Cha Ga-won, CEO of One Hundred Label, is preparing a strategic M&A as a stepping stone to resolve artists' unpaid settlement issues.
On the 17th, One Hundred Label said it has entered full-scale negotiations with marketing tech firm Orbit for a strategic merger and acquisition. Through this discussion, the two companies plan to stabilize the management rights of One Hundred Label while building a strong united front to conquer the global market.
Orbit is an IP marketing innovation corporation equipped with a global influencer network and the capacity to plan large-scale performances and events. Through its M&A proposal for One Hundred Label, Orbit suggested jointly building a differentiated business model to propel K-POP IP into a "global lifestyle brand."
Because Orbit is preparing to attract large-scale investment, as M&A discussions progress it is reviewing concrete plans to inject substantial capital and technological capabilities into One Hundred Label.
One key point of the talks is to immediately normalize One Hundred Label's management based on Orbit's financial power. Orbit presented a roadmap to prioritize resolving artists' unpaid settlement issues by deploying capital secured during the M&A process.
A One Hundred Label official said, "This strategic M&A discussion with Orbit is an expression of our determination to protect artists and fans to the end despite external attempts to shake us," and added, "We will derive the best measures for management normalization and global leap to establish a new order in the entertainment market."
Meanwhile, recently One Hundred Label has suffered a string of defections among artists under its labels. Starting with Taemin, The Boyz, B.O., Lee Mujin, VV, Lee Seung Gi, and EXO-CBX have notified the company of contract terminations.
[Photo] Provided by One Hundred Label
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