Tencent Holdings Limited (OTCMKTS:TCEHY) and Weiying Technology have agreed to invest a total of $85 million, in YG Entertainment. It should be noted here that YG Entertainment is considered to be a leading content provider in Korea, while Tencent and Weiying provide Internet-value added services and online ticketing services to consumers in China, respectively. Representatives from the three companies would be meeting in Seoul, on May 31, to sign the agreement and also to announce future plans growth in China.
As per the details of the agreement, TCEHY and Weiying would buy a total of $55 million worth common shares from YG Entertainment. The remainder $30 million would be bought from the company largest shareholder, Hyun-Suk Yang and YG’s CEO, Min-Suk Yang. Furthermore, Tecent would be investing $30 million, while the remainder would be provided by Weiying. As such, TCEHY would hold 4.5% stake in YG, while Weiying would have 8.2%.
YG Entertainment has stated that it has experienced a growth rate of over 30%, for the last 10 years. However, to maintain these figures, the company needs to expand into the Chinese market. In accordance with this vision, the company believes that Tencent and Weiying would serve as ideal partners. Tencent already has an ongoing partnership with YG Entertainment, under which QQ Music and YG share content with each other.
Tencent had recently attended the annual Advancing the Talent Development Profession Awards, where the company won a total of three “World Talent Development Oscars”. The company was declared a winner in the ATD Innovation in Talent Development, the ATD Excellence in Practice Citation and the ATD Excellence in Practice categories. The ceremony was organized by the Association for Talent Development, which is headquartered in the US and had been operating since 1943.
Tencent Holdings Limited (OTCMKTS:TCEHY) closed at a share price of $22, at the end of the May 27 trading session, after recording a gain of 4.12%, in terms of share value and having a trade volume of 928,210.
