Cube Entertainment formed a strategic partnership with iHQ, a holding company specializing in contents, in its mission to become the top entertainment company in Korea as well as become a strong force in the global music industry.
Cube Entertainment's CEO Hong Seung Sung and iHQ's chairman Jung Hoon Tak signed the strategic alliance agreement on the 17th. According to the agreement, Cube Entertainment sold 9001 shares (50.01%) worth 16.5 billion KRW (~15.2 million USD) to iHQ, forming the partnership. Both companies will invest in each other's activities to create a synergy effect. So CEO Hong Seung Sung, while he maintains his 28% stake in Cube, will invest 2 billion KRW (~1.8 million USD) in IHQ's convertible bonds. Cube Entertainment's biggest shareholder Universal Music will maintain their 11%.
A Cube Entertainment rep stated, "The partnership between music market's strong force Cube Entertainment and strong force in the field of drama, film production and management iHQ, will give us the chance to become the #1 company in the entertainment industry. This partnership will serve as the stepping stone for Cube Entertainment to succeed as a global multi-entertainment company."
iHQ's CEO also stated, "iHQ's first large-scale strategic alliance project with Cube Entertainment will strengthen the global music business and iHQ will work hard to become a premier content syndication group in Korea."