Universal Music sells off all their Cube Entertainment stocks
Universal Music has sold off their remaining shares in Cube Entertainment, ending their 7 year investment period in the company
Global music corporation Universal Music first invested into Cube Entertainment in 2010, securing a staggering 44.4% (8000) of Cube’s shares for only 1.6 billion won ($1.4 million). Universal would sell 6000 of their shares to iHQ inc., which currently does business under the moniker Sidus HQ, for 11.1 billion ($9.8 million) in 2013. Their remaining 2000 shares underwent a free share capital increase, turning Universal’s 2000 shares into 2 million shares.
On February 19, Universal sold their remaining 2 million shares for 1934 won each or a total of 3.86 billion won ($3.4 million). Universal has gained a net return of 13.2 billion won ($11.7 million) during this time, showing that their investment in Cube was definitely a successful one.
During Universal’s time as an investor, Cube Entertainment grew to become one of Korea’s representative artist agencies with BEAST, 4minute, BTOB, Apink, and G.NA all under their name. Apink was under Plan A Entertainment, a subsidiary of Cube until 2015 when LOEN Entertainment became the majority shareholder of the company, thus turning Plan A into a LOEN subsidiary.
Unfortunately, Cube Entertainment is in a difficult position right now. BEAST, 4minute, and G.NA are all no longer with the company, Jang Hyunseung has refused to join a re-creation of BEAST.
A representative from Cube Entertainment had this to say when asked about how things will change from 2016,
“Pentagon showed enough growth that they were able to advance to Japan promotions within 2 months of their debut. We are expecting growth compared to last year because all of our singers will be active in 2017.”
— Cube Entertainment
Source: Star News