YG Entertainment Announces 'BLACKPINK Group Activities' on the 6th
Individual Contracts Remain... Successfully Protecting Major IP
'Cash Cow' BLACKPINK, Absolute Impact on Revenue
As news of 'BLACKPINK full group activities' spread, Yang Hyun-suk, YG Entertainment's executive producer, saw the value of his shares surge by 38.8 billion KRW in just one day.
According to the Korea Exchange, on the 6th, YG closed at 60,300 KRW, up 12,300 KRW (25.63%) from the previous day. Although foreign investors sold a net amount worth 10.867 billion KRW, institutions and individuals bought net amounts worth 6.273 billion KRW and 4.94 billion KRW respectively, causing the stock price to soar.
'Group Exclusive Contract' Disclosure… YG Protects Its Largest IP
At around 10 a.m. that day, YG announced, "The board of directors has completed the resolution regarding the exclusive group contract with all four members of BLACKPINK." This means YG has secured the rights to BLACKPINK, its biggest cash cow and intellectual property (IP).
Yang, the executive producer, said, "I am pleased to continue our relationship with BLACKPINK. Going forward, BLACKPINK will do their best to shine even brighter in the global music market as artists representing not only our company but also K-pop, and we will continue to offer unwavering support and trust in their journey."
He is the largest shareholder, holding 3,151,188 shares (16.87%) of YG. Based on the closing price on the 5th (48,000 KRW), Yang's share value was 151.257 billion KRW, but it jumped approximately 38.8 billion KRW to 190.016 billion KRW.
Since BLACKPINK's exclusive contract expired last August, there had been speculation that YG was struggling with the renewal. Every time rumors surfaced, YG's stock price was immediately affected, making the question of whether YG could retain BLACKPINK's IP a hot topic.
'Born Pink' Earns 100 Billion KRW in Two Months… The Value of BLACKPINK
From September 16 to 17, BLACKPINK's world tour 'BORN PINK' held its Seoul finale concert at Gocheok Sky Dome in Guro-gu, Seoul. [Image source=Yonhap News]
In fact, BLACKPINK has an absolute impact on YG's revenue. Since BLACKPINK's comeback in September last year after more than two years, YG's performance has noticeably increased. Sales in the first half of this year reached 315.8 billion KRW, a 132% increase compared to 151.5 billion KRW in the first half of last year.
Additionally, BLACKPINK's world tour 'Born Pink,' held from October last year to September this year, attracted approximately 1.8 million attendees across 34 cities worldwide. This concert set a new record by surpassing 100 billion KRW in sales within just two months. As a result, YG's concert revenue in the first half of this year was 71.656 billion KRW, more than triple the total concert revenue for the entire previous year.
Individual Member Contracts Are Under Negotiation
However, this contract pertains to BLACKPINK's group activities, and contracts for individual members are still under negotiation. Members may be active under different agencies while participating in BLACKPINK group activities with YG.
Lee Ki-hoon, a researcher at Hana Securities, commented, "Although the details of individual exclusive contracts are still undecided, it is positive news that full group activities are guaranteed."
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