[팍스넷뉴스 류석 기자] Mamamoo’s agency RBW (RBW) is strengthening its position as a comprehensive content production company through M&A, a promising entertainment company. With this M&A, RBW is expected to speed up the expansion of new businesses at home and abroad using additional intellectual property rights (IP) and sales expansion following artist diversification.
According to the investment industry on the 7th, RBW took over the management rights of WM Entertainment (WM Entertainment), the management company of the groups’Oh My Girl’ and’On & Off’. Recently, RBW signed a stock purchase agreement (SPA) with the largest shareholder of WM Entertainment and completed the transaction on the 31st of last month. RBW acquired more than 70% of WM Entertainment’s shares, including new and old stocks, and incorporated it into a subsidiary.
It is the first time since its establishment that RBW has acquired management rights of an entertainment company. Until now, RBW has adhered to a growth strategy based on its own artist development system. In order to effectively respond to the global market demand for’K-Contents’, which is increasing rapidly in recent years, it was determined that it was necessary to strengthen capabilities through M&A.
WM Entertainment is a mid-sized entertainment company that opened in 2008. The former singer Kim Jeong-soo (example: Lee Won-min) is the founder and largest shareholder. Since 2012, it has been converted into a corporation and has been discovering and fostering various artists. Director Jin-mi Kim, who is in charge of production, and Ji-Hyun Cho, who is in charge of management, are key characters and are engaged in various entertainment businesses such as management, album planning and production, and concert planning. Major artists include Oh My Girl, B1A4, On & Off, etc. Last year, it recorded 12.8 billion won in sales and 1.4 billion won in operating profit.
RBW plans to focus on creating synergy by working closely with WM Entertainment in the future. If RBW and WM Entertainment combine their respective artist planning and content production capabilities, it is expected that they will be able to diversify sales and promote successful new business. In addition, it plans to launch a new strategic business based on IP and enter the overseas entertainment market in earnest.
RBW is also in the process of going to public offering (IPO) smoothly, and it is reported that it has completed the warmth designation audit in 2020. It is planned to complete the listing on the KOSDAQ in the second half of this year. RBW recently received an enterprise value of more than 100 billion won in the venture investment market. As the M&A has significantly increased sales and content production capabilities, the corporate value evaluated in the market after listing is expected to increase further.
RBW recorded the highest performance ever despite the economic downturn caused by Corona 19 last year. Expectations for a successful KOSDAQ listing are rising. As a result of the results of last year, K-IFRS consolidated financial statements recorded 37.2 billion won in sales and 7.6 billion won in operating profit. This is an increase of 33.7% and 48%, respectively, compared to the previous year. In addition to the artist management business, various business portfolios based on content, such as content production and brand marketing agency, are evaluated to have led the performance.
RBW CEO Kim Jin-woo, who has led this M&A, said, “WM Entertainment is a company that has grown rapidly in the domestic and foreign entertainment markets based on its ability to discover and nurture artists.” Said energetically. He added, “We plan to develop strategic businesses based on content IP so that we can lead the culture of’K-contents’ overseas beyond the domestic market.”
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