YG Entertainment has just received a massive investment from one of China's largest internet companies.
Tencent, one of the major players in China's online, mobile, and ticketing market, has invested 100 billion won ($85 million) into YG Entertainment, home of some of K-pop's biggest stars.
According to YG on May 27, the agency's CEO Yang Hyun Suk will sign the contract with two high-ranking executives at Tencent. One is Suman Wang, head of video, film and drama, and the other is Ning Lin, founder of Weiying, a ticketing service that recently raised $105 million for its IPO.
Once the contract is signed, Tencent will receive $30 million worth of YG shares, while Weiying will receive $55 million worth of stock. With this deal, the two Chinese companies will become the third and fourth largest shareholders in YG Entertainment, holding 4.5 percent and 8.2 percent of total shares.
YG commented on deal, emphasizing the importance of expanding YG's influence in China, "For the past ten years, we have seen a 30 percent increase in sales. Through our partnership with Tencent and Weiying, we will be able to expand our artist's activities in China and be able to better meet the needs of local Chinese fans."