One of South Korea’s biggest label companies YG Entertainment will sign an $85 million (100 billion won) investment deal with China’s Tencent and Weiying Technology on Tuesday, May 31 in Seoul's Hyatt Hotel.
The partnership with Tencent and Weiying would play a vital role to help advance the performance of the South Korean company, which has been doing very well in the past decade with a 30 percent increase in its sales.
“This partnership with Tencent and Weiying is the result of a year-long search for partnerships. We are planning to build joint ventures with China in the future and increase promotions and concerts in China for our artists,” YG said, according to Korean news site Soompi.
In the $85 million deal, $55 million will be coming from Weiying while the remaining $30 million will be provided by Tencent. The Chinese companies will have 4.5 percent and 8.2 percent of YG’s shares respectively.
“We want to work together with YG Entertainment in various businesses in music, concerts and entertainment,” said Tencent, the largest internet company in Asia.
On the other hand, Weiying stated that the fusion of the three companies would generate n “enormous synergy effects.”
Weiying is China’s largest mobile ticketing company.
The signing of the deal will be done by Yang Min Suk of YG, Suman Wang of Tencent and Ning Lin of Weiying.
YG Entertainment is one of the most prominent record label companies in the K-pop scene along with SM Entertainment and JYP Entertainment.
YG is responsible for internationally known K-pop acts like 2NE1, BIGBANG, and 2NE1.
