Posts by tetetete

Quote from L0ok

Yep there's precedent. With SM last year as well, everyone thought HYBE was the evil corp trying to steal SM away from Lee Sung-soo family. Turns out HYBE is the victim and SM were all crooks and conducted stock manipulation with Kakao.

HYBE is just bad at PR.

They should have just gave MHJ 2 options internally to either find investors to buy the remaining shares of the company at a price way above the market value or leave if she can't find the investors/gather the funds resign from the company.

They can't give options like this because what happens if other sub labels also want to divest from hybe? What hybe does with ador will set precedent on how other sub labels will view their "independence"

Quote from L0ok

Source timeline from reddit:

Timeline of MHJxHYBE until now, feel free to add or correct info

2017: Minji is already a Source Music trainee

July, 2019: Source Music is acquired by HYBE

2019: MHJ is hired by Source Music/HYBE

2019-2020: Trainees selected through the Hybe×Source Music joint audition (Hanni, Danielle, Haerin, Garam). Yunah & Youngseo are also said to be Source Music trainees from this era.

2020: Source Music x MHJ were preparing to debut a new girl group. During this process, all audition, trainee and initial expenses were billed to Source Music.

Mid 2020: New Jeans lineup is decided (including actress Ryu Han Bin). Girls start practicing their debut song "Attention", while still being part of Source Music. Yunjin is not selected and travels to the US.

November 2020: Gfriend releases Walpurgis Night, with Mago as their title track

2020-2021: Ongoing internal circumstances (a.k.a fights) between MHJ and Source Music executives. Bang PD takes the side of his long time friend, So Sungjin, Source Music CEO (https://m.youtube.com/watch?v=wjrIXNbkwd0)

January 2021: Eunchae becomes a Source Music trainee (https://twitter.com/pastelpick/status/1591371197748776962)

April, 2021: HYBE registers ADOR trademark on KIPRIS

May, 2021: Gfriend disbands. ADOR starts taking form

June-september 2021: MHJ and Source Music relationship ends. Rumours of Chaewon and Sakura joining HYBE. Yunjin is called back from the US. Yunah is transfered to Belift.

November 2021: ADOR was formally established, as a source music split and Minji, Danielle, Haerin and Hanni were transferred to ADOR from Source Music, along with some executives and staff. Ryu Han Bin is not selected.

The establishment costs (operating funds) of ADOR were also split from Source Music.

(https://twitter.com/adoriesroom/status/1459393719933808644)

December 2021: Source Music faced deficits as the planned debut group fell through, accumulating deficits accordingly.

With the contracts of GFriend ending and the planned debut group disappearing, the project was restarted as Le Sserafim (the concept and branding were based on what Bang Si-hyuk had envisioned from the beginning). Some of Big Hit's staff/employees were transferred to Source Music due to the lack of existing employees.

December, 2021: Kazuha becames a trainee.

December, 2021 - February, 2022: ADOR looks for a replacement for Ryu Han Bin. Youngseo is transfered from Source to ADOR, things dont work out and she goes to Belift. Finally, Hyein is picked as NJs final member.

March, 2022: HYBE announces Sakura and Chaewon have officially signed a contract with them

May 2, 2022: Le Sserafim debut

July 20, 2022: Garam is kicked out of Le sserafim

July 22, 2022: New Jeans debut

June, 2023: R U Next airs.

September, 2023: ILLITs name & lineup is decided

January 5, 2024: Youngseo is kicked out of ILLIT, after several threats about leaking pics and personal info.

March 25, 2024: ILLIT debuts

April, 2024: MHJ is accused of leaking trainees personal info, starting hate campaigns to HYBE idols and trying to takeover ADOR.

https://www.reddit.com/r/kpopt…&utm_content=share_button

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They made a whole mess while establishing lsfm and nj

Sounds like a lot of money was wasted while restructuring

Quote from DaisyTheGenuine

The way I've always understood it, SouMus debt largely came from the expenses needed to cast and debut LSF, in a similar vein to how Ador was in debt before NewJeans debut.

It was obvious that none of Gfriends original staff was still there by the time they disbanded but afaik none of them transitioned to Ador.

Wasn't the debt due to gfriend? I doubt they were making any profits selling max 80k-90k albums per comeback

Quote from Jackah

So apparently. Due to the multi-label system, their exclusive management contract is under the jurisdiction of ADOR. This means that Min Hee Jin does indeed have the power to terminate NewJeans’ contract with ADOR (and by wider umbrella, HYBE) if she so wishes. This is what many insiders may refer to as her “trump card” using NewJeans. If she terminates the contract between ADOR and NewJeans, Min Hee Jin is free to contract them to any new company that she creates outside of HYBE, which is what many believe that she is trying to do.

Even in the case where she chooses to do so, NewJeans will not be able to use their current name or songs, as all rights still belong to HYBE. A heavy penalty fee for breaking the contract will also probably ensue, and HYBE can additionally file to void the termination after gaining back control of ADOR after ousting Min Hee Jin.

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This would be very messy

Quote from paradis

Hive, KRW 850 billion evaporated after 'Min Hee-jin's Rebellion'...But BTS Jin and J-Hope are expected to see a rebound in stock prices throughout this year

Entered 2024.04.23. 4:56 PM
Modified 2024.04.23. 4:57 PM

Hive, KRW 850 billion evaporated after 'Min Hee-jin's Rebellion'...But BTS Jin and J-Hope are expected to see a rebound in stock prices throughout this year

Entered 2024.04.23. 4:56 PM
Modified 2024.04.23. 4:57 PM
Original text of article

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원본 이미지 보기Photo = Provided by Yonhap News

Investors' anxiety is growing due to the conflict between Hive and Adore CEO Min Hee-jin. However, the cracks in the profitable label, which exceeded 100 billion won in annual sales in just one year, are currently acting as a negative for Hive, but the stock price is expected to rebound in the long term as BTS members Jin and J-Hope are expected to resume their activities this year after their discharge from the military.

According to the Korea Exchange on the 23rd, Hive closed at 210,000 won, down slightly by 1.18% (2,500 won) from the previous trading day. It fell for two consecutive trading days, and the market capitalization of 853.8 billion won evaporated in two days.

This is interpreted to have been influenced by the conflict between the current management of Hive and Adore. On the 22nd, Hive sent an audit questionnaire to Adore CEO Min Hee-jin and executive A. This audit questionnaire is said to contain information about circumstances in which Adore's current management, including CEO Min Hee-jin, conspired to seize management rights, suspicions of external consulting, and personnel hiring irregularities. Hive not only sent an audit questionnaire, but also requested the resignation of CEO Min Hee-jin and the convening of a general shareholders' meeting to replace the current Adore board of directors.

As this news became known, Hive's stock price closed at 212,500 won on the 22nd, down 7.81% from the previous trading day.

Adore is an affiliated label created in 2021 by Hive, led by Chairman Bang Si-hyuk, by recruiting CEO Min (former art director and general director of SM Entertainment) and investing 16.1 billion won in capital. She is a member of New Jeans, a girl group launched by CEO Min. Adore showed rapid growth along with the popularity of New Jeans. Adore's sales announced by Hive last year were KRW 110.28334 billion, an increase of 491.7% from the previous year, and the net profit for the period was KRW 26.53401 billion, turning into a surplus. It is unprecedented speed for an entertainment company to achieve annual sales of 100 billion won in just one year. This is why this conflict is increasing investor anxiety. However, even if there is a conflict between the current management of Hive and Adore, the damage to Hive as a whole is expected to be minimal. This is because although Newgenes has the highest growth potential within Hive, it is not the top sales outlet. In fact, the label that generated the highest profits at Hive last year was Big Hit Music, which was also the predecessor of Hive. Despite BTS's military service, Big Hit Music recorded sales of 552.33591 billion won thanks to the solo activities of some members and the performance of their juniors, Tomorrow by Together. It is the largest amount among all of Hive's subsidiaries, as well as the label. The net profit for the period is 140.361 billion won, which is 5 times more than that of Adore. Moreover, starting from the third quarter of this year, BTS members will return one by one. Starting with Jin in June, J-Hope will return in October, and everyone will become civilians in June of next year. They were responsible for more than 80% of Hive's sales at the time of their full-fledged activities, driving the company's good performance, and are expected to resume their activities after being discharged, leading to a significant increase in sales. Seventeen is also alive and well. Seventeen recorded the highest album sales last year (15.93 million copies, based on Gaon Chart), increasing Pledis Entertainment's sales to 327.15583 billion won. This is a 124.6% increase compared to the previous year. Net profit for the period was also calculated at 60.281 billion won, the highest after Big Hit Music. The growth rate reaches 274.9%. In other words, although the stock price plummeted due to the conflict between the current management of Hive and Adore, there is a significant possibility of a rebound. It was worth noting that on the 22nd, when news of the conflict was announced, it fell 7.81%, but the next day it fell 1.18%. In addition, there is a slim chance that this situation will lead to Adore’s independence. Currently, Adore's shares are shared between Hive and CEO Min, with Hive's share being 80% (2.576 million shares). CEO Min, who purchased Adore stocks by exercising a call option (the right to buy stocks at a set price) last year, holds 18% (573,160 shares) of shares, and the remaining 2% (70,840 shares) of Adore shares. are held by other executives. Even if you combine all shares other than Hive, it is only about 20%. Unless Hive, which holds an 80% stake, sells Adore, the possibility of Adore becoming independent is virtually impossible. As panic sells have become more frequent, attention is being paid to how the stock price of Hive, a leading entertainment stock, will perform and how the Adore situation will be resolved. Reporter Jang Ju-yeon jang3@edaily.co.kr

https://m.entertain.naver.com/article/241/0003345886

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How the tables have turned 😂

Quote from TPHF

Mr. A's response:

(Seoul = Yonhap News) Reporter Tae-soo Lee = As the controversy surrounding New Jeans' agency Adore continues, the person who wrote an internal document containing circumstances of an 'attempt to seize management rights' has come forward to directly deny the allegations.

Mr. A, Adore's vice-president and a close associate of CEO Min Hee-jin, told Yonhap News on the 23rd, "The article in the 'Adore internal document' known through the media contains my personal concerns," and added, "I am concerned about the unresolved issues between Hive and Adore." “The background is concerns over a long-standing conflict situation,” he said.

He then claimed, “This is written based on my personal thoughts and experiences, and was not discussed with other executives of Adore, including CEO Min Hee-jin.”

Hive launched a surprise audit of Adore the day before and discovered internal documents written by Mr. A last month. These documents contain sentences such as ' How can we buy G·P' and 'How can we sell Hive?', and analysis has been conducted to support Hive's claim that it is an 'attempt to seize management rights.'

However, Mr. A drew the line at this as a 'personal writing' and 'a writing without consultation with CEO Min Hee-jin' and refuted that it was not in accordance with CEO Min's instructions.

Mr. A emphasized, "The content is not a document for reporting or sharing, and contrary to the grandiose name 'internal document,' it is a personal article that has not been shared with any of Adore's members."

He said, "A private 'memo' level article that was never put into practice was leaked to Hive simply because it was stored on a company laptop, and was packaged as if it were an 'internal document' for a grand conspiracy and mentioned in several articles. “I express deep regret that this is happening,” he added.

https://n.news.naver.com/article/001/0014648336?sid=103

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Why would he store it on the company laptop 🤣

Quote from TPHF

[Exclusive] Why did Min Hee-jin rebel against Hive? It all started with a ‘stock option conflict’

It was confirmed that the conflict between Hive and Min Hee-jin, CEO of its subsidiary Adore, originated from stock options. When Hive established Adore, it granted stock options to CEO Min, but CEO Min took issue with the fact that the stock options were too few and the tax rate was high, so the actual benefit was not great. Accordingly, Hive made a concession by selling stocks at a low price instead of granting stock options. Nevertheless, industry officials explain that the conflict could not be resolved.

According to the investment banking ( IB ) industry on the 23rd , CEO Min has held stock options since the establishment of Adore in 2021. In terms of stocks, it is said to have amounted to 15% of the company's total shares.

However, CEO Min argued that the shareholding ratio was too low compared to the credit for growing New Genes, so Hive granted additional stock options for 2022. It is known that when converted to stocks, the stake was close to 20%.

It is said that granting additional stock options was not a satisfactory alternative for CEO Min. Profits from exercising stock options are subject to comprehensive income tax, and the progressive tax rate approaches a maximum of 45%. From Representative Min’s perspective, half of it has to be paid in taxes. Accordingly, Hive canceled the grant of stock options early last year and sold the stocks to CEO Min at a low price through a resolution of the board of directors.

The reason Hive was able to sell stocks to CEO Min at a low price was because Adore was a loss-making company until the year before last. In 2022, Adore had an operating loss of 4 billion won and a net loss of 3.2 billion won. As there are no legal provisions explicitly specifying the method of calculating the value of unlisted stocks, the market value is generally assessed according to the Inheritance Tax and Gift Tax Act (Inheritance Tax and Gift Tax Act). According to the Stock Exchange Act, the market price is evaluated taking into account net asset value and net profit and loss value.

New Jeans debuted in August 2022. It is presumed that the two parties traded stocks after New Genes debuted. From Hive's point of view, in order to appease CEO Min, stocks whose value will rise rapidly in the future were handed over at a low price.

But Hive's efforts did not work. Early this year, a tip came to Hive that “CEO Min was planning to take over the company in collaboration with a private equity fund ( PEF ) manager,” and Hive is known to have attempted to quietly resolve the issue with CEO Min. An official in the entertainment industry said, “The conflict remained unresolved until A-Lit debuted in March, and since A-Lit’s concept was similar to New Jeans, CEO Min had a good excuse.”

It is known that CEO Min later tried to persuade the parents of New Genes members. In fact, on the 22nd, CEO Min emphasized that the members are with him, saying, “After sufficient discussion with the New Genes members and their legal representatives, I am announcing my position.”

https://n.news.naver.com/article/366/0000987728?sid=101

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This makes more sense than the illit reasoning

Is illit being a copy pasta of newjeans enough of an excuse to say newjeans is mistreated?

I'm still not convinced with min heejin's logic

Newjeans has the first movers advantage and they would always have it over illit

It's not like newjeans and illit were planning to do y2k concepts forever

Vminkook🥹

Impact!!

Quote from TPHF

Bit off topic, but this drama also reminded me again of a Billboard article I recently read. It talked about UMG"s reorganization and there was a part at the end which can be directly related to Hybe's system. Hybe aspires to be like UMG afterall. But I guess hybe wasn't so succesful in reminding everyone they're part of the same team lol.

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From a business pov, this is a failure of hybe's independent labels business model

They need to rethink

What type of impression does this give to zico's label, Ithaca and their Japanese label?

Bang pd is personally close to belift and source ceo but for the others this makes them rethink their decision to stay under hybe

A thread praising Lee soo many in this economy??

Doesn't make sense

I'm sure they planned to become a large firm soon...it would have probably happened faster if they were able to acquire sm

kakao as the external investor for mhj rumor is crazy if true

Wow this is good news

I assumed pannchoa owner wasn't Korean so k-pop companies couldn't sue them

Quote from dopiee

I had to give someone my akorns so I logged in

But I'm always here for Hybe and Bang PD downfall

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Btw how have you been?

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Quote from dopiee

How do you known they don't fight behind the scenes

WAit EVEN YOU ARE BACK

The whole SM-Hybe-Kakao saga was one thing but now inter-Hybe labels are also fighting openly?

Quote from 3ne

Come to think of it, MOAs started suspecting possible beef between MHJ and Bang last year after ADOR sabotaged Do It Like That's MV premiere, but nothing concrete happened after that, so everyone just sort of forgot about it

Then this year some rumors came out that made people think that ADOR is planning to make their own TXT, complete with their own Yeonjun

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And now MOAs are reminiscing about how since last year personal info about TXT kept getting leaked, and the amount of hate posting online about them increased dramatically out of nowhere. The dots are connecting

I'm too sick for popcorn right now, but I'm seated

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To be fair, didn't the bighit group which disbanded pre debut also have a yeonjun look-alike

It's pretty common in this industry to have companies debuting similar looking idols which is why mhj's argument over hair, makeup and event appearances seems pointless

Quote from atropos

She is using illit and all this copy cat issue to gain support if she can and deviate from the real accusations which could potentially land her up in jail.

Will hybe do all this just because she expressed her unhappiness over illit concept? Because that's what she is saying. Btw i don't think hybe is innocent either. None can be fully trusted.

Also some ppl r connecting youngseo departure from the group with all this as she was a ex-ador traniee after those articles came out about her getting access to trainee information.

Quote from atropos

She is using illit and all this copy cat issue to gain support if she can and deviate from the real accusations which could potentially land her up in jail.

Will hybe do all this just because she expressed her unhappiness over illit concept? Because that's what she is saying. Btw i don't think hybe is innocent either. None can be fully trusted.

Also some ppl r connecting youngseo departure from the group with all this as she was a ex-ador traniee after those articles came out about her getting access to trainee information.

Wasn't the youngseo issue related to the riize guy who is also on hiatus

I think it's a separate issue