Shares of BTS’ Agency HYBE Drops Massively After Boy Band Announces Hiatus
KEY POINTS
- HYBE shares were trading at $108 each reducing its market value by $1.7 billion
- The company's shares had peaked at $326 each in November 2021
- The loss can be offset if a BTS member releases at least one solo album this year
The stock value of HYBE, BTS’ entertainment agency fell by 28 percent in Seoul on Wednesday after members of the boy band announced they will be focusing on solo projects for an indefinite period.
As the value of shares plummeted, it effectively wiped $1.7 billion off its market value, Bloomberg reported. The company's stock this year is down by more than 60 percent so far, following a peak at $326 in November 2021.
The seven-piece act announced their temporary break in a video released Tuesday as part of their ninth-anniversary celebration.
The shares plummeted during intraday trading to $108 each, the lowest close since the label went public in October 2020, as per Korea JoongAng Daily. A financial analyst said the loss in earnings can be offset if a member of the group releases at least one solo album this year.
“The temporary break is likely an indirect way of expressing the need to join the military,” Lee Ki-hun, of Hana Financial Investment told Korea JoongAng Daily. “The 2022 earnings can be partly offset as there is a possibility the members may release at least one solo album this year if they join the army in 2023.”
In their nine years in the industry, BTS has produced multiple record-breaking hits, with their tracks uploaded on YouTube clocking in billions of views. The group has also consistently topped multiple music charts across the world.
The K-pop supergroup earned a whopping $170 million in 2019. They were also the first Asian act to top Billboard’s all-genre Hot 100 chart in 2020 with their first English single, “Dynamite.”
In 2020, BTS ranked 47th on the Forbes list of highest-paid celebrities in the world, with estimated earnings of $50 million.
Dancer J-Hope is reportedly the richest member of the group with an estimated net worth of $26 million in 2021. J-Hope’s solo mixtape, “Hope World” released in March 2018 contributed much to his net worth, the South China Morning Post reported.
On Wednesday, HYBE clarified the group is not going on a hiatus as they will still be promoting team projects aside from doing solo work.
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