[서울=뉴스핌] Reporter Se-won Kim = Korea Investment & Securities assessed that Big Hit (Hive) on the 5th was reborn as a true global entertainment company through the acquisition of a North American label. Accordingly, we maintained our BUY rating and raised our target price from KRW 310,000 to KRW 340,000.
Earlier on the 2nd, Hive acquired a North American label company through its 100% subsidiary, Big Hit America. Hive raised a paid-in capital increase of 1.1 trillion won to a US subsidiary, and the US subsidiary added approximately 100 billion won of new debt to acquire 100% of Ithaca Holdings for 1.2 trillion won.
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| [서울=뉴스핌] Reporter Lee Ji-eun = Big Hit Entertainment’s mission will be changed to Hive. [사진=빅히트엔터테인먼트] 2021.03.19 [email protected] |
Park Ha-kyung, a researcher at Korea Investment & Securities, said, “Ithaka Holdings is the parent company of SB Projects, which Justin Bieber and Ariana Grande belong to.” “We received equity investments from major artists in Projects.”
Researcher Park continued, “Through the announcement of the distribution of materials on the 1st, Hive will own all label companies including Big Hit Music as a subsidiary.” “By strengthening the independence of labels, we laid the foundation for non-organic growth and acquired a North American label. Through this, we have become a true global entertainment company.”
He cited △Expanding the portfolio and alleviating reliance on BTS as a synergy effect expected through the acquisition of a North American label company △Establishing a bridgehead for entry into the global market △Strengthening the platform and content business.
Researcher Park said, “As global pop singers’ management sales increase, their dependence on BTS will continue to decrease.” As such, it is expected to contribute more than 60 billion won in operating profit per year.”
He also said, “If Hive previously expanded its business area by leveraging the strong fandom power of BTS, now it is possible to gain an edge in the process of entering the global market by combining global pop singers and big hit artists.” He predicted that the strength of the content and platform business will meet the strong IP of Ithaka Holdings artists and drive the growth of new businesses.”