2024-04-23 15:03:16
While some Adore executives, including CEO Min Hee-jin, are in sharp conflict with Hive as they are being audited for their ‘attempt to leave Hive’, attention is also being drawn to the actions of the group Newgenes.
According to Hive on the 22nd, Hive began an audit of Adore’s management, CEO Min and executive A. The Hive audit team visited Adore management and worked to recover computer assets and secure face-to-face statements. The Hive audit team exercised this audit authority after detecting circumstances in which Adore executives leaked confidential contracts and induced Hive to sell Adore stocks held by Hive. Hive also understands that Mr. A used his position to pass on Hive’s internal information to Adore.
In the industry, it is believed that Hive judged that this action by Adore management was an attempt to so-called ‘de-Hive’ and seize management rights over Adore, and took immediate action. The Hive audit team is said to be considering legal action if necessary after analyzing the computer assets secured that day.
In addition, Hive requested the Adore board of directors to convene a general shareholders’ meeting. In addition to requesting to convene a general shareholders’ meeting, Hive also sent a separate letter that day requesting CEO Min’s resignation.
If the resignation is accepted, it is highly likely that CEO Min will leave Adore due to the current atmosphere.
Adore is a company created in 2021 by Hive, chaired by Bang Si-hyuk, with an investment of 16.1 billion won in capital. Currently, CEO Min holds 18% (573,160 shares) of Adore stock, making him the second largest shareholder. In the first quarter of last year, Hive reduced its 100% stake in Adore to 80%. CEO Min exercised a call option (the right to buy stocks at a set price) and purchased an 18% stake in Adore.
Adore recorded sales of 110.2 billion won, operating profit of 33.5 billion won, and net profit of 26.5 billion won in 2023. Considering that Adore currently has only one artist, New Genes, it can be seen that most of the sales were achieved by New Genes.
New Jeans, who debuted in 2022, created a sensation right from their debut and received great love at home and abroad with numerous hit songs. Although their exact contract period is not known, usually in the music industry, contracts are signed for 7 years after debut. This is because the standard exclusive contract limits the period to a maximum of 7 years.
Considering NewJeans’ sales last year and the remaining contract period, there is a possibility that if Hive wants to leave Adore, which currently holds an 80% stake, it will have to pay a large penalty unless there are special reasons. Accordingly, the prevailing opinion in the music industry is that it would be realistically difficult for New Jeans, who are currently enjoying the greatest popularity, to leave Adore even while enduring these issues.
Among these, New Jeans is scheduled to make a comeback in May, so attention is being paid to whether their schedule will be disrupted. According to the industry, there has been no change in New Genes’ comeback schedule so far. However, it is unclear what will happen in the future as a variable called ‘hive internal corruption’ arises.
Meanwhile, CEO Min’s side issued a statement on the 22nd and stated that they were trying to fire him after Aylet, a member of the Hive label Belif Lab, raised the issue of copying New Genes. CEO Min denied Hive’s attempt to seize management rights as the reason for the audit, calling it “absurd.”
(Seoul = News 1)
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2024-04-23 15:03:16