April 25, 2024

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[THE INVESTOR] South Korea’s leading entertainment agency iHQ on Dec. 19 denied speculations that it plans to sell Cube Entertainment, the agency behind K-pop signers HyunA and BTOB.

“The report that we are considering to sell stake in Cube Entertainment and hand over the management rights for the company is groundless,” Cube said in a regulatory filing. 

The rumor resurfaced after iHQ, which holds a 30.61 percent stake in the smaller label, suspended the sale procedures as talks with overseas potential buyers in China and Indonesia broke down this year.

It became the largest shareholder of Cube in 2013 after acquiring 50 percent stake for 16.5 billion won (US$13,9 million).

Cube shares have recently plunged on the news that one of its flagship boy band BEAST would leave the company to establish their own label. As of 11 a.m., Cube shares rose 0.22 percent to trade at 2,300 won.

Its business performance has been sluggish throughout 2016, logging an operating loss of 1.4 billion won and 14.7 billion won in revenue during the first three quarters.

The agency posted an operating profit of 800 million won and 22.4 billion won revenue in 2015.

By Park Han-na (hnpark@heraldcorp.com))