'Snowpiercer' Producer to Acquire Majority Stake in K-Pop/Advertising Production Company
South Korea's Spackman Entertainment Group is looking to establish a presence in China through its Breakfastfilm investment
South Korea's Spackman Entertainment Group, which has produced major local films such as Snowpiercer, will become the largest stakeholder of K-pop video production company Breakfastfilm, it was announced Friday. The move signals the group's foray into the Chinese market.
Spackman Entertainment has entered into a subscription agreement to acquire additional 46.4 percent of Breakfastfilm for approximately $1.22 million. The group's subsidiary, Opus Pictures, currently owns convertible notes in Breakfastfilm, and the acquisition of an additional 46.4 percent will give Spackman a 51 percent stake.
Breakfastfilm has produced major TV and online commercials for Samsung, Hyundai Motors, Coca-Cola and McDonald's, as well as music videos for top K-pop acts including Wonder Girls, 2PM and Rain. It also specializes in providing new-media marketing strategies and solutions and has recently launched projects in China.
"With the additional capital from our investment, Breakfastfilm will be expanding their recently formed China operation, which is in line with our efforts to commence building our business presence in China," said Spackman Entertainment's executive chairman Charles Spackman.
"We expect Breakfastfilm to be a direct beneficiary of the rising popularity of Korean‐made content and products in the China market," he added. Major Korean producers and filmmakers are looking to China for growth amid the rising number of exchanges between the two Asian countries' entertainment industries.
Spackman Entertainment, which recently became the first Korean film company to list in Singapore, believes the new acquisition will help diversify its revenue stream.
"[The M&A] is expected to provide more stability and consistency in the flow of income throughout the course of a fiscal year, as the revenue stream from our film production business can be concentrated in certain periods throughout the year," said Spackman.