Hybe, the global K-pop powerhouse and producer of superstar BTS, has announced its decision to halt its bid to take over industry giant SM Entertainment.

In a press release on Sunday, Hybe said that it will discontinue the acquisition process of SM in an agreement with social media giant Kakao Corp.

They added that it made the decision after observing signs of overheating in the market due to the competition with Kakao and its entertainment unit, Kakao Entertainment Corp.

Hybe said that Kakao and Kakao Entertainment will have management control over SM Entertainment, while Hybe will cooperate with Kakao in the platform business.

Kakao said separately that it will continue to buy the shares of SM through March 26 as planned.

The dramatic deal came after a weeks-long battle between Hybe and Kakao.