In the middle of the great controversy that has caused the end of the contract of the girl group BLACKPINK with their agency, YG Entertainment, and after some time not having renewed it has caused this company to suffer a large drop in its shares.
In recent days, various rumors have emerged about the future of BLACKPINK and each of its members and their solo career plans worrying fans, to which the agency has responded with the phrase “Nothing has been confirmed yet“.
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This ambiguous statement could be problematic for a typical publicly traded company, since this has been going on for a few months now, in addition to being a very important issue for the company and its investors, BLACKPINK.
On September 25th, the agency’s share price closed at 65,500 won, marking its fourth consecutive day of decline. Furthermore, in recent times these had also decreased by 18.43% due to the worrying news of the contract with the members of the girl group.
YG also suffers a crisis of confidence, this September foreign investors sold a large number of shares, causing the foreign ownership rate to drop from 18% to 15%, in addition to irregularities in sales by foreigners and pension funds, facts that increased concern among institutional investors regarding the company’s financial health.
Since BLACKPINK is an asset and property of the company, it is understandable that details of its ongoing negotiations are not revealed, however, this ambiguous response to the leaked information caused its shares to collapse by almost 20%, this being an irresponsible action towards shareholders.
