Baby Monster will always be Blackpink's shadow, making YG humiliated and having to ask 2NE1 for help?

After Blackpink temporarily suspended activities, YG had to face serious trouble. Despite spending a lot of effort and money investing in Baby Monster with the desire to replace its seniors, revenue and profits still decreased significantly.

Specifically, according to stock predictions, YG Entertainment will have extremely poor performance in the second quarter of 2024. The Kpop industry estimates YG's second quarter operating profit to be only about 300 million won.

Kim Hye Young - researcher at Daol Investment & Securities, said: "The delay in replacing the IP (innovative product) generation has led to YG's performance freezing."

According to the securities industry, YG achieved revenue of about 100 billion won this quarter but left very little profit due to high investment costs.

Blackpink, the top earning group for YG, currently all 4 members (Jennie, Jisoo, Lisa, Rosé) are working independently. Because Blackpink has not had group activities since the end of last year, sales have decreased significantly.

Rookie Baby Monster (Rami, Asa, Rora, Ruka, Ahyeon, Pharita, Chiquita) continued to promote the new song and the company spent a lot of money. However, the group does not bring in any special profits except albums, digital music and tours to meet fans.

Blackpink doesn't make money and spending huge investment money on Baby Monster is inevitable that YG has to face.

Because of this situation, stock prices also plummeted. YG's stock price increased to 97,000 won last May, and is now down 62% to 35,000 won in just over a year.

Blackpink's departure from individual activities at YG was a fatal blow to the decline in the company's stock price.

According to the report, YG still has a market capitalization of 600 billion won, so it's unlikely they're actually at risk of bankruptcy. But the sharp drop in revenue was certainly a shock.

According to Ten Asia, what YG needs most right now is to promote Baby Monster. Only if Baby Monster takes the lead can the company get back on track and achieve sustainable growth.

The problem is that Baby Monster's growth momentum in the market is still not strong. The group's presence in Korea is very small compared to other girl groups such as aespa, LE SSERAFIM, NewJeans. Although Baby Monster is still receiving positive feedback abroad, it is too early to consider them a top group.

However, the situation is likely to improve as Baby Monster plans to release a full album in the second half of this year, and looks forward to a tour next year.

Above all, Blackpink, which is YG's guaranteed source of profit, is expected to release an album next year and hold a tour related to the album.

Finally, Ten Asia commented: "The undeniable truth is that YG had surprisingly poor results in this second quarter.

The most important thing now is the appearance of a new group that will lead Kpop. YG certainly has a glorious history, but that's just the past. They can't rely on Blackpink anymore. YG really needs a new trump card."

In addition, there are many predictions that YG will launch a new group next year. The news of 2NE1 reuniting with a special project is also expected to bring vitality to YG.

Specifically, recently, fans spread a photo of 2NE1 leader CL at YG Entertainment headquarters. This photo was quickly shared at breakneck speed, many people questioned that with CL appearing at YG, is it possible that 2NE1 is about to have a reunion on the occasion of their 15th debut anniversary?

In the viral photo, CL appeared wearing a hoodie with her signature long blonde hair. Many people spotted the female rapper entering the YG building with a few others. Below the post, many comments expressed excitement, hoping that 2NE1 will truly reunite this year.

Not long ago, YG confirmed that 2NE1 members had a meeting with Yang Hyun Suk at the company building. The conversation took place within two hours, promising to bring good news to fans in the near future. Up to now, CL has met and talked with YG 3 times. Therefore, fans are currently looking forward to the latest announcement from both sides.

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