Big news alert! YG Entertainment just revealed they’re selling most of their ownership in Studioplex. This announcement is shaking up the entertainment world, making everyone wonder what’s next. In this article, we’ll break down what this means and what could happen next for both YG Entertainment and Studioplex.
YG Entertainment Announces Sale Of Majority Stake In Studioplex
By the end of the year, YG Entertainment intends to sell 60% of its stake in Studioplex, a drama production firm. By this decision, YG Entertainment will surrender the management rights of Studioplex and lower its stake from 99.9% to 39.9%.
On May 7 KST, YG Entertainment disclosed in answer to questions, saying, “We are in the process of selling a portion of Studioplex shares to a production company with the aim of establishing a robust and competitive business structure aligned with our core operations. We are dedicated to strengthening the production environment to ensure fiscal soundness,” the firm said, emphasizing its dedication to improving Studioplex’s financial stability.
YG Entertainment launched Studioplex in 2017 in response to the increasing influence of rivals like SM Entertainment and JYP Entertainment. The action was taken in an effort to diversify revenue streams by utilizing the synergies that exist between talent management and drama production.
Nonetheless, the production organization encountered difficulties when some of the works attracted unfavorable notice. Notably, Studioplex’s March 2021 SBS drama “Joseon Exorcist” was canceled after just two episodes due to widespread criticism for its historical inaccuracies.
Prod by Studioplex and written by the same writer, the tvN drama ‘Mr Queen’ also encountered backlash for how it portrayed historical events.
Consequently, Studioplex faced a reduction in their performance and a rise in debt, with ‘Joseon Exorcist’ losses being particularly significant. All of the production expenditures were written off as losses because the production was stopped too soon.
