YG’s situation after BLACKPINK’s contract renewal has been revealed
According to NH Investment & Securities’s evaluation of YG Entertainment on December 18th, YG had solved their biggest problem, which was BLACKPINK’s contract renewal, and there are no additional concerns at the moment.
In a report on the same day, researcher Lee Hwa-jung revealed that the target stock price for YG (87,000 won) and the investment opinion (Buy) remained the same.
The researcher said, “With BLACKPINK’s official contract renewal, the biggest uncertainty has been solved. BABYMONSTER’s debut song was also successful so no there are no remaining concerns”, adding “The rapid growth of BABYMONSTER and TREASURE and BLACKPINK’s comeback event will be YG’s opportunities to raise their stock price significantly”
Especially, regarding the terms of BLACKPINK’s new contract, they said, “It seems that the increase in artist profit distribution ratio is limited and the down payment had been determined within the recoverable range”
Mentioning BLACKPINK’s individual contracts, which have not been confirmed, researcher Lee said, “Individual contracts are expected to be flexible”, adding “In the case of individual activities requiring the title ‘BLACKPINK’, such as solo albums, there is a high possibility that the members will work with YG because the company his holding the trademark rights.”
Regarding BLACKPINK’s individual activities, they said, “Independence will be guaranteed for individual activities in which showcasing the members’ personal skills are more important, such as participating in variety shows or launching brand businesses”, adding “However, all individual activities will be carried out in the scope that they do not interfere with group activities.”
Previously, BLACKPINK decided to continue their group activities by renewing their contract with YG Entertainment. In particular, YG officially announced on December 6 that “The board of directors has completed the resolution regarding the exclusive group contract for all four members of BLACKPINK.”
With this, YG successfully secured its largest intellectual property (IP). Through a press release distributed after the announcement, YG stated, “After careful discussions with BLACKPINK, we have signed an exclusive contract for group activities based on strong trust.”
Following the renewal, BLACKPINK plans to continue their group activities under the support of YG, including the release of new albums and a large-scale world tour. YG’s CEO Yang Hyun-suk expressed his joy, stating, “I am pleased to continue our connection with BLACKPINK,” and added, “We will do our best to make BLACKPINK shine even more brightly in the global music market.”
Meanwhile, BLACKPINK debuted on August 8, 2016, with the double-title tracks “Whistle” and “Boombayah”. The group later gained huge popularity both in and outside of Korea, with each of the 4 members making a name for themselves in both the music and fashion group.
In fact, it is no exaggeration to say that BLACKPINK is a girl group who is “dominating” the K-pop scene. The group also achieved a remarkable feat by topping the U.S. Billboard 200 and the UK Official Albums Chart Top 100 and was the first K-pop girl group to do so.
Source: Daum
