Big Hit Entertainment, the administration firm behind Ok-pop sensation BTS, is to make its first vital acquisition since going public in mid-October. It should inject $63 million (KRW70 billion) into YG Entertainment, the company that’s behind Blackpink, Treasure and recently-renewed brother and sister folks music act AKMU.
BHE and its media arm beNX will make investments KRW30 billion and KRW40 billion respectively in YG Plus, giving them a mixed 17.9% stake in the YG affiliate that focuses on music distribution and merchandising.
YG Plus is predicted to assist BHE with distribution and merchandize actions, whereas beNX will open its Weverse social media platform and Weverse Store to YG Plus acts.
Hailing the transfer as a “strategic partnership,” BHE mentioned: “We glance ahead to the synergy that YG Plus, which has a strong community in numerous fields similar to distribution and merchandising manufacturing, and Big Hit and beNX, that are robust in artist mental property and platforms.”
In separate announcement, Korean web search and social media large Naver Company mentioned that it’ll make investments $319 million (KRW355 billion) into beNX. On the similar time, beNX will quickly change its title to Weverse, its most notable creation to date.
The flurry of company strikes comply with a strong 35% rally in BHE inventory since 18 Jan. 2021, and to 54% above the worth at which it bought its new shares in October. The share value surge lifts BHE’s market capitalization to $6.69 billion (KRW7.39 trillion).
The strikes do little to diversify BHE from its heavy dependence on BTS. That can solely occur when BHE establishes a wider secure of performers both by acquisition or profitable new launches (or when BTS loses steam). Pre-IPO, BHE purchased Supply Music, house to GFriend, in 2019 and Pledis Entertainment, with acts together with NU’EST and Seventeen, in mid 2020.
This yr is forecast to be a very busy one for brand new band launches from all the main businesses. Some acts will emanate from TV expertise exhibits and others from the businesses’ personal long-tern expertise administration applications. In 2021, BHE is predicted to launch a boy band that targets the Japanese market and in addition its first lady group in some 9 years.