Growing demand for Korean talent, fashion business opportunities propel deals
Luxury goods giant LVMH Wednesday disclosed plans to invest upward of $60 million in YG Entertainment, the South Korean talent management and music production group. The deal could expand to $80 million.
The company’s highest-profile clients include rapper Psy, boy band Big Bang and 2NE1.
LVMH’s L Capital Asia will pay 60 billion won ($59.7 million) for new preference shares, which can be converted into common stock in a year. The private equity firm is also in talks to buy a further $20 million of shares from the company’s founder, Yang Hyun-suk, the former music artiste who founded YG.
The move also heralds an unspecified joint venture between YG and L Capital, with many securities analysts predicting that YG will leverage its stars under management for a further push into the fashion and cosmetics industries.
With the ongoing boom in Korean TV and music across much of Asia, the talent agencies have seen their share prices revive in recent months. Chinese Internet portal Sohu.com recently paid $15 million for a stake in another management company, Keyeast, which represents Kim Soo-hyun, co-star of hit drama “My Love From the Star.”