[THE INVESTOR] Korean private equity firm STIC Investments has recently signed a share purchase deal worth 104 billion won (US$90.90 million) with Big Hit Entertainment, the agency behind K-pop sensation BTS, according to The Bell on Oct. 11.
It is the first time for Big Hit to attract investments from a PEF. Its early investors were mostly venture capitalists, including SV Investment. The exact amount of shares purchased was not disclosed.
Korean mobile game maker Netmarble in April acquired a 25.71 percent stake in Big Hit for 201.4 billion won based on its estimated market cap of 800 billion won. Now its market value is believed to have exceeded 1 trillion won.
Industry watchers predict another upbeat year for Big Hit, largely buoyed by BTS’ global success. Last year, the firm posted revenue and operating profit of 92.4 billion won and 32.5 billion won, respectively. This year, the figures are widely expected to more than double to 230 billion won and 83 billion won.
By Lee Ji-yoon (firstname.lastname@example.org)