120,000 won tender offer disappears as the stock price soars

Excluding transfer tax for tender offer, the average is in the mid-110,000 won range

Kakao's 140,000 won tender offer Hive is in trouble when it counterattacks

When the tender offer fails, the fight for equity... A boon for minority shareholders

As SM's stock price soared, a red flag was turned on for Hive's stock tender offer. In order for Hive to successfully secure a stake in SM, the tender offer price must be raised to more than the previously suggested 120,000 won, but it is difficult without additional financing. Conversely, if Kakao makes a tender offer, Hive's plan to secure a stake through a tender offer is highly likely to fail completely. If the stock price continues to rise, it is expected that the two sides will enter into a showdown through a shareholder-friendly proposal rather than a tender offer.

According to the Korea Exchange on the 16th, SM stock price closed at 131,900 won, up 9,300 won (7.59%) from the previous day. The stock price, which started at 124,900 won, up 2,300 won (1.88%) from the previous day (122,600 won), rose to 133,600 won during the day, soaring nearly 10%.

As the stock price soared, the emergency light was on for Hive. Previously, on the 10th, Hive announced that it would acquire 3,423,420 shares owned by Lee Soo-man, SM's largest shareholder, at 120,000 won per share, and would make a tender offer for up to 5,951,826 shares at the same price. The total acquisition amount is 422.81 billion won and 714.2 billion 19.12 million won, respectively, for a total of 1.137 trillion won. The problem is that as the share price exceeded 120,000 won, the possibility of individual investors responding to the tender offer is rapidly decreasing. If the share price exceeds 120,000 won by March 1, the deadline for the tender offer, individual investors are unlikely to respond.

In addition, CEO Lee claimed that in the new year, Lee Soo-man put his aides at the forefront and demanded ▲ announcing a statement that the artist needed Soo-man Lee ▲ a contract with CTP for an overseas production album ▲ and devising measures to delay the release of the album after April.

It was also revealed that the comeback of the girl group Espa was delayed because of Lee Soo-man's interest in tree planting.

Representative Lee said, “Aespa’s new album was scheduled to be released on February 20th.” “Lee Soo-man, by the way, told the A&R (Artist and Repertory) team and Director Yoo Young-jin that all major songs from SM had to plant trees in the lyrics and sustainability. (Sustainability) and ESG (Environmental Social Governance).”

He then said, "I ordered to sing a song with lyrics that project tree planting that does not suit the group aespa with a well-crafted worldview." ', 'Co-existence', 'Greenism' were included, and the word 'planting a tree' appeared directly in the lyrics at an early stage, making the members of the Espa upset and emotional."

Representative Lee explained, however, that he had requested that the direct word 'planting a tree' be omitted. However, with such unreasonable instructions, 'no one can sympathize'

CEO Lee said, "Behind the message of tree planting, sustainability, and ESG, and the call for new market development and cultural exchange, there is Lee Soo-man's desire for real estate business rights." “It was only possible through this, so there was a situation where we had to coordinate it,” he said.

CEO Lee said, "Now, we, SM, will start all over again. That's 'SM 3.0'. Please listen to our SM's music again."

Former Executive Producer Lee Soo-man has not yet released a position on this video.

HYBE is trying to fill the void made by the Biggest group they'll ever have since they're on hiatus by spending money promoting big and all but this only proves who needs who

Bighit / HYBE is in for some good $$$ if they make BTS tour solo one by one & i would pay whatever

as long as we get good Bangtan Sonyeondan solo promotions & activities then im good