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YG Will Need to Pay Back Louis Vuitton $50 Million if Stocks Don't Recover

SeoulzJun 16, 2019, 7:41:27 AM

In October things could get ugly for YG Entertainment.  If YG's stock continue to drop, Louis Vuitton Moet Hennessy (LVMH) who invested $50 million into YG Entertainment could get their money back WITH interest.  

Yang Hyun Suk Steps Down but Stock Continues to Fall

Yang Hyun Suk stepping down from YG was their last ditch effort to stop the drop of their stock.  It has not worked.  Even tho he resigned he is still the majority shareholder at YG Entertianment.  Here is how YG's shares breaks down.  

Yang Hyun Suk (17.3%)

Naver (9.13%)

Shanghai Fengying Business Consultant Partnership Ltd. (8.10%)

National Pension Service of Korea (6.52%)

Tencent Holdings Ltd. (4.42%)

Yang Min Seok (3.56%)

Great World Music Investment Pte Ltd (3.56%)

Norges Bank Investment Management (1.48%)

The Vanguard Group (1.46%)

YG Stock Continues to drop in 2019 

YG's stock price was around 48,000 won ($40) at the start of 2019.  Then towards the end of January is when the Seung Ri "Buring Sun" scandal happened.  Since then the price has dropped to 30,000 won.  Recently there was another scandal this time with BI of iKON.  How low it will go from here no one really knows.  

YG needs to do all they can to get the stock price back to around 44,000 won (the price they invested in) by October.  If Louis Vuitton ends up sueing YG, this news could futher send the stock prices down. Then, YG's only hope if for another K Pop Entertainment company to buy YG.  YG still has a great collection of singers, actors, and songwriters.  There could be a bidding war between SM, JYP, and BitHit to acquire YG's top talents like BLACKPINK.  

All this scandal must be taking a toll on the other YG artists who are completely innocent.  A few bad apples does not represent all the hard working people at YG.