Big Hit Entertainment has been expanding its empire since 2019 began, they acquired GFRIEND agency not too long ago and rumors had it that they could be acquiring more agencies in the near future.
But why do some people believe Big Hit Entertainment could be acquiring Cube Entertainment soon? Cube Entertainment’s recent stock price surge has people wondering why it happened and some investment industry insiders talked about why it would happen.
On November 8, people noticed that Cube Entertainment stock price went up by 25.54% from the previous trading day, a weird phenomenon considering that nothing special happened to warrant the sudden spike in the stock price.
Official investment industry insiders predict that Big Hit would speed up its business diversification soon to minimize risks incurred by BTS pending military enlistment. Jin is supposed to enlist next year according to military laws which would naturally mean a significant decrease in profit since BTS won’t be able to promote as 7 soon. The fastest way to acquire talents in a short span of time would be through acquiring agencies that had already established themselves through their groups.
Big Hit is also set to debut a girl group soon as they are currently holding auditions for a new girl group. Big Hit is aiming to grow faster and it could be that they’re considering acquiring Cube Entertainment.
Big Hit hasn’t issued an official response to reports by Korean media on this subject yet. It remains something that investment insiders speculated on.
Do you think it’s a good idea for Big Hit to acquire Cube?