BTS Label Big Hit Entertainment Invests In YG

The business side of the music industry might be less glamourous but it is definitely interesting. In recent news, BTS‘s label Big Hit Entertainment is making strategic moves.

The company will be investing in competitor label YG Entertainment to boost its position in the K-pop world.

Rolling Money

Big Hit said on Wednesday January 27th, that it would invest 70 billion won ($63 million) in a subsidiary of agency YG Entertainment. This “strategic collaboration” means to create synergy by leveraging artist IPs in various ventures.

The company also said it would strengthen its fan community platform by joining forces with Naver. Big Hit is investing 354.8 billion won ($320 million) in beNX, their technology subsidiary. The third-party acquisition of Naver’s V LIVE division, will directly lead to a capital increase.

Big Hit In The Stock Market

The investment plan was decided after Big Hit went public on the South Korean stock exchange. While its shares initially struggled, falling more than 20% in the second day of trading after its initial IPO price of 135,000 won ($118), they closed at 207,500 won ($187) on Wednesday.

Big Hit has used its proprietary Weverse, a mobile app and web platform it launched in 2019, to build a massive global community for its content. Weverse hosts free and subscription multimedia content including BTS video content like the docu-series ‘Break The Silence’, which premiered exclusively on Weverse. The app has garnered vast popularity among fans as it allows also for artist-to-fan interaction. WeVerse had a total of 10 million downloads as of July last year.

If this move means more BTS, we are nothing but excited!

By: Anjana Sathyanarayan