YG shares drop to record low after news of Lisa (BlackPink) leaving in August

According to CNBC, at the close of trading on July 12, the stock price of entertainment company YG Entertainment (Korea) decreased by 5.8% to 74,300 won.

At the beginning of the session, this code fell 7% to 66,700 won - the lowest since May 11. This stock code was sold off heavily after Munhwa Ilbo exclusively reported that Lisa (BlackPink) "could not find a common voice" with the management company in renewing the contract.

YG shares drop to record low after news of Lisa (BlackPink) leaving in August 1

Four members of the group BlackPink.

Responding to Newsen, YG Entertainment confirmed that contract renewal negotiations are still underway. However, Munhwa Ilbo revealed that "the disagreement between the two sides is still quite large."

In that context, a Chinese company revealed to Munhwa Ilbo: “We have discussed inviting Lisa to a TV show. But we were told that it is difficult to arrange scheduled activities after August, it seems that their contract renewal with Lisa is uncertain.” On the Weibo platform, China, the topic “Blackpink's contract renewal went smoothly except for Lisa” climbed to the top 1 hot search (trending search) of both the general and entertainment charts. BlackPink is a girl group consisting of four members Lisa, Jisoo, Jennie and Rosé. This is one of the most successful K-pop groups of YG Entertainment. The group debuted with YG in August 2016. K-pop groups usually sign 7-year contracts. Therefore, Blackpink's contract is expected to expire in August this year. 2022 is the year YG's revenue peaked at 391.18 billion won. The company's operating profit reached 50.5 billion won, while net profit reached 46.6 billion won. According to Newsis, in the first quarter of 2023, YG Entertainment saw revenue and profit reach 157.5 billion won (over 2,750 billion VND) and 36.5 billion won (638 billion VND), respectively. Revenue and profit increased by 108.6% and 497.6%, respectively, compared to the same period last year. This achievement far exceeded market expectations.

YG shares drop to record low after news of Lisa (BlackPink) leaving in August 2

The news that Lisa failed to reach an agreement to renew her contract with YG Entertainment caused a stir in public opinion.

A major contributor to YG's revenue is revenue from BlackPink's concerts. BlackPink's Born Pink tour, which started at the end of 2022, has so far grossed about $163.8 million, with more than 900,000 tickets sold. On average, the group earns more than $4 million per show with about 22,600 spectators. The above figures do not include 24 shows that have not been counted. This achievement helps BlackPink become the girl group with the highest-grossing tour, surpassing the records of Spice Girls ($78.2 million), TCL ($72.8 million), Destiny's Child ($70.8 million). The four girls will stop in Hanoi on July 29 and 30, which is also BlackPink's last show in Asia.

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