[★BREAKING] Naver invests $50 million USD into YG Entertainment

Naver has announced they will be committing ₩100 billion KRW ($83.8 million USD) into YG Entertainment through an investment and private equity fund partnership.

YG Entertainment will receive a ₩50 billion KRW ($44.2 million USD) investment from Naver for 10% stake in the entertainment company. The investment will make Naver the second largest shareholder in YG Entertainment, after founder Yang Hyun-suk who owns 19.07%.

In addition, Naver will be launching a new private equity fund with YG Entertainment to invest in companies related to lifestyle, fashion, cosmetics, entertainment and the food & beverage sector. The new fund will receive another ₩50 billion KRW ($44.2 million USD) to invest in these companies.

YG Entertainment shares rose 3.20% after news of Naver’s investment was announced to the public, finishing at ₩29,000 KRW ($25.64 USD) per share.

The investment by Naver is the latest in a wave of investments YG Entertainment has received from major global brands. On August 20, 2014, Louis Vuitton’s investment arm also invested $60 million USD into YG Entertainment and was issued preferred shares. They also purchased another $20 million USD in shares directly from founder Yang Hyun Suk.

Soon afterward on May 31, 2016, Chinese social media giant Tencent and Weiying invested $85 million USD into YG Entertainment. They purchased $55 million USD in new shares and purchased $30 million USD in shares from Yang Hyun Suk and CEO Yang Min Suk.

Source: Variety, Pulse News and Dazed Digital