How is acquisition make the acquired company broke though? Forced payment of dividend to parent? Technically with a parent in place, the company should have more available funding sources
Considering the CEO started broke, I don't see it shocking. He was probably promised about moon and stars. He may thought that Big Hit does the acquisition, Gfriend will re-peak and so on. Only buddies can speak of how much they spent the last year lol. It was truly a shock. 3 comebacks with extremely high quality promotion, new dorms, a lot of new printed merch, the freaking reality show memoria went on for a whole year and was filmed in expensive places, a lot of new employees, new trainees and auditions.... THAT speaks, plus Gfriend couldn't tour anymore due to the pandemic which restricted their main source of income
I'm not sure but people also say the mother agency takes 80% of the profit, that was why Woollim ended their contract with SM