HYBE , the company that manages the business of the famous K-pop youth group BTS, announced Sunday that it has given up on acquiring its competitor, SM Entertainment, ending a weeks-long battle over the company's management rights.

"In light of recent developments, Hype has discussed (...) these matters with Kakao and has reached an agreement to suspend the process of obtaining the rights to manage SM," Hype said in a statement.

Hype is competing with South Korean internet giant Kakao after it bought about 15 percent of SM from its founder Lee Soo-man last month, more than doubling the company's stock value in a month.

Hype explained its decision by the fact that the price of the acquisition of "SM" exceeded the fair range of the purchase price.

And "Hype" reported that the two companies "agreed in parallel to cooperate on issues related to their platforms."

SM expressed its relief with the decision and thanked the contributors, fans, staff and artists for their support "throughout the unexpectedly turbulent situation in recent weeks."

The company was founded by Lee Soo-man, who is considered the "father of K-pop" for being behind the launch of the first generation of artists.

But signs of a power struggle emerged when the co-CEOs of SM, including Lee Sung-Su, the founder's nephew, announced new plans for the company that excluded his uncle, prompting the latter to sell his shares to Hype.

This made Hype the majority shareholder in SM Entertainment. SM management considered this acquisition hostile and would put Hype in a monopolistic position, causing damage to the K-Pop industry, which has huge potential.

In an effort to regain control, SM sought the help of the South Korean company, Cocoa.

The technology group owns the most popular messaging apps in the country and was looking to buy a majority stake in the company to prevent Hype from taking over.