Lee Soo Man and HYBE Labels are reportedly seeking to reacquire SM Entertainment.

According to reports, HYBE Labels may be making moves to acquire SM Entertainment alongside founder and former chairman Lee Soo Man. The rumors follows reports that Kakao might be looking to sell SME despite their official denial that they're doing so.

Industry insiders are also speculating that multiple companies aside from HYBE Labels are seeking to acquire SM after their deal to purchase the label reportedly fell through last year. Recent rumors now say HYBE chairman Bang Si Hyuk is personally approaching private equity funds with a proposal to buy SM. 

Other rumors state former SM Entertainment chairman Lee Soo Man is seeking to return to the label after selling 14.8% of his stake in SM Entertainment to HYBE. Gaming company NCSOFT, fashion company F&F, and American entertainment group MGM are also rumored to be seeking to acquire SME.

In related news, Kakao recently launched a forensic audit to remove the SM Entertainment executives who allegedly ousted Lee Soo Man.