Tencent, Weiying To Invest $85M In Korea’s YG Entertainment


China’s Tencent Holding Ltd. and its online ticketing arm Weiying Technology has agreed to make a US$85 million strategic investment in Korean entertainment firm YG Entertainment, according to a company announcement.

YG Entertainment plans to issue new common shares amounting to US$55 million to a wholly owned subsidiary of Tencent and Fengying. At the same time, the two investors decided to buy US$30 million in aggregate from YG’s largest shareholder, Hyun-Suk Yang and its CEO, Min-Suk Yang.

Weiying Technology and Tencent will respectively invest US$55 million and US$30 million and hold 8.2% and 4.5% in YG, becoming the third and fourth largest shareholders of YG after L Capital Asia, the investment arm of LVMH Group.

An investment agreement is scheduled to be signed on May 31 by Suman Wang, general manager of Film/Drama Department and editor in chief of Tencent Video and Lin Ning, CEO of Weiying Technology.

The three parties also have plans to establish a joint venture in China to promote YG artists, actors and actresses.

YG and QQ Music already have an exclusive content partnership.

Weiying just completed a RMB4.5 billion (US$694 million) series C+ round in Weiying in April.

CMC Holdings, Chinese mobile gaming firm iDreamSky, Everbright Financial Holding Asset Management Co., Ltd. and Ocean Capital Group Co., Ltd are Weiying’s other backers.

 
China Expert network

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