The value of YG shares plummets due to the possible departure of some members of Blackpink
YG Entertainment (hereinafter, YG) is suffering a sharp drop in the value of its shares due to the rumor that some members of Blackpink (Jennie, Rosé, Jisoo, and Lisa) will not renew their contract with the agency. According to a media outlet, some members of the popular girl group would have decided to change companies, which caused YG shares to plummet more than 15% during the day. This shows how important Blackpink is to YG’s revenue. The agency will have to reduce future risks and find new sources of growth. One of them could be the debut of the long-awaited rookie group, Baby Monster.
On September 21, YG shares closed at 69,200 won, down 13.28% from the previous day. During the day, they fell to 67,500 won, 15.41% less than the previous day. The cause of this collapse was the news that the contract between YG and Blackpink, which represents an absolute part of YG’s revenue, would not be renewed. A media outlet reported that day that some members of Blackpink had moved to different agencies, to which YG responded: “There is nothing confirmed yet, and we are in negotiations.”
Baby Monster, YG’s new girl group led by Yang Hyun Suk, generates excitement among fans
While negotiations between Blackpink and YG are at an impasse, shareholders are increasingly concerned about the agency’s future. Given this context, Yang Hyun Suk, the general producer of YG, is preparing for the debut of the new girl group Baby Monster with great anticipation. Baby Monster is the first girl group to launch YG after Blackpink, about 7 years ago. Some details about the group have already been revealed. It will be formed by seven members of different nationalities: Korea (Ahyeon, Haram, Lora), Thailand (Parita, Chikita), and Japan (Luka, Asa). It is said that all of them have a high level of vocalization, dance, rap, and visual
The number of subscribers on YouTube already exceeds 3 million. The music video for their pre-debut song ‘DREAM’ reached 50 million views in just three months since its release. ‘DREAM’ is a song that reflects the process and the new beginning that Baby Monster has lived to achieve his dream. According to YG data from June, the cumulative number of views of YouTube content related to Baby Monster exceeded 500 million. This shows the great interest that global fans have for this new group.
Baby Monster’s debut project is being faithfully carried out under the direction of Yang Hyun Suk. A dedicated team has already been formed to work for the group. However, the exact date of the debut has not yet been decided. It was initially scheduled to debut this month but has been delayed to achieve higher quality. It is known that the debut song will be of the hip-hop genre and that the members of YG are working with more enthusiasm than ever in music production.
In order for YG to maintain sustainable growth, it is important to renew the contract with Blackpink, but so is the success of the upcoming group Baby Monster, according to widespread opinion in the industry. YG has already proven its ability to discover and produce talented and globally successful K-pop idols such as Big Bang, 2NE1, and Blackpink. It remains to be seen if Baby Monster, who has already raised the expectations of music fans before his debut, will become the next global K-pop star to lead YG’s future.