BTS pop band triggers $1.7bn rout after announcing solo stint

Shares of the company that manages the pop phenomenon tanked a report 28 p.c on information members will pursue solo initiatives.

Within the 9 years since their debut, BTS has racked up record-breaking hits and video views [File: 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 initiatives 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 practically 60% to date this 12 months, considerably underperforming the broader fairness benchmark amid uncertainties about the way forward for the BTS juggernaut.

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 Scorching 100 since Michael Jackson. The group additionally turned the first Asian group since 1963 to high Billboard’s all-genre Scorching 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 towards hate crimes.

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

“I felt like I wanted time to spend alone,” 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 a press release, in response to 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. Navy service is obligatory for all males in South Korea, which remains to be technically at warfare with North Korea.

The band’s oldest member Jin, 29, wants to enroll earlier than the top of this 12 months until a associated legislation 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 signifies that Hybe has given up virtually all of its beneficial properties since its buying and selling debut.

Hybe might face sharp downgrades to its revenue and income estimates this 12 months and subsequent 12 months, stated Lee Hyein, an analyst at Yuanta Securities Korea Co.

If Hybe confirms that BTS gained’t resume live shows this 12 months, its income for this 12 months will possible be 25% decrease than beforehand estimated, whereas its revenue will likely be lower as a lot as 33%, Lee wrote in a word.