South Korean tech giant Kakao Corporation has become the largest shareholder of SM Entertainment after purchasing 35 percent of shares in the K-pop powerhouse through a tender offer.

Kakao announced on Tuesday that it, along with its entertainment unit Kakao Entertainment, bought over eight-point-33 million, or 34-point-97 percent of SM shares at 150-thousand won each between March 7 and 26.

Having previously held four-point-nine percent of SM shares together, Kakao and its entertainment unit now hold 39-point-87 percent of the company’s shares following the public purchase.

SM's second-largest shareholder is the management agency of K-pop superstars BTS, Hybe, which had unsuccessfully attempted to gain control through a tender offer to add to the 14-point-eight percent of shares purchased from SM founder Lee Soo-man.