NewJeans’ possible exit from ADOR estimated to cost 35 billion KRW to entertainment giant HYBE; Know more

In light of primarily the most recent feud between Min Hee Jin and HYBE, financial files prognosis claims if NewJeans decides to fragment solutions with ADOR, the parent firm could maybe furthermore face a wide loss. Per a most modern yarn, the firm could maybe furthermore lose around 35 billion KRW, if the girl team decides to go away the company after their demands weren’t met.

Per Korea JoonAng Day-to-day, fair fair nowadays NH Funding & Securities downgraded HYBE’s purpose portion worth following the firm’s dispute with outdated ADOR CEO Min Hee Jin. In light of the scenario, the financial company excluded the girl team from its projection.

In a yarn released on September 26, NH Funding & Securities slashed the firm’s predicated portion worth by 4 per cent, from 280,000 KRW to 270,000. This calculation excluded NewJeans’ upcoming activities that would comprise contributed to HYBE’s revenue including – the doable sales worth of a corpulent-length album that the team previously deliberate to unlock within the 2d half of of 2024, a world tour, and new song that used to be scheduled for 2025.

It used to be previously estimated that including all these activities from NewJeans would elevate HYBE 10 billion KRW in working revenue for the 2d half of of 2024 and an further 25 billion KRW in 2025 – a total fo 35 billion KRW. So, if the girl team decides to go away the firm, they’ll lose up to this whopping amount in revenue.

NH Funding & Securities analyst Lee Hwa Jeong stated “Assuming the worst-case scenario with a conservative scheme, we comprise lowered the firm’s efficiency estimate below the premise of NewJeans’ absence.”

Meanwhile, HYBE has been embroiled in a licensed fight with outdated ADOR CEO Min Hee Jin for months. The long-going conflict resulted in her dismissal from the CEO self-discipline, which used to be then replaced by interior director Kim Joo Young.

NewJeans, who didn’t appreciate this new administration change, held an emergency are residing, giving HYBE an ultimatum that she must be reinstated by September 25. Min Hee Jin herself filed for an injunction for the an identical.

Nonetheless, on September 25, ADOR’s new administration declared that the resolution used to be taken by the board of administrators, so her reappointment as the CEO is ‘no longer acceptable’. On the an identical time, they’ve also affirmed that Min Hee Jin will continue to attend as NewJeans’ interior director for the following five years, the duration of their remaining contract.