BLACKPINK Contract Renewal Sends YG Entertainment Stocks Skyrocketing
BLACKPINK Renews Contract K-POP
News of BLACKPINK’s contract renewal with YG Entertainment has triggered a significant surge in YG’s stock prices, reaching an impressive 29% at its peak in the morning. By 2 p.m., the stock was trading at 60,100 won on the KOSDAQ market, marking a substantial 25.21% increase from the previous day. YG’s market capitalization experienced a remarkable boost, soaring by 241.1 billion won to 1.1264 trillion won within a single day. The resolution of uncertainty surrounding BLACKPINK’s contract, considered a core asset for YG, has restored stability to the company’s corporate value.
“group activities.”
However, despite the positive impact on the stock market, YG’s stance on the renewal is cautious. The exclusive contract with BLACKPINK is clarified to pertain only to “group activities.” This implies that YG holds exclusive rights over the group’s endeavors as a whole, leaving individual contracts unspecified. While YG emphasizes that the renewal is based on deep trust, industry insiders perceive it as a partial contract renewal, with talks still ongoing.
Reports suggest that certain BLACKPINK members did not finalize their contract renewal until the last moment, causing some apprehension within YG. The announcement of the renewal came nearly four months after the contract expiration.
Group activities, as outlined in the renewed contract, encompass album releases, performances, and merchandise sales under the BLACKPINK name. While these activities are anticipated to generate substantial revenue, profits from individual members’ endeavors, such as endorsements or solo projects, remain independent of YG’s earnings.
BLACKPINK, after working
Crucial details, including the duration of the renewal period and the profit distribution ratio, remain undisclosed. Typically, contract renewals span around three years on average, but industry speculation suggests that the negotiation period may have led to a shorter duration, possibly one to two years. The profit distribution ratio is assumed to have undergone adjustments as per the members’ terms.
An industry official noted, “BLACKPINK, after working under the same contract terms since their debut, may have sought better profitability. Considering the profit distribution ratio at their debut, BLACKPINK likely contributed significantly to YG’s profits over the past seven years.” The official added that this renewal probably secures advantages for BLACKPINK in terms of duration and profit distribution.
While uncertainties persist about BLACKPINK’s responsibility for YG’s future, the group’s impact is undeniable. Despite a relatively low number of album releases over seven years, BLACKPINK’s renewal signifies hope for fresh music and performances from the group with a massive global following. YG Entertainment, with this renewed partnership, is set to embark on another chapter with BLACKPINK, their flagship IP and a symbol of achievement.
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BLACKPINK, Jennie, Lisa, Rose, and Jisoo, I love you. I look forward to your great moves.