BLACKPINK’s contract negotiations have been causing some ripples in the stock market for YG Entertainment. The uncertainty surrounding the negotiations has led to fluctuations in YG Entertainment’s stock price.
With BLACKPINK being one of the most popular and successful K-pop groups, their contract talks hold significant importance for the company. Investors are concerned about the potential outcome and how it might affect the group’s future activities and revenue streams.
The discussions for contract renewal with the members have been going on for months and it is hurting YG Entertainment financially. There are reports that Rosé has signed a new contract with the existing agency While Jennie, Jisoo, and Lisa may move to another label.
On September 21, the price of YG Entertainment’s stock dipped by 13% closing at 69,200 won ($51.68) per share. As per the CNBC reports, the stock price hit the lowest figure in months.
This is not the first time it has happened, YG’s shares have faced negative consequences due to negotiations in the past. The stock price fell by 9% when there were reports that Lisa may not extend her contract with YG Entertainment. There are reports that Lisa has received lucrative offers from international and Thai agencies.
As per the Korean media outlet, the continually falling price of the stock is because Lisa and some other members are planning on joining other companies.
Investors are nervous due to over-fluctuating stock prices. Recently, YG Entertainment said in a statement, ‘the negotiations are still ongoing with the musician and their teams and that no official decision has been reached.’