Market cap

BTS’ Management Label HYBE Loses $1.7 Billion In Market Cap

Following BTS’ announcement of a “pause,” their management label HYBE Co. lost $1.7 billion in market capitalization, a massive drop that didn’t reverse even after the group clarified. : “We do not dissolve”.

The company’s share price fell 28%, The New York Times reports, hitting an all-time low of around $108 (139,000 won) per share. HYBE, which was founded as Big Hit Entertainment and changed its name in 2021, made around $1 billion last year, with BTS alone accounting for a 58% increase in revenue over 2020. .

The news is seen as a bearish sign for the South Korean economy, where BTS brings in around $3.5 billion a year. The Korea Institute of Culture and Tourism had thought the Bangtan Boys would generate even more revenue as pandemic restrictions eased, noting that a single BTS concert could bring in $500 million or more.

On June 14, BTS posted a video in which they discussed taking a break to pursue solo projects. “I think we should spend some time apart to learn how to be one again,” J-Hope said. “I hope you don’t see this as a negative thing and see it as a healthy plan. I think BTS will get stronger this way.

SUGA added, “It’s not like we’re dissolving!” But the announcement was quickly viewed through a pessimistic lens, and South Korean media linked the hiatus to the group’s oldest member, Jin, who is expected to enlist in compulsory military service by the end of the year.

In an attempt to quell their fans’ panic, BTS released a second statement on June 15, noting that the seven will “remain active in various formats,” including as a group. There may be less anxiety among BTS ARMYs, but HYBE stock price hasn’t rallied.

This “second chapter” has already begun and J-Hope is set to headline Lollapalooza’s closing party as a solo artist. Last week, the group unveiled the compilation album EVIDENCE.