An official from YG’s management board has spoken out regarding BLACKPINK’s contract renewal
Information on the stock price situation of YG Entertainment has been updated. The stock price of YG is declining every day due to the ongoing rumors about the possibility of BLACKPINK not renewing their contract.
In addition, although GDragon is no longer an artist directly under YG, his drug use allegations still caused YG stock price to plummet. In the past six months, the market capitalization of YG has decreased by more than 800 billion won.
The major reason for YG’s stock price decline is the uncertainty of BLACKPINK’s future with the company. In this situation, if YG cannot persuade BLACKPINK members to renew their contracts, the company’s performance in 2024 is expected to take a hit.
Ji In-hae, a researcher at Shinhan Investment & Securities, said, “BLACKPINK now has the biggest impact on YG’s value. If their contract renewal fails, it will have a very significant negative impact on YG’s performance next year.”
Therefore, all attention is now focused on YG’s Q3 report. The company always discloses exclusive artist contracts in its main contract section in its activity report, and this is expected to include whether BLACKPINK will renew their contract. In the report for the first half of 2023, BLACKPINK topped the list of major contracts.
YG has applied a regular report submission model on the same day as the submission deadline and announced temporary performance in the previous three or four days. If this happens again, YG is likely to announce interim results around November 10 and release its quarterly report on November 14. In 2022, YG announced interim results on November 10 and quarterly reports on the same date.
Recently, an official from YG’s management board stated, “We will officially announce our stance on BLACKPINK’s contract renewal. However, it has not been confirmed whether we will make an official statement before the quarterly report is released.”
Source: K14
