[THE INVESTOR] Korean entertainment giant CJ ENM on Aug. 1 said that it plans to establish a joint venture, tentatively named Belief, with popular boy band BTS’ agency Big Hit Entertainment.
“It is true that we have agreed to establish a JV, but there are still some steps left before launching the new entity,” a CJ ENM spokesperson told The Investor.
According to earlier news reports, CJ ENM and Bit Hit will have a 52 percent and 48 percent stake in the new firm, respectively. Its launch could come as early as next month following regulatory approval from the Korea Fair Trade Commission, the nation’s antitrust watchdog. The reports also said a global audition program could be their first collaboration project.
Big Hit’s know-how from nurturing the global sensation BTS and CJ ENM’s retailing power in the music industry are largely expected to produce powerful synergies.
Big Hit has become one of the major players in the entertainment industry here since BTS topped the US Billboard 200 chart in May. Its founder and CEO Bang Si-hyuk has also hinted at the firm’s imminent stock debut as part of its global expansion. Last year, the firm is estimated to have posted 92.4 billion won (US$82.42 million) in sales and 32.5 billion won operating profit.
By Song Seung-hyun (firstname.lastname@example.org)