In February last year, Hybe lost a takeover bid of SM to South Korean social media giant Kakao, which currently holds about 40% of the company. The move also comes amid a separate long-running battle between Hybe and its sublabel ADOR, which manages girl group NewJeans. Hybe shares have plunged 13.66% since April 19, the last trading day before Hybe launched an audit into ADOR. Hybe is expected to replace ADOR CEO Min Hee Jin in an extraordinary general meeting on May 31 after she was accused of wanting to take the sublabel independent.