Shares of HYBE saw a substantial increase of 18.4% during the week ending October 31, following a South Korean court’s ruling that prevented K-pop sensation NewJeans from leaving its parent company, HYBE imprint ADOR. This decision comes after the members of NewJeans sought to sever ties with HYBE, particularly after the dismissal of their mentor, ADOR CEO Min Hee-jin, in April 2024.
The court’s ruling ensures that ADOR will retain NewJeans until the end of their exclusive contract in 2029. The judges concluded that the group’s personal loyalty to Min Hee-jin did not legally compel them to grant her continued leadership, stating that this devotion did not significantly impact their contractual obligations. The favorable ruling added an estimated $1.5 billion to HYBE’s market value, alleviating fears among investors regarding potential repercussions for other acts under the HYBE umbrella if the ruling had gone the other way.
Despite HYBE’s significant stock growth, the overall 19-company Billboard Global Music Index remained steady at 2,845.53. Music-related stocks were mixed, with only a couple of companies experiencing major fluctuations outside the typical variations. Major market indexes, such as the Nasdaq and S&P 500 in the U.S., reported gains, underscoring a broader recovery compared to the music sector.
In other market movements, SiriusXM shares rose by 1.4% to $21.69 after showcasing a mixed trading week. Following a strong showing in its third-quarter results, SiriusXM provided an updated forecast that boosted investor confidence, despite observing a decline in share value the following day.
Universal Music Group’s stock faced a setback, falling 2.3% to 23.27 euros ($26.99), even though it had shown a slight rise after reporting robust third-quarter earnings. Meanwhile, Spotify’s stock gained 1.5% to $655.32, buoyed by news of upcoming price increases in the U.K., helping it recover from a previous dip.
On the downside, iHeartMedia experienced the largest drop among live music companies, plummeting 12.4% to $2.97 but maintained a notable year-to-date growth of 39.4%. Most live event stock values declined, with Live Nation and MSG Entertainment both seeing losses ahead of their anticipated earnings reports.
As the music industry navigates these financial fluctuations, it’s clear that the outcomes for major players like HYBE and NewJeans create a ripple effect, impacting investor sentiment and the broader market landscape.