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Cube Entertainment Joins Forces With iHQ, Vies For #1 Spot In K-Pop Industry

By Staff Reporter | September 17, 2013 09:19 AM EDT

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Perhaps taking a page from SM, Cube Entertainment has announced a strategic partnership with holding company iHQ in an effort to bolster revenue and earning potential to become a much stronger force in the global music industry.

On September 17, Cube Entertainment's CEO and founder Hong Seung Seong and iHQ's chairman Jung Hoon Tak signed an alliance agreement that shifted 9,001 shares (50.01%) of the entertainment company's stock to iHQ.

A Cube Entertainment rep explained via a press release, "The partnership between music market's strong force Cube Entertainment and strong force in the field of drama, film production and management iHQ, will give us the chance to become the number one company in the entertainment industry."

Jung Hoon Tak reiterated the sentiment of Cube by expressing, "iHQ's first large-scale strategic alliance project with Cube Entertainment will strengthen the global music business and iHQ will work hard to become a premier content syndication group in Korea."

According to an official statement released by Cube Entertainment on Tuesday regarding the deal, the stocks were sold to iHQ for 16.5 billion Korean won, or approximately 15.1 million US dollars.

Universal Music formerly held the largest stake in Cube, and now retains 11% of the company's stock while Hong Seung Seong continues to hold 28%.

Additionally, in accordance with the agreement between the two companies, they will invest and in each other's activities - beginning with Cube's CEO putting 2 billion KRW (roughly 1.8 million USD) into iHQ's convertible bonds.

"This partnership will serve as the stepping stone for Cube Entertainment to succeed as a global multi-entertainment company," summarized a statement from the label.

Cube is currently ranked number four in the Korean music market behind the 'Big 3' SM, YG, and JYP Entertainment. The new partnership seeks to increase the company's influence not just in South Korea, but around the world.

Cube Entertainment currently represents top idols 4Minute, B2ST, BTOB and G.Na as well as iconic K-Pop star Rain under its subsidiary firm Cube DC.

Jay Park and rookie girl group 2EYES are included in iHQ's roster of entertainers (under the label Sidus HQ) and the company is expected to debut a new boy band later this fall.

Both companies' leaders have extensive industry know-how with Jung having been instrumental in the career of K-Pop legend Cho Yong Pil as well as first-generation idol group g.o.d, and Hong having not only discovered Park Jin Young, but also co-founded JYP Entertainment with him.

Now that Cube and iHQ have teamed up, fans can look forward to a increase in international promotions from the companies' popular groups and top stars.

Tagged :  Cube Entertainment

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