Big Hit Entertainment CI
Rumors are rampant among stock markets that Naver is investing its stake in a “stock exchange” method with Big Hit Entertainment, a global idol group BTS (BTS) agency.
The exact size of the investment is not known, but it is reported that it is worth hundreds of billions of won, based on the cases of CJ ENM, Studio Dragon, and SM Entertainment, which Naver previously held hands on mutual equity exchanges.
According to the investment bank (IB) industry on the 22nd, Naver is aiming for synergy between V-live and Weverse by exchanging shares with Big Hit.
Vlive is the K-pop community service currently operated by Naver, and Weverse is Big Hit’s fan community platform.
Instead of competition, they found profit models such as online concerts and saw a great synergy effect through mutual cooperation with the K-pop platform, which is rapidly growing with Corona 19.
K-pop platform is a community service that focuses on ‘communication between fans’.
In particular, this cooperation was envisioned, noting that Corona 19 eliminates offline stages, but increases the potential of online concerts.
An industry official said, “The exchange between the two companies seems to have been made with the intention that they can unite while competing to promote the culture of K-pop.
“As Naver has decided to invest its mutual interest with Big Hit Entertainment, the K-pop platform is expected to become a global online performance platform.
Naver is speeding up its expansion of its entertainment business by joining hands with Big Hit following YG Entertainment and SM Entertainment.
This exchange of shares is also of great interest to global entertainment businesses.
This is because non-face-to-face online concerts, so-called “LAN-line concerts,” are led by Korean information technology (IT) companies and entertainment companies such as Naver, Big Hit, and SM.
This is the result of K-pop leaders who enjoy worldwide popularity in connection with domestic IT platforms.
The online concert “Map of the Soul One,” which BTS hosted in October last year, attracted 990,000 viewers, and its estimated sales reached 54 billion won.
Some say that online concerts are more profitable than offline concerts because not only domestic fans but also foreign fans can participate more easily than actual performances, and that the cost does not increase significantly because many people flock.
“I understand that global music labels are also interested in domestic platforms,” an industry official said.
“If they enter domestic community platforms and hold online concerts, it will be an opportunity to be recognized for their global capabilities.
“As it is increasing its influence through K-pop platform, cooperation with global music companies is also expected.
Artists from these music companies are expected to plan online concerts to overcome the covid-19 slump by using online concerts by local companies.
Big Hit shares closed 11.
27 percent higher than the previous trading day.
Naver headquarters building.<br> It's provided by Naver.<br>
On the other hand, Naver said it cannot confirm the news that it will invest in Big Hit by exchanging shares.
It is neither positive nor negative.
This is in contrast to the fact that it was different from the recent news of the acquisition of Jeju Bank.