Kakao Offers to Buy 35% of K-Pop Label SM to Fend Off Rival Hybe

Kakao Entertainment is offering to buy a significant stake in SM Entertainment, aiming to become the largest shareholder. They already own a small percentage and plan to increase it to 40% if successful. This move is part of a strategy to ensure stable management and partnership with SM. Meanwhile, Hive has a 20% stake and may engage in a pricing war to increase its influence. The next major event is the SM annual shareholders meeting, where both sides will present their strategies.

What are the implications of Kakao's statement regarding the management of SM Entertainment?

What is the significance of the upcoming SM's annual shareholders meeting?