Leading South Korean entertainment company YG Entertainment Inc. plans to shed its sports marketing unit YG Sports as part of efforts to divest non-core businesses and better focus resources on artist management.
According to investment banking industry sources on Friday, YG Entertainment subsidiary YG Plus Inc. has decided to sell YG Sports, a sports marketing agency behind KLPGA star Park Min-ji, to the company. local private equity firm Infinitum Partners for approximately $6 billion ($5.08). million) to 7 billion won. The PEF said it would rename YG Sports to GAD Sports.
Since its inception in 2007, YG Sports has been engaged in golf marketing, hosting popular professional golfers, organizing and managing golf tournaments including KPGA, KLPGA and amateur leagues, and manufacturing and selling supplies and golf clothes. Last year, its operating profit was 3.3 billion won, down 10% from a year earlier, on sales of 29.7 billion won, down 17 % year-on-year, due to a hiatus in golf tournaments amid the pandemic.
According to its consolidated audit report last year, its 55.26% stake is held by YG Plus, 43.42% by YG Naver Contents & Lifestyle Fund and 1.32% by Cho Sung-joon, head of the XGOLF golf course booking site that YG Sports acquired. full participation in 2017.
YG Entertainment has been downsizing since 2019, cutting production units for cosmetics, restaurants, sports and non-essential TV programs and losing money to improve its financial structure. The company sold its restaurant business YG Foods through a management buyout deal in 2019 and its cosmetics brand Moonshot Cosmetics last year, and is set to sell Green Works Corp., the operator from the country’s largest golf course booking site XGOLF.
By Kang Doo-soon, Park Chang-young and Lee Soo-min
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]