Another joint investment between YG & Big Hit ?

  • Actually this started with BH and Kiswe in September, the other two are just joining now. It is probably motivated by huge costs of hosting that kind of events by third parties like Youtube. Some of you were mad at me about my comment about that YG group concert... well as you can see they dropped YT as soon as possible.


    I think it's just agreement between YG&BH , BH also invest in YG's project.

    something like if I do this you will do that in return etc.


  • I think it's just agreement between YG&BH , BH also invest in YG's project.

    something like if I do this you will do that in return etc.

    BH didn't invest in YG project, BH bought shares in YG Plus (which was previously known as Pheonix Holdings Inc, and was bought by YG and renamed) to get something out of it. They did it probably because it's clear as day BH wants to eliminate all middle men costs. Setting up their own distribution infrastructure would take time and lots of money so BH buying shares in company that do just what they need is pretty smart. Dreamus was taking a lot of money for distributing BH artist albums, so when BH has shares with company that does this they save millions on just cutting of middle men.


    This is pretty similar with YG getting into BH/Kiswe project. They don't want to pay crazy money to YT or other platform, because it drastically decrease their profit. With getting into this , they won't have to pay, so their profit will be bigger or exist least.

  • BH didn't invest in YG project, BH bought shares in YG Plus (which was previously known as Pheonix Holdings Inc, and was bought by YG and renamed) to get something out of it. They did it probably because it's clear as day BH wants to eliminate all middle men costs. Setting up their own distribution infrastructure would take time and lots of money so BH buying shares in company that do just what they need is pretty smart. Dreamus was taking a lot of money for distributing BH artist albums, so when BH has shares with company that does this they save millions on just cutting of middle men.


    This is pretty similar with YG getting into BH/Kiswe project. They don't want to pay crazy money to YT or other platform, because it drastically decrease their profit. With getting into this , they won't have to pay, so their profit will be bigger or exist least.

    that and this :wellr:


    YG's project since 2015


  • Let me just humor you. And by soon, when exactly is that? 2021,2022 or in ten years time?


    People really out here thinking YGE is Pledis and Source.

    Soon I imagine to be within the next 5+ years. YG will be part of the unstopable Big Hit machine as will many more I'm sure in the future.


    You can talk about it not being Pledis, but in reality all of it's assets are a tiny fraction of the value of BH currently and the liquid cash in the company is enormous. The Suk's own around 22% of the companies shares, 10% is Naver and about another 9-11% is owned by Chinese companies, around 45% of the company is held by smaller holders Big Hit would only need to acquire 18% of those shares to become the majority shareholder in the company. Those shares are worth about 140-150 million at the trading price, obviously they wouldn't sell at that price directly but likely much higher if BH wanted to buy them outright.


    But even at triple that value and assuming nothing happens again in the Asian market to tank the shae price like we saw in 2020 that's still reasonably attainable for a company with a valuation currently close to 8bn right now who routinely turn over revenue in the hundreds of millions annually.

  • Soon I imagine to be within the next 5+ years. YG will be part of the unstopable Big Hit machine as will many more I'm sure in the future.


    You can talk about it not being Pledis, but in reality all of it's assets are a tiny fraction of the value of BH currently and the liquid cash in the company is enormous. The Suk's own around 22% of the companies shares, 10% is Naver and about another 9-11% is owned by Chinese companies, around 45% of the company is held by smaller holders Big Hit would only need to acquire 18% of those shares to become the majority shareholder in the company. Those shares are worth about 140-150 million at the trading price, obviously they wouldn't sell at that price directly but likely much higher if BH wanted to buy them outright.


    But even at triple that value and assuming nothing happens again in the Asian market to tank the shae price like we saw in 2020 that's still reasonably attainable for a company with a valuation currently close to 8bn right now who routinely turn over revenue in the hundreds of millions annually.

    Feels like I spend a majority of my time correcting Kpop fans about stuff like this.


    No BH could not buy YG for several reasons. But simply put, they couldn't afford it. YG's assets are at half a billion $. With low liabilities at about 5% assets to liabilities.

    BH has enormous debt and liabilities at over half a billion $ and 43% assets to liabilities, which is pretty high.

    As you can see BH needed YG to invest in this new venture 'Venew'

    This is a partnership more than anything.


    YGE is an enormous multinational conglomerate with more subsidiaries than BH. BH is trying to expand and diversify its business and trying to be more like YG, which has been doing it for years.


    Plus YHS and Naver won't sell their shares in YGE. YGE and Naver have several partnerships intertwined including owning VIBE and their new real estate development company. Plus the Chinese companies that have bought into YGE, YGE also has investments in those Chinese companies including Tencent.


    It's not like YGPlus. YGPlus decided to issue new shares as well as YGE decided to sell a portion of its shares in YGPlus. A company can't just decide to come and buy shares.

    YHS and Naver won't sell their shares, they're too intertwined in business. Also YG employees owns a great number of shares in YGE.


    BH and its subsidiary paid YGE about $35 million for a portion of their shares in YGPlus. But YGE is still by far the biggest investor, owning 36% of YGPlus. BH owns 7% and its subsidiary owns 10%. It's why YG has naming rights.

    Also GD and Taeyang have a big portion of shares in YGPlus.


    BH needed YGPlus more than YG needed them, as BH stated, YGPlus has deep connections and expertise in distribution especially in China, and BH has issues with distribution because they have no experience in this. But YGPlus is much more than that. They have VIBE, YG Foods, YG investments, YG Sports, YGKPlus (model roster), YG Advertising, Moonshot cosmetics, Nonagon Clothing brand.


    Also YGE owns the land that YG/Naver/BH are building the VFX/SFX performance venue.


    YGE is too enormous for anyone to come in and buy a number of shares especially BH with their debt, especially when YGE isn't issuing new shares and no one is selling.

    YGE is 100000000x bigger than Pledis or Source. Those are just music labels.

    As you can see.


    EsunGHOUwAMSM4d.jpg

    YG Family

    1080x360

    *Disclaimer I don't read responses to my posts unless I've replied to you before. If that offends you BLOCK ME. It's not my job to police your feelings.

    Edited once, last by Blue2012 ().

  • people think because they've cash so they can buy a whole company LOL


    no one bidding you can't buying :pepe-toast:

  • This is a pointless thing to type sonce it implies that they would need to buy the entire company outright which they dont.


    They can becone the majority sharehlder as I pointed out bt scooping up some of the shares not owned by major players, I think this has already begun since they invested like 60m alreadyin YG so likely own a cdrtain percent already.


    The roughly 10% or there abouts own by the Chinese was bought up for less than 90m Dollars. To become the majority sharholder you only need aboit 18% currently in YG.


    Also the point about the new venture is odd to make as thats over Venew which is something to do with Naver righ? Who are worth like 6 or 7 times what Big Hit are and thus about 10 times more than YG.

  • and the Chinese bought it from YHS LOL

    and that 90m is like 5 year ago

    you think you can buy 18% of share out of stock market ?

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