BTS pop band triggers $1.7bn rout after announcing solo stint | Business and Economy News

Shares of the company that manages the pop phenomenon tanked a report 28 % on information members will pursue solo tasks.

By Bloomberg

Shares of Hybe Co., the company that manages the South Korean pop phenomenon BTS, plunged by a report after the band stated they’ll concentrate on particular person tasks for some time.

Hybe sank as a lot as 28% on Wednesday in Seoul, headed for its lowest shut on report since its buying and selling debut in October 2020 and wiping out as a lot as $1.7 billion in market worth. The inventory is down almost 60% to this point this yr, considerably underperforming the broader fairness benchmark amid uncertainties about the way forward for the BTS juggernaut.

Hybe's shares have sharply underperformed the Korean benchmark in 2022

Within the 9 years since their debut BTS has racked up record-breaking hits and video views, together with the quickest accumulation of No. 1 songs on the Billboard Sizzling 100 since Michael Jackson. The group additionally grew to become the primary Asian group since 1963 to prime Billboard’s all-genre Sizzling 100 chart with their English-language single “Dynamite.” On the finish of Could the seven members met with Joe Biden within the White Home and spoke out in opposition to hate crimes.

Bangtan Boys, extra generally referred to as BTS, made the announcement to pursue solo tasks in a video posted on YouTube, which has already received greater than 10 million views. The singers stated the time aside can be wholesome for the band and urged followers to not view the event as detrimental.

“I felt like I wanted time to spend by myself,” the group’s chief RM stated within the hour-long video, which options the band discussing previous successes in addition to one another’s quirks whereas sharing meals and wine. “It’s not like we’re disbanding,” member Suga stated.

BTS will begin a brand new chapter, finishing up their particular person work in addition to group actions, Hybe stated in an announcement, in accordance with Yonhap Information. Shares pared losses following the report.

Cultural Loss

BTS is so big {that a} authorities minister fretted that it might trigger a “cultural loss for mankind” if the band needed to droop its work to enlist. Army service is necessary for all males in South Korea, which remains to be technically at struggle with North Korea.

The band’s oldest member Jin, 29, wants to enroll earlier than the top of this yr until a associated regulation is revised to permit for an exemption.

Worries in regards to the band’s future had battered the shares even earlier than Wednesday’s plunge because the company depends on the hitmaker for many of its gross sales. The droop implies that Hybe has given up nearly all of its positive factors since its buying and selling debut.

Hybe might face sharp downgrades to its revenue and income estimates this yr and subsequent yr, stated Lee Hyein, an analyst at Yuanta Securities Korea Co.

If Hybe confirms that BTS received’t resume live shows this yr, its income for this yr will possible be 25% decrease than beforehand estimated, whereas its revenue shall be lower as a lot as 33%, Lee wrote in a observe.

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