[THE INVESTOR] Bugs will acquire 70 percent stake in HOW Entertainment for 11 billion won (US$9.82 million) on Oct. 14, according to investment banking sources on Sept. 28.

The music portal service subsidiary of NHN Entertainment had announced the plan in August, saying that it will acquire 70 percent stake in the entertainment agency, with 11,951 existing shares and 6,390 shares to be issued for capital increase, to diversify its business to cover K-pop contents production, distribution and consumption.

HOW Entertainment was established in September 2015 and represents artists such as Hwang Chi-yeul, Mamamoo and Geeks. Its revenue in the first half of 2016 was 4.1 billion won.

 

An investor association, with Gemini Investment as the major member, will acquire 36 percent stake in Girl’s Day’s agency Dream T Entertainment for 7.78 billion won. The investment specialist, which also took over Line Entertainment last year, will finance 2.4 billion won.

Entertainment companies are also actively seeking merger and acquisitions. Signal Entertainment Group merged with LN Holdings and NH EMG in 2016. LN Holdings is the parent company of actors management firms Great Company, LN Company, Star Camp 202 and JR Entertainment. NH EMG represents singers and bands.

With hallyu still going strong, and getting popular in Europe and the US, the entertainment industry will remain a high added value industry and attract more investors from in and out of the industry, said an investment banking source.

By Hwang You-mee (glamazon@heraldcorp.com)