Saturday , October 21 2017

The likelihood of Big Hit Entertainment filing for an IPO grows thanks to BTS

With idol group BTS on the rise and securing million dollar-based contracts for various endorsements, agency Big Hit Entertainment‘s company value is also increasing.  Big Hit Entertainment is currently a private company but according to financial analysts, they’re predicting that Big Hit will be going public and filing for an IPO in the near future.

SEE ALSO: BTS reportedly aiming to come back in September

On July 23, according to the Finance and Services Committee, BTS signed an exclusive two-year contract with KOSDAQ listed company GMP Co., Ltd. and their subsidiary cosmetic company Gonsen worth 3.6 Billion KRW ($3.2 million).

Gonsen will be paying an additional 100 Million KRW ($90,000) for the usage of BTS image rights. Gonsen will be using the image and names of BTS for their VT Cosmetics product line.  Thanks to BTS, Big Hit Entertainment is also currently in the spotlight, taking second place among all Korean entertainment agencies last year (SM Entertainment was #1) by selling a total of 1,358,644 albums.  Furthermore, there was an increase in revenue for Big Hit as they tallied 35.2 billion KRW ($31.5 Million) in sales with an operating profit of 7 Billion – 8 Billion KRW ($6.2 Million – $7.1 Million) in 2016. There’s room for further growth as financial analysts are predicting that Big Hit will surpass 50 billion KRW ($44.8 Million) in sales this year

Because of this, the possibility of Big Hit filing for an IPO is increasing. Many financial investors are looking closely at Big Hit and the company has already received various rounds of funding. In seed funding, Big Hit received 4 Billion KRW ($3.58 Million) from Venture Capital Investment in 2012. In the latest round of funding in 2016, Big Hit received 5.5 Billion KRW ($5 Million) from LB Investment and 7 Billion KRW ($6.2 Million) from Legend Capital China.

Check Also

LABOUM’s Solbin and ZN are sexy by the beach for summer special teaser photos!

LABOUM have dropped teaser images for their summer special! The first two images are of Solbin and ZN, and …

Leave a Reply

Your email address will not be published. Required fields are marked *