YG Entertainment experienced a decline of over 7% following the news of the expiration of the exclusive contract with their artist, BIGBANG’s G-Dragon.
On the day YG released the statement, they closed at 84,600 won [$64], a 7.14% decrease from the previous trading day.
A representative from YG Entertainment told news outlets, “Currently, G-Dragon’s exclusive contract has expired. However, we are cooperating through separate contracts for advertisements and other activities.”
The representative further stated, “We plan to negotiate additional contracts when resuming music activities. YG Entertainment will spare no support for that.”
Meritz Securities, Mirae Asset Securities, and Hana Investment Securities have raised their target prices for YG Entertainment to 100,000 won, 120,000 won, and 110,000 won, respectively.
These adjustments are based on the expected strong performance in the first quarter, revenue from performances by artists such as BLACKPINK, and the upcoming debut of the rookie group, BABYMONSTER, reflecting the outlook for future performance improvement.
Source: (A)
