YG Entertainment is experiencing a significant downturn in its stock price, currently trading at 47,650 KRW, reflecting a 6.39% decrease compared to the previous trading day, amidst the fallout of failed contract negotiations with BLACKPINK members regarding their individual activities.
The departure of all BLACKPINK members from YG has contributed to the consecutive decline in the company’s stock value.
Despite YG’s announcement on December 29th of a contract extension for BLACKPINK’s group activities, the failure to secure individual contracts has raised concerns about the company’s future prospects.
BLACKPINK’s Jennie has established her own agency, OA (Odd Atelier), and other members are expected to follow suit, signaling a shift towards individual activities.
This shift poses challenges for YG, as the company loses not only BLACKPINK but also faces the departure of BIGBANG’s G-Dragon, further dimming its outlook.
An expert adjusted YG’s target stock price from 100,000 KRW to 70,000 KRW, recommending a ‘buy’ stance. They emphasize the impact of BLACKPINK members’ failed individual contracts, anticipating revenue gaps for the company.
In the wake of BLACKPINK’s departure, YG’s reliance on the success of rookie girl group BABYMONSTER now becomes even more crucial for its future stock performance.
Meanwhile, BLACKPINK’s Jisoo is set to embark on her solo activities under a family management system. Recent reports reveal Jisoo joining her brother’s health supplement brand, Biomom.
Biomom’s expansion in the entertainment sector involves hiring staff from video content creators to artist security personnel, indicating a strategic move to manage Jisoo’s entertainment career.
YG’s uncertain future, coupled with BLACKPINK members’ pursuit of individual paths, sets the stage for a transformative period in the K-pop industry and the entertainment landscape.
Source: daum
