Korea’s Hybe Completes Purchase of 14.8% Stake in Rival SM

A logo of SM Entertainment is seen at its headquarters in Seoul, South Korea, Monday, Feb. 20, 2023. (AP)
A logo of SM Entertainment is seen at its headquarters in Seoul, South Korea, Monday, Feb. 20, 2023. (AP)
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Korea’s Hybe Completes Purchase of 14.8% Stake in Rival SM

A logo of SM Entertainment is seen at its headquarters in Seoul, South Korea, Monday, Feb. 20, 2023. (AP)
A logo of SM Entertainment is seen at its headquarters in Seoul, South Korea, Monday, Feb. 20, 2023. (AP)

Hybe, the South Korean entertainment company behind K-pop sensation BTS, said Wednesday that it has completed its acquisition of a 14.8% stake in rival SM Entertainment, making it SM’s largest single shareholder.

The acquisition was finalized even as SM Entertainment accused Hybe staging a hostile takeover to control the firm by purchasing shares from Lee Soo-man, SM’s founder. Lee's influence in the firm has waned after an activist fund successfully campaigned for stricter oversight of its corporate governance.

Hybe earlier said it plans to purchase a further 25% of SM shares from investors at 120,000 won per share, which would take its total stake to almost 40%.

In an open letter to “fans, artists, employees and shareholders” of SM Entertainment on Wednesday, Hybe CEO Park Jiwon said that SM will move to become a company with a “transparent governance structure that prioritizes shareholder value.”

SM will be given “complete autonomy” when it comes to creative work akin to the other labels operated by Hybe, he said.

He said Hybe would also actively support SM artists’ endeavors. SM is behind popular K-pop acts such as boy-group NCT and girl-group aespa.

On Monday, SM’s CFO Jang Cheol-hyuk published a YouTube video criticizing Hybe’s takeover bid, arguing that such a move would lead to a monopolization of the industry, rising costs for fans. SM’s artists might be at a disadvantage to Hybe’s artists, he said.

Combined, both SM and Hybe account for 70% of revenues from albums and digital music in the K-pop industry.

“A lot of indicators of market share imply that HYBE’s acquisition of SM will undermine fair competition, which clearly shows that this acquisition is unfair,” Jang said. “Ultimately, K-pop fans will be the ones that will be most affected by the monopoly.”

Hybe’s bid for a bigger stake in SM came days after technology firm Kakao Corp said it would buy a 9.05% stake in SM through a rights offering and convertible shares and become a strategic partner of SM. SM had planned to expand its IP monetization and leverage Kakao’s messaging, social and entertainment platforms.



When Did Disney Villains Stop Being So Villainous? New Show Suggests They May Just Be Misunderstood

An actor portraying Captain Hook from Peter Pan performs on a float during the Festival of Fantasy Parade at Magic Kingdom Park at Walt Disney World Resort in Lake Buena Vista, Fla., Monday, April 18, 2022. (AP)
An actor portraying Captain Hook from Peter Pan performs on a float during the Festival of Fantasy Parade at Magic Kingdom Park at Walt Disney World Resort in Lake Buena Vista, Fla., Monday, April 18, 2022. (AP)
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When Did Disney Villains Stop Being So Villainous? New Show Suggests They May Just Be Misunderstood

An actor portraying Captain Hook from Peter Pan performs on a float during the Festival of Fantasy Parade at Magic Kingdom Park at Walt Disney World Resort in Lake Buena Vista, Fla., Monday, April 18, 2022. (AP)
An actor portraying Captain Hook from Peter Pan performs on a float during the Festival of Fantasy Parade at Magic Kingdom Park at Walt Disney World Resort in Lake Buena Vista, Fla., Monday, April 18, 2022. (AP)

Cruella de Vil wanted to turn Dalmatian puppies into fur coats, Captain Hook tried to bomb Peter Pan and Maleficent issued a curse of early death for Aurora.

But wait, maybe these Disney villains were just misunderstood? That's the premise of a new musical show at Walt Disney World that has some people wondering: When did Disney's villains stop wanting to be so ... villainous?

The live show, "Disney Villains: Unfairly Ever After," debuts May 27 at Disney's Hollywood Studios park at the Orlando, Florida, resort. In the show, the three baddies of old-school Disney movies plead their cases before an audience that they are the most misunderstood villains of them all.

"We wanted to tell a story that's a little different than what's been told before: Which one of them has been treated the most unfairly ever after?" Mark Renfrow, a creative director of the show, said in a promotional video.

That hook - the narrative kind, not the captain - is scratching some Disney observers the wrong way.

"I think it's wonderful when you still have stories where villains are purely villainous," said Benjamin Murphy, a professor of philosophy and religious studies at Florida State University's campus in Panama. "When you have villains reveling in their evil, it can be amusing and satisfying."

Disney has some precedent for putting villains in a sympathetic light, or at least explaining how they got to be so evil. The 2021 film, "Cruella," for instance, presents a backstory for the dog-hater played by actor Emma Stone that blames her villainy on her birth mother never wanting her.

Other veins of pop culture have rethought villains too, perhaps none more famously than the book, theatrical musical and movie versions of "Wicked," the reinterpretation of the Wicked Witch of the West character from "The Wonderful Wizard of Oz."

The blockbuster success of "Wicked, " which was based on the 1995 novel "Wicked: The Life and Times of the Wicked Witch of the West," sparked the trend of rethinking villains in popular entertainment, Murphy said.

"With trends like that, the formula is repeated and repeated until it's very predictable: Take a villain and make them sympathetic," he said.

The centuries-old fairy tales upon which several Disney movies are based historically were meant to teach children a lesson, whether it was not to get close to wolves (Little Red Riding Hood, The Three Little Pigs) or trust strange, old women in the woods (Hansel and Gretel, Rapunzel).

But they often made marginalized people into villains - older women, people of color or those on the lower socioeconomic scale, said Rebecca Rowe, an assistant professor of children's literature at Texas A&M University-Commerce.

The trend toward making villains more sympathetic started in the late 1980s and 1990s as children's media took off. There was a desire to present villains in a manner that was more complicated and less black and white, as there was an overall cultural push toward emphasizing acceptance, she said.

"The problem is everyone has swung so hard into that message, that we have kind of lost the villainous villains," Rowe said. "There is value in the villainous villains. There are people who just do evil things. Sometimes there is a reason for it, but sometimes not. Just because there is a reason doesn't mean it negates the harm."

Whether it's good for children to identify with villains is complicated. There is a chance they adopt the villains' traits if it's what they identify with, but then some scholars believe it's not a bad thing for children to empathize with characters who often are part of marginalized communities, Rowe said.

The Disney villains also tend to appeal to adults more than children. They also appreciate the villains' campiness, with some "Disney princesses" gladly graduating into "evil queens."

Erik Paul, an Orlando resident who has had a year-round pass to Disney World for the past decade, isn't particularly fond of the villains, but understands why Disney would want to frame them in a more sympathetic light in a show dedicated just to them.

"I know friends who go to Hollywood Studios mainly to see the villain-related activities," Paul said. "Maybe that's why people like the villains because they feel misunderstood as well, and they feel a kinship to the villains."