YG Entertainment may be looking to expand again as reports confirmed that the agency recently received a large investment from various Chinese companies. Those companies include China’s largest online giant Tencent and the online ticketing service Beijing Weiying Technology Co from whom YG received 100 billion won, or $85 million USD.
According to reports on May 27th, the CEO of YG Entertainment, Yang Min Suk, has plans on meeting with the CEOs of each respective companies, in Seoul at the Hyatt Hotel on the 31st to sign the necessary papers regarding the investment agreement. Under the agreement, YG will issue approximately $55 million of shares for the second-largest shareholder of Tencent, Weiying, while approximately $30 million shares owned by Yang Hyun Suk and CEO Yang Min Suk will be transferred to Tencent, making the two Chinese companies the agency’s third and fourth largest shareholders at 4.5% and 8.2% respectively.
The deal will make the two Chinese firms YG’s third- and fourth-largest shareholders, respectively, with 4.5 percent and 8.2 percent stakes in the company.
YG Entertainment released a statement saying, “Our company has seen a 30% increase in sales over the past 10 years, it was determined that to maintain that growth, expansion into China is important.
Through their partnership, YG Entertainment is looking to increase activities of their singers and actors in China as well as discover Chinese artists in the country.
Source: Jongang Ilbo