Thursday, August 14, 2014
[NEWS] Louis Vuitton to Pour Investment into YG Entertainment
One of the world’s best-known luxury brands, Louis Vuitton, is reportedly progressing towards an unprecedented move to invest in South Korea’s entertainment industry. According to a report, LVMH Moet Hennessy Louis Vuitton is currently working on an investment deal worth around an estimated 100 billion won (or around 97.1 million USD) with YG Entertainment. This is roughly 15-20% of YG Entertainment’s total market value. If the deal pushes through, it will be the first time an overseas luxury brand group invests in South Korea’s entertainment industry in such a manner.
LVMH Moet Hennessy Louis Vuitton brings to the table its luxury brands, including Dior, Bulgari, Marc Jacobs, and TAG Heuer, among many others. YG Entertainment, on the other hand, is a leader in the K-Pop scene across Asia, managing big-name talents such as YouTube sensation PSY, BIGBANG, and 2NE1, among others. With the cooperation of these two power players in their respective industries, business watchers expect the investment deal to likely be a way for the two entities to create a platform for mutual expansion.
Sources from the investment banking industry in Hong Kong reported on August 12 that LCapital Asia, a private equity firm backed by Louis Vuitton, is already in the final stages of negotiations that began secretly in June.