April 26, 2024

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[THE INVESTOR] YG Entertainment has secured a global growth momentum with Naver participating in its capital raise, said Hana Financial Investment on March 20, raising the target price to 36,000 won (US$31.89) from 33,000 won.

On March 17, Naver announced that it will participate in the entertainment company’s 50 billion won capital increase and invest an additional 50 billion won in its subsidiary YG Investment, becoming the second-largest shareholder with 9 percent stake. 

“It is a win-win for both as Naver will be able to make the most of YG’s content and production capabilities. It has secured global platforms such as V Live and Snow so that it can expand investment in content and heighten competitiveness,” said analyst Lee Gi-hun.

It is crucial for YG to expand its profit base at home and in Japan and Southeast Asia even if the THAAD issue prolongs, securing lead in content when it resumes operations in China, noted the analyst. 

YG is breaking its own record earnings in Japan, through its highly competitive artists, successful localization and sound partnership, said Lee.
By Hwang You-mee (glamazon@heraldcorp.com)