BigHit presents its IPO, what does it mean and how will it affect BTS? The new business strategy can benefit but also harm the company. BigHit could have filed its first IPO , the sale of shares to the public . What does this mean?
The popularity of BTS has increased considerably, also that of TXT, even the profits of the company have allowed it to acquire Source Music and Pledis, agencies that handle groups like SEVENTEEN and GFriend.
What is an IPO?
Since the beginning of the year, Korean media reported BigHit’s intention topresent its IPO, the public sale of its shares in order to raise more profits for their projects, that is, that entrepreneurs or interested parties will provide the economic strength that the company needs to grow up.
Apparently, the company has already filed its first IPO,although the result of the operation is confusing due to the coronavirus and the various sectors that have been paralyzed after the pandemic, but BTS’sreputation is expected toattract investors.
However, this could harm the company and its artists, since being a business issue, news or accusations against BigHit and BTS could begin to circulate on social networks or media in order to reduce their market value. .
Therefore, it is important to take the necessary legal measures to end defamation, BigHit has already launched its plan to denounce the group’s detractors, filing lawsuits and removing content that may be harmful to its artists.
There is no official report yet, but the agency no longer wants to be from the private sector, it wants stakeholders to invest in order to grow and have a bigger offer using the reputation of their groups.
But the group not only has a great presence in economics, its popularity has been an inspiration for university studies, Harvard aims to analyze the impact of the group. With the IPO filing, it is also predicted that BigHit could go through a negative streak in its earnings while the Covid-19 lasts and the first offers to invest are presented.