Investing.com-- Shares of South Korean entertainment agency YG Entertainment Inc (KQ:122870) rallied over 20% on Wednesday after the firm said it had signed a new, exclusive contract with all four members of hit music group Blackpink.
The firm said in a disclosure statement that its board had agreed to the signing of an exclusive contract with Blackpink, ending months of speculation over whether the group would stick with YG after their contract ended earlier this year.
Blackpink is one of the most successful all-female music acts in the world, with an audience well beyond its South Korean market. The group had debuted under YG in 2016, and has since seen stellar success in album sales and music video views.
The group’s four members- “Jisoo, Jennie, Rosé and Lisa have all signed a renewed contract with YG.
The entertainment label has several other major South Korean artists and actors under its belt, including BigBang and BabyMonster. It found international success in 2012 on the back of the viral sensation “Gangnam Style,” which remains among the most-viewed videos on streaming site Youtube.
YG’s shares jumped nearly 23% to 58,900 won, and were also headed for their best session in over a decade. The stock vastly outperformed a 0.5% rise in the broader KOSPI index.
Speculation over Blackpink’s contract had driven YG’s stock to a near 11-month low earlier this week.
Shares of South Korean conglomerate Naver Corp (KS:035420), which owns a nearly 9% stake in YG, rose 0.5%, while Chinese internet giant Tencent Holdings Ltd (HK:0700), which has a 4.3% stake in the firm and also distributes its music in China, fell 0.7%.
Stock market gains on the back of music acts have been a recurring factor this year. American move theatre chain AMC Entertainment Holdings Inc (NYSE:AMC) clocked strong gains earlier this year after it said it had sold more than $100 million in advance tickets for a concert movie of Taylor Swift's The Eras tour.