YG Entertainment is known for hosting some of the biggest names in Kpop like Big Bang, 2NE1, BlackPink and Winner. But the South Korean company is not only a talent agency for kpop artists, it also has units that manage models, actors and even sports personalities.
YG Entertainment is one of the “Big 4”, which refers to the four largest entertainment companies in the country. The other three agencies are SM Entertainment, JYP Entertainment, and the recently added HYBE, formerly known as Big Hit Entertainment, the home of world famous boy band BTS.
In any case, Pulse News reported that, as the focus is broken down into many units, YG Entertainment now wants to pay more attention to its artists and the entertainment business. It has therefore decided to relieve its YG Sports division through the sale.
It has been said that YG Sports, YG’s sports marketing unit, is being sold as part of an effort and strategy to divest non-core businesses and focus more on artist management. YG Plus Inc., a subsidiary of YG Entertainment, announced on Friday that it would sell the sports division.
YG Sports is the marketing agency that manages Park Min Ji, a golfer of the Korea Ladies Professional Golf Association (KLPGA). It is being sold to Infinitum Partners, a local private equity fund company, for approximately 6 to 7 billion yen, or $ 5.06 million. After the sale is complete, the new owner will rename YG Sports to GAD Sports.
YG started its sports department in 2007 and, in addition to marketing, began managing the careers of popular pro golfers. It also produced and sold golf apparel and accessories, and hosted tournaments such as KPGA, KLPGA and some amateur leagues.
Although YG Sports was also a profitable business, its revenues declined during the pandemic and YG Entertainment decided to simply shut down its golf business. Now it will put more effort into reinforcing its entertainment unit after the sale.
“We are currently expanding our main entertainment and merchandising business based on our strategy for the company’s future business. Various aspects of our business portfolio are being reviewed, but no specific decision has been made yet,” the Korea Times quoted a YG Plus official as saying , in August when sales reports first surfaced.