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K-Pop Record Label Cube Entertainment To Merge With IHQ And Go Public - Joins Korea's Big 3 Entertainment Companies

By James B | May 31, 2014 02:29 PM EDT

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Cube Entertainment formed a strategic partnership with iHQ last year (September 17, 2013) and are now specializing with the company's mission. The mission of iHQ is to become the top entertainment company in Korea. Also, to become a strong force in the global music industry.

The strategic alliance between the two was signed on September 17, 2013; Cube Entertainment's CEO, Hong Seung Sung and iHQ's chairman, Jung Hoon Tak were there to sign the document. Once both agreed, Cube Entertainment sold 9001 shares (50.01%); which is worth 16.5 billion KRW (15.2 billion USD). Both Cube Entertainment and iHQ will invest in each other's activities. CEO Hong Seung Sung will maintain his 28% stake to Cube Entertainment and iHQ will invest two billion KRW (1.8 billion USD).

On that day, a Cube Entertainment representative stated, "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 #1 company in the entertainment industry. This partnership will serve as the stepping stone for Cube Entertainment to succeed as a global multi-entertainment company." Then, iHQ's CEO stated soon after, "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."

With this alliance between the two, Cube Entertainment announced that they are going public. Since iHQ is listed on the KOSDAQ (Korean Securities Dealers Automated Quotations); which is the counterpart of the American NASDAQ, Cube will join the list with the other big three agencies (YG, SM, JYP Entertainment).

iHQ is a Woori SPAC (Special Purpose Acquisition Company) No2. Cube Entertainment and iHQ were able to secure an investment source and reinforce its music enterprise because Cube Entertainment is now listed on the KOSDAQ. Cube's market capitalization was forty-five billion won ($44 billion); while Woori SPAC No2, sixteen billion won ($15 million).

There is going to be a scheduled meeting with the stockholders in September; the merge between Cube Entertainment and iHQ will be finalized in October.

On other news, Sidus iHQ revealed on May 28th that female group 4Minute and BEAST's entertainment are now listed on the KOSDAQ. For this year, Cube Entertainment's plans are to release BEAST's second album and for them to do some promotions in Japan on the month of June. For 4Minute, the girls are currently doing promotions in Europe. Through collaborating with Universal Music, Cube Entertainment is expecting a profit of $4,000,000.

Cube Entertainment recently released the first episode of 'UNITED CUBE TV'; which G.NA is the host. G.NA will interview other Cube Entertainment idols and stars for the viewers who watches from around the world.

You can watch the first video below:

Photo Credit: starin.edaily.co.kr

Tagged :  Cube Entertainment, JYP Entertainment, SM Entertainment, YG Entertainment, Sidus iHQ, 4minute, BEAST, Universal Music, G.NA, UNITED CUBE TV

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