“HYBE is Lee Soo Man’s savior, not SM’s.”
As SM Leisure founder Lee Soo Man and the corporate’s present administration go head-to-head, new CEO Lee Sung Soo has been releasing movies that severely criticize Lee Soo Man’s administration. Beforehand, on February 16, 2023, Lee Sung Soo launched a video exposé that accused Lee Soo Man of mismanagement, embezzlement and tax evasion. Lee Sung Soo addressed his late aunt’s husband Lee Soo Man, in a brand new video printed February 17, 2023.
He requested Lee Soo Man to cease and beg for forgiveness and defined why the HYBE M&A was “hostile.”
Instructor. Please cease now. Please now, kneel in entrance of everybody and ask for his or her forgiveness, together with me. I hope you realize that that is the one approach that I, as your pupil, can prevent from the Valley of Hell. Now, come out of that place, escape from the gang of eunuchs, undergo your KWANGYA, and return to your loved ones as soon as extra. And what you’ve at all times preached, “Be Humble, Be Type, Be the Love,” I’ll pray collectively which you can put this into motion for the remainder of your life.
— Lee Sung Soo
https://www.youtube.com/watch?v=SZbLLyyuCAY
He forged doubt on the way in which that HYBE selected to enter SM Leisure.
Let me ask just a few inquiries to HYBE.
1. Is it not a hostile M&A if HYBE buys up a majority of the shares by means of a public acquisition with none prior dialogue with any of the SM Leisure administrators or administration?
2. Is shouldn’t be a hostile M&A if Lee Soo Man advisable seven registered administrators on February 15 by means of a shareholders proposal if three on the checklist are in-house members?
3. A deal of 1 trillion received ₩1.00 trillion KRW (about $775 million USD) with none due diligence. Isn’t that the textbook type of a hostile M&A?
Yet one more.
4. Via media stories you mentioned that you’d introduce a coverage that allocates lower than 30% of revenue. HYBE has by no means paid out money dividends since its institution. What proportion of its web revenue will you propose to pay shareholders the 12 months?
5. In your shareholders proposal, you separated your organization’s CEO and the chairman of the board of administrators, when you elected a md that isn’t your in-house director. Who’s HYBE’s present chairman of the board of direcotrs? Are they an exterior director?
6. In your shareholders proposal, you requested us to introduce digital voting as a part of a change within the firm’s articles of affiliation. Are you attempting to introduce digital voting by means of the corporate’s articles of affiliation? HYBE submitted the proposal by means of Lee Soo Man. You mentioned that you’d respect SM’s model and IP, and also you had been so assured in asserting that you wouldn’t place creators and producers with leisure expertise within the candidate checklist of administrators. An leisure firm’s identification shouldn’t be solely created from IP. SM is an authorized firm, and a listed one with shareholders. Now we have already determined to observe the needs of the shareholders, and have begun a serious overhaul in all areas, together with clear administration and governance. Now we have fashioned a worldwide advisory physique and have a bunch of authorized consultants we’ll seek the advice of with as we step up preparations to open a very new, SM ver3.0.
We thanks in your concern however your advice of seven administrators appears to solely be meant to erase SM Leisure and make it a subsidiary of HYBE, though you say that you just help our unbiased administration.
— Lee Sung Soo
He concluded by asking HYBE to halt of their tracks, and requested for wholesome competitors as a substitute of monopoly.
HYBE is Lee Soo Man’s savior, not SM’s. I feel tradition can not, and mustn’t, be monopolized. Respect for range is the elemental spirit of the tradition trade. Please halt your hostile M&A in order that K-Pop in Korea doesn’t change into monopolized. I hope that you’ll have a good-spirited competitors with the newly modified SM, and collectively, I hope that we’ll do job of introducing K-Pop to the world and develop the tradition. I’ll do all that’s in my energy to cease the M&A, which our employees are additionally in opposition to.
— Lee Sung Soo
Earlier within the day on February 17, a collective of 208 common employees from SM Leisure launched a joint assertion, voicing their help for Lee Sung Soo. In addition they termed the acquisition as hostile, claiming that they might attempt to shield the SM that Lee Soo Man deserted as a substitute. Examine it beneath.
SM Leisure Employees Members Specific Assist For Present CEOs Lee Sung Soo And Tak Younger Jun Via A Collective Assertion
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