Entertainment Stocks’ Attention Focused on Re-signing of ‘BLACKPINK’… Likely to Be Announced After World Tour
Investors in entertainment stocks are highly interested in the re-signing of BLACKPINK. Some investors have set the upcoming 8th of the month as the ‘deadline’ to patiently await news regarding BLACKPINK’s contract renewal. However, the possibility of an announcement regarding the re-signing before BLACKPINK’s world tour schedule on the 26th of this month is low. Instead, based on previous cases, the announcement might be made after September. The expected contract fee for each member is estimated to be around 1.5 billion won.
According to the securities industry on the 3rd, considering BLACKPINK’s debut date (August 8, 2016), the announcement of the contract renewal would be due on the 8th of this month. However, many analysts are optimistic about the contract renewal, taking into account BLACKPINK’s world tour schedule at the end of August. As BLACKPINK is estimated to account for more than 80% of YG Entertainment’s operating profit, some have stated that “after the announcement of BLACKPINK’s contract renewal on the 8th, the company’s valuation will be reevaluated.”
In the entertainment industry, in cases where there are differences in opinions between the company and the artist, it is common to extend the existing contract terms for a certain period in regular employee contracts and announce an agreement after the expiration. Therefore, it is expected that the announcement of BLACKPINK’s contract renewal will be postponed until after the 8th.
A YG Entertainment official stated, “There might be unexpected early agreements, but since the world tour concerts are already scheduled until the end of August, it is likely that the current contract will be maintained until then. The announcement of the re-signing might occur after September.” In reality, YG Entertainment previously announced the contract renewal for the boy group iKON after three months from their debut.
However, it has become difficult to be certain that the scheduled concert at the end of August will be a positive signal for the contract renewal, as there are rumors about not only Lisa but also Jennie, Jisoo, and Rosé, with speculation of overseas entertainment contracts and individual agency establishment. Still, nothing has been officially confirmed by the members.
Meanwhile, there is also a high interest in the scale of the contract fees for BLACKPINK’s re-signing. Cha Yumi, a researcher at Mirae Asset Securities, stated, “Considering the contract fees for BIGBANG (10 billion won per member) and TWICE (12 billion won per member), BLACKPINK’s contract fee per member is also expected to be around 10 to 15 billion won.”