XGOLF leaves YG to merge with ShowGolf... "IPO challenge within 3 years"

Acquisition of All Greenworks Shares in April
Expansion of Direct Stores and Franchise Openings

Jongjun Cho, CEO of XGolf and ShowGolf
Photo by Yonhap News

XGOLF is leaving YG Entertainment and merging with ShowGolf. The plan is to challenge an initial public offering (IPO) within three years after the merger.

According to a representative of XGOLF, an online golf reservation platform, on the 17th, ShowGolf, an outdoor golf practice range operator, is scheduled to purchase the shares of Greenworks, the operator of XGOLF, from YG in April. Currently, both XGOLF and ShowGolf are led by CEO Jo Seong-jun.

Building on this, ShowGolf plans to focus on more than doubling the number of golf practice ranges it currently operates. ShowGolf currently runs four directly managed locations, including Gimpo Airport, Yeouido, Gayang, and the Dobong branch, which opened on the 9th. The goal for this year is to open 10 new directly managed 'ShowGolf' branches and 15 'ShowGolf Family' franchise golf practice ranges.

Previously, in April last year, YG announced it would sell all 55.26% of its shares in Greenworks, the operator of XGOLF. At that time, YG disclosed that the disposal date would be April 14 of this year. The reason for the sale was "to focus on core businesses through business restructuring and to improve management efficiency." Currently, Greenworks' shares are divided between YG's key affiliate YG PLUS, holding 55.26%, and Naver Content & Live Style Fund, holding 43.42%. ShowGolf will acquire all these shares.

ShowGolf plans to complete the acquisition of Greenworks' shares by April and then merge with Greenworks to prepare for the IPO. According to a representative, it is expected to take about 2 to 3 years. However, concerns have been raised that the success cannot be easily predicted due to the decline in the golf boom, including the MZ generation's (Millennials + Generation Z) withdrawal from the golf market.

An XGOLF representative said, "We plan to use this merger as a stepping stone to expand directly managed stores and develop various new businesses together with ShowGolf, the operator of golf practice ranges."