Shareholders Anxious Over BLACKPINK’s Renewal As YG Stock Prices Drop Every Time Lisa’s Dating Rumor Surfaces
YG shareholders are frustrated over the uncertainty of BLACKPINK’s contract renewal
“BTS has two years left until the expiration of their contract, but they have already renewed it,” a user in the YG Entertainment stock discussion forum complained.
With the news of the renewal of the contract between HYBE (formerly Big Hit Music) and all BTS members, YG Entertainment’s stock discussion forum has been filled with envy and complaints. The concern of YG’s shareholders has deepened.
According to the Korea Exchange on the morning of September 21st (KST), YG Entertainment’s current stock price is trading at 76,300 won, down 4.01% from the previous day. YG stock price soared to 97,000 won in late May, but lately, it has struggled even to hold the 80,000 won mark.
YG stock price has been volatile every time there have been issues related to the contract renewal of BLACKPINK members. BLACKPINK’s exclusive contract with YG Entertainment ended on July 7.
At the center of the debate is Lisa. Concerns arose that Lisa’s prolonged stay in Thailand might signify her refusal to renew the contract. Every time her dating rumors surfaced, YG stock price plummeted.
On September 15th, Thai media reported that Lisa was seen with Frederic Arnault, the CEO of luxury watch brand TAG Heuer and the fourth son of LVMH chairman, in Bangkok. On the same day, rumors circulated that “Lisa was recently offered a contract worth around 50 billion KRW by YG but she turned it down.” YG stock price fell by nearly 3% on that day, and at one point, it dropped more than 10%.
On July 12th, multiple media outlets reported on the dating rumor between Lisa and Frederic Arnault. YG stock price dropped by 9.13% from September 12th when the dating rumor was widely reported until September 14th. Reports also stated that “among BLACKPINK members, only Lisa’s contract renewal is uncertain,” further fueling the stock price decline.
Despite more than a month passing since BLACKPINK’s exclusive contract expired, there is still no news of a contract renewal. YG has not issued any official statement either. Investors are growing weary. On discussion forums, divided opinions such as “HYBE is a feast, while YG is a famine,” “YG shows no consideration for shareholders,” “I sold everything out of anxiety,” and “I believe Lisa will definitely renew her contract” appeared.
On the other hand, analysts advise that if YG is in a phase where the structure centered around BLACKPINK is being resolved, it should not be overly fixated on BLACKPINK’s contract renewal issues.
Lee Hwajung, a researcher at KB Securities, said, “Although uncertainties regarding BLACKPINK’s contract renewal still exist, YG stock price has largely already reflected this.” She added, “Rather than relying on BLACKPINK’s re-signing, it seems necessary to pay attention to the growth momentum of other groups. TREASURE has proved their growth momentum by selling 1.7 million copies of their debut album, and for BABYMONSTER has already secured a strong fan base before their debut.“
Kwon Choijong, a researcher at Hana Financial Investment, said, “As BABYMONSTER marks the comeback of Yang Hyunsuk and TREASURE is also expanding their global fandom, YG’s profitability for the latter half of the year is expected to be somewhat protected even during BLACKPINK’s inactive period.”
Source: Hankyung
