Show Golf, which operates golf booking platform XGolf, is pursuing the acquisition of the JTBC Golf channel. The plan is to add a broadcast channel to its booking platform, golf driving ranges, and Japanese golf resorts to boost synergies across the golf business, with the goal of closing the deal as early as within the year.
According to investment banking sources on the 12th, Show Golf recently signed a binding memorandum of understanding (MOU) with channel operator JTBC Discovery for the transfer of the JTBC Golf channel business and has entered due diligence. Samjong KPMG is handling the sale advisory, and the sale price cited in the market is around 20 billion won (approximately $15.0 million).
The asset came to market against the backdrop of a liquidity crisis across the JoongAng Group. JTBC Discovery had survived by borrowing from JTBC Plus and JTBC JoongAng, among others, but the sale process gained full momentum after the top-level holding company, JoongAng Holdings, entered rehabilitation proceedings in June.
JTBC Golf is regarded as a channel that helped grow South Korea’s golf broadcasting market. It launched as J Golf in January 2005 and began broadcasting the Korea Ladies Professional Golf Association (KLPGA) Tour from the 2006 season, and in 2009 it secured domestic exclusive rights to the LPGA Tour, which had been handled by SBS Golf. In 2021, it established JTBC Discovery, a joint venture with Discovery Golf under the US-based Discovery, and transferred the channel business there, also moving into PGA Tour broadcasts. At the time, JTBC JoongAng held a 75% stake.
The problem is the profit structure. JTBC Discovery’s revenue last year was 25.9 billion won (approximately $19.4 million), down 29% from 36.7 billion won (approximately $27.5 million) the previous year, and its operating loss was tallied at 20.4 billion won (approximately $15.3 million). With cost of goods sold at 35.9 billion won (approximately $26.9 million) exceeding revenue, the structure cannot cover costs such as broadcasting rights fees with revenue. At the end of last year, total equity stood at negative 48.3 billion won (approximately $36.2 million), leaving it in a state of complete capital impairment.
Item20242025Revenue36.7 billion won25.9 billion wonCost of goods sold-35.9 billion wonOperating profit/loss–20.4 billion wonTotal equity (year-end)–48.3 billion won
Note: JTBC Discovery results. Cost of goods sold and operating profit/loss for 2024 are not provided in the source material.
The rationale behind Show Golf’s move is the brand recognition JTBC Golf has built and its broadcasting and production capabilities. Although the channel suffered a content gap as LPGA and PGA Tour rights contracts expired and the group-wide funding squeeze hit, the judgment is that securing content could turn its performance around.
Show Golf is a company formed by combining XGolf, founded in 2003 by CEO Cho Sung-joon, and the Show Golf driving range business. XGolf has more than 1.12 million cumulative members and, according to the company, partners with about 360 golf courses and handles 400,000 team bookings a year. It has also broadened its business base by acquiring Japanese golf resorts in succession.
After the acquisition, expanding advertising sales into broadcasting is seen as a likely option. Show Golf has partnered with about 300 brands and has run advertising on the XGolf app, driving range bays, and large billboards at its Gimpo Airport branch. There is also talk of the possibility of holding golf tournaments at its Japanese resorts and broadcasting them directly.
“Show Golf stepped forward early as a potential buyer on the judgment that if it holds tournaments at golf courses it owns and broadcasts them directly, it can handle course promotion and advertising and sponsorship sales all at once,” an IB industry source said. “Full due diligence is currently under way, and the deal looks likely to close within the year if things move quickly.”
The broader divestiture effort at JoongAng Group is also gaining pace. On the 5th, JoongAng Ilbo signed a 520 billion won (approximately $389.7 million) conditional share subscription agreement (SSA) with a consortium of Dow Kiwoom Group, CJ Group, and Shinsegae. JTBC issued a sale notice on the 9th and will accept letters of intent (LOI) through the 4th of next month.
If the deal goes through, Show Golf will complete a golf value chain spanning bookings, driving ranges, overseas resorts, and broadcasting. On the other hand, by taking on a loss-making channel, it also inherits the tasks of securing broadcasting rights and selling advertising. For JoongAng Group, the sale of a core group asset allows it to accelerate securing liquidity.