SEOUL, KOREA - Korea's cable TV channel operator CU Media will make an initial public offering indirectly through its merger partner IHQ Inc., an entertainment talent agency. On October 20, IHQ said it signed a merger agreement with CU Media at the ratio of 1 to 43.672947, meaning that one IHQ share will be exchanged with about 43 CU media shares. 

 

The two companies will finalize the deal by February next year after getting approval from the board of directors of respective firms in December this year. Once the two successfully complete the merger process, it will become a giant entertainment company with market cap of 400 billion won, with the largest shareholder cable TV operator C&M and IHQ's largest shareholder Jung Hoon-tak becoming the second largest shareholder.

 

IHQ currently manages popular singers and actors. In addition to the main talent agency business, it also runs Cube Entertainment, a record label. IHQ's market value is 124.6 billion won as of October 20. CU Media runs six cable channels including Dramax, Comedy TV, Y-Star, and AXN. The largest shareholder C&M owns 57 percent of the stake. Its market capitalization as of October 20 is 284.0 billion won.