Hyo-ji Nam, a researcher at KTB Investment & Securities, said, “The proportion of indirect sales of Ithaka artists will gradually increase, and a full synergy with Big Hit is expected in 2022.” Through this, the synergy expected in the future is even greater.” “In the short term, the volatility of stock prices may be high, but the mid- to long-term direction of Big Hit has become more pronounced through this deal.” We are looking forward to the move.
Big Hit announced the announcement of acquiring Ithaca for about 1.2 trillion won after the market close on the 2nd. It is a structure that is 100% owned by Big Hit America and issues 950 million new shares, and pays 1.7 trillion won for the merger of Ithaca with funds secured from Big Hit.
Researcher Nam said, “As the expected acquisition synergy, the expansion of the lineup of top-tier artists has secured the basis for future growth in various genres, and synergy with Big Hit’s solution and platform business is expected.” As a result, it is possible to expand indirect participation-type sales by linking with Big Hit’s platform.” In addition, he said, “The global activities of Big Hit Labels artists can also be expanded,” he said. “We have established an organizational foundation that can support efficiently locally, and we have achieved the internalization of the value chain and economies of scale.”
Big Hit also shares its IP with Ithaka, increasing the possibility of business expansion in each market.
Researcher Nam said, “By combining Big Hit’s training, fandom business capabilities and Ithaca’s market/industry expertise, it is possible to cultivate global artists and discover various new businesses.” With plans to enter the bus store, Weverse will rapidly expand its transaction value as subscribers increase in the future, and will establish itself as a firm fan platform leader.”
|
