(Bloomberg) -- Hybe Co., manager of the South Korean sensation BTS, is jumping into the middle of a messy corporate battle, allying with the godfather of K-pop to hinder technology giant Kakao Corp.’s foray into the entertainment arena.

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Hybe launched a hostile bid for shares of SM Entertainment Co., coming to the aid of founder Lee Soo-man as he fights to block SM’s current management’s deal with Kakao, operator of Korea’s most popular messaging and social media service. That 217 billion won proposal — backed by activist shareholder Align Partners Capital Management — would have made Kakao the second-biggest shareholder in SM and diluted Lee’s control over the company.

Hybe, the No. 1 K-pop agency with New Jeans and other popular groups, said it will buy a 14.8% stake from Lee and offered to purchase another 25% in the agency from investors, according to filings on Friday. Hybe is offering 120,000 won per share, a 22% premium to closing price of SM on Thursday, for a total of 1.14 trillion won ($900 million).

SM executives issued a statement opposing the offer. Activist Align said the price is too low, given the agency’s expected growth in sales and profit, adding that Hybe should buy all shares in a tender off, to prevent a conflict of interest between shareholders of the two rival talent agencies.

SM’s shares soared 16% in Seoul, hitting an all-time high. Hybe rose more than 10% before it pared its gains to end down 1.5%%, while Kakao fell 4.7%%.

At stake are the futures of SM, the agency behind Girls’ Generation and Super Junior, as well as Kakao’s ambitions in the entertainment business.

SM’s deal with Kakao is widely seen as a step toward the internet giant’s eventual takeover of the agency. Kakao’s entertainment unit is weakest in K-pop, while Kakao’s platform would give SM artists a bigger audience and make them trendier, said Kim Hyunyong, an analyst at Hyundai Motor Securities.