JYP Entertainment has sold 786,606 shares of Genie, a local music streaming service provider, for around 5.56 billion won (US$4.99 million), according to news reports on Nov. 8.
“We sold our stake in Genie to finance our new headquarters building,” a JYP Entertainment official was quoted as saying.
The firm has to reportedly spend around 30 billion won to establish its new headquarters in Seongnae-dong, Seoul.
JYP had acquired 786,607 shares of Genie in 2013 by converting the bonds that it bought a year before for 2.6 billion won. The price per share was 3,380 won at the time.
Industry watchers said the company seems to have chosen the best timing for maximizing profits, since the share price is now around 7,070 won. The stocks never closed higher than 7,000 won during the second quarter.
The entertainment firm decided to sell its stocks during the second quarter also as the contract between both companies expires in November, according to reports.
Although Genie is the second biggest music streaming service firm here, it has been continuously losing ground to Melon, which accounts for over 60 percent market share. Industry sources say that JYP is unlikely to renew its contract.
The Korean entertainment firm is left with one share of Genie. This was not sold as JYP CEO Jung Wook is a director of Genie, reports said.
By Song Seung-hyun (email@example.com)