Rain formed J.Tune Entertainment after his contract expired with JYPE in 2007. But JYPE has became the largest shareholder of J.Tune earlier this month, and J.Tune will be made a subsidiary under JYPE label subsequently.
It’s reported that Rain actually initiated the merger, probably to get someone he could trust to look after his company when he is enlisted into the military to fulfil his two year mandatory service.
The arrangement makes sense for both parties. JYPE has grown into a bigger company since Rain left, with the emergence of Wonder Girls and 2PM etc.; while Rain is still one of the most influential Korean artists globally. It’s win-win.