Is YG Entertainment Going Bankrupt? Low Operating Profit Draws Attention
With the reveal of YG Entertainment‘s Q2 (second quarter) operating profit for 2024, netizens are wondering if the entertainment label is at risk of bankruptcy.
It was shared that during the months of April to June, the company made about 300 million KRW, or about $217,000 USD.
Title: “‘BLACKPINK on hiatus’ YG Entertainment only earned 300 million won in operating profit in the second quarter?”
With the departure of BLACKPINK‘s members from the label for individual promotions, it seems that YG’s biggest source of income was really dependent on the girl group. While the label does still have artists like TREASURE, AKMU, WINNER, and rookie girl group BABYMONSTER, they just don’t bring in the same kind of revenue that BLACKPINK did.
The label reportedly does still have a market cap of 600 billion KRW (~$434 million USD), so it’s unlikely that they’re actually at risk of bankruptcy. But still, such a drastic decrease in their revenue so quickly is definitely a shock, and only time will tell if they’ll be able to bounce back from the loss of BLACKPINK’s members.
Here’s how Korean netizens are reacting to the information.
- “From the beginning, the current YG was not created by Yang Hyun Suk but by Teddy and BIGBANG ㅋㅋㅋ”
- “Honestly, without BLACKPINK, YG would be an unremarkable company.”
- “Yang Hyun Suk ruined everything. Where are BABYMONSTER and what are they doing?”
- “YG will continue like this for a while. BABYMONSTER is still a rookie group and TREASURE, AKMU, and WINNER are not groups that make a lot of money.”
- “I think YG needs to launch a rookie boy group soon.”
Do you think YG Entertainment is in trouble?
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