HYBE recognizes $717 mil goodwill following Ithaca acquisition Goodwill accounts for more than two-thirds of purchase price
Translated by Ryu Ho-joung 공개 2021-08-09 08:06:15
이 기사는 2021년 08월 09일 08:02 thebell 에 표출된 기사입니다.
South Korea’s HYBE, home to global pop-star BTS, has recognized a 820 billion won ($717 million) goodwill linked to its takeover of US media group Ithaca Holdings, which made it vulnerable to potential impairment losses if it fails to achieve acquisition synergies.The Seoul-based company recognized 960 billion won of intangible assets, 820 billion won of goodwill and 140 billion won of other intangible assets in connection with its acquisition of Ithaca Holdings, a HYBE official said during a second-quarter earnings call on Thursday.
Goodwill worth 820 billion won represents over 68% of the acquisition price. HYBE in April acquired 100% of the US company, which is behind artists like Justin Bieber and Ariana Grande, for $1.05 billion (about 1.2 trillion won).
Goodwill in accounting is an unidentifiable intangible asset calculated as the difference between the purchase price and the fair value of the net identifiable assets acquired. It accounts for intangible benefits from acquisitions, such as the acquired company’s reputation, management talent and control premium.
The value of Ithaca Holdings’ identifiable net assets is roughly estimated to be 380 billion won based on the purchase price and goodwill. This means HYBE recognized goodwill more than three times greater than Ithaca Holdings’ net assets value.
Goodwill is tested for impairment annually based on the business’s cash generating unit (CGU). If the carrying amount of the CGU exceeds the recoverable amount, an impairment loss should be recognized in the income statement, reducing the company’s net profit.
HYBE needs to maximize acquisition synergies in order to avoid writing down goodwill. The company plans to expand its entertainment business in the United States by using Ithaca Holdings’ knowhow and resources.
The two companies’ artists are also expected to create synergies in areas like platform services (such as HYBE’s fan platform Weverse), online concerts and secondary content distributions. HYBE has subsidiaries which organize online concerts and develop and distribute secondary content and products related to artists.
Ithaca Holdings’ famous artists joining Weverse will likely help significantly increase the platform’s monthly active users and average revenue per paying user. (Reporting by Choong-hee Won)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [네이버 알짜사업 톺아보기] '커머스 시너지' 네이버파이낸셜, 관계사의 '현금 곳간'
- 젬백스링크, 남경필 전 경기도지사 영입
- 빗썸, 격변 대신 '현상유지' 선택…경영효율화 '초점'
- [모태 2024 1차 정시출자]키움인베·위벤처스, 스케일업·중견도약 GP 확정
- [SK그룹 리밸런싱 스토리]그린 밸류체인 '각개전투', 철수와 유지 사이
- [기후테크 스타트업 돋보기]'폐기물 로봇' 에이트테크, IPO 나선다…주관사 KB증권
- [대성창투는 지금]모태·성장금융 잇단 GP 반납, '주홍글씨' 여파는
- [코스닥 주총 돋보기]파두, 신규 데이터센터 2곳 확보 '사정권'
- [코스닥 주총 돋보기]파두 "유증 당분간 없다"…흑자전환 '총력'
- 앱솔루트운용, 부산신항펀드 4년째 환매 지연 '어쩌나'