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Will BigHit go public with BTS fever?

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By Jhoo Dong-chan

K-pop sensation BTS has topped the U.S. Billboard 200 Album chart with its latest album "Map of the Soul: Persona" and is likely to do the same in the U.K.'s Official Albums Chart.

It was the third time that the seven-member boy band has topped the Billboard chart, after "Love Yourself: Tear" last May and "Love Yourself: Answer" in September.

Thanks to the band's global popularity, its agency BigHit Entertainment enjoyed 214.2 billion won ($188.6 million) in sales, with a 64.1 billion won operating profit, in 2018. It was the firm's highest earnings since it was established in 2005.

Share prices of BigHit Entertainment's second-largest shareholder Netmarble and the agency's subsidiary Stream Media Cooperation also jumped sharply immediately after the release of the BTS latest album on April 12. Keyeast Entertainment, which supported the idol group's entry into the Japanese market, also enjoyed a huge leap in its share price.

More investors are showing interest in whether BigHit Entertainment will go public soon. But analysts said the move is unlikely, considering the firm's cash flow.

"We haven't heard anything about its initial public offering (IPO) plan," said a major securities firm's IPO division official, who asked not to be named.

"The cash flow is pretty solid considering its earnings last year," the official said. "I understand BigHit Entertainment is not managing many artists at the moment. It doesn't need an immediate cash injection now. I don't think it will go public anytime soon."

An entertainment industry insider agrees.

"BTS keeps the agency busy enough," the insider said. "There is no reason for it to go public, adding another fuss to its to-do list.

"The members of BTS will join the military within three or four years. BigHit does not have any backup artists to replace BTS after they enlist. I believe the firm will go public by the time the band members start their mandatory military service."

Pre-orders for the new BTS album before its official release last week reached over 3 million. The album, featuring two high-profile collaborations with international pop stars, Halsey and Ed Sheeran, almost instantly rocked the world.

BTS will begin its second world tour, "Love Yourself: Speak Yourself," May 4. Starting with gigs in Los Angeles, the band will also hold concerts at the 90,000-seat Wembley Stadium in London in June.


Jhoo Dong-chan jhoo@koreatimes.co.kr


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