HYBE Acquires Scooter Braun’s Ithaca Holdings
On April 2, it was announced that HYBE acquired Scooter Braun‘s Ithaca Holdings through its subsidiary, HYBE America. HYBE was formally known as Big Hit Entertainment, and under HYBE Labels it houses Big Hit Music, the home of K-pop groups BTS and TOMORROW X TOGETHER. Braun manages multiple artists through SB Projects including Justin Bieber, Ariana Grande, and Demi Lovato.
HYBE merged with Ithaca Holdings
Variety released an exclusive report about the merging of the companies on April 2. In the report, Variety shared that the deal between HYBE and Ithaca Holdings is worth over $1 billion.
“HYBE will acquire through HYBE America, its wholly owned subsidiary, a 100% stake in Ithaca Holdings and its properties, which includes SB Projects and management clients Justin Bieber, Ariana Grande and Demi Lovato, among others, as well as Big Machine Label Group,” wrote Variety. “The deal is said to be valued at more than $1 billion.”
The report continued, “Braun will join the board of HYBE and Scott Borchetta will remain CEO of Big Machine Label Group. Artists of both companies will participate in the capital increase of HYBE to further strengthen the ties between the two companies.”
Scooter Braun and Bang Si-Hyuk released statements
With the announcement, HYBE CEO Bang Si-Hyuk and Braun released statements to Variety about the companies’ future.
“The inevitable joining of HYBE and Ithaca Holdings marks the start of a new adventure no one could have possibly imagined. The two companies will work closely together leveraging our proven track records of success, know-how, and expertise to create synergy, transcend borders and break down cultural barriers,” said Bang.
In his statement, Braun thanked Bang and shared his excitement for future global opportunities, writing:
“This will be the first time HYBE’s groundbreaking systems and curation will be integrated in the U.S. market at the onset of an artist’s career. Plus, it will help us to continue to further the careers of the artists we already work with. Global opportunities for artists become exponential with this partnership. This is an opportunity for us to make history and further innovate the music industry and revolutionize the game itself. Its implications for the business will be monumental for a long time to come. I am incredibly grateful for Chairman Bang’s friendship and his willingness to support the creative journey of an artist.”
How HYBE is organized
On March 18, it was announced that Big Hit Entertainment would rebrand as HYBE, and the music aspect of the company would continue on as Big Hit Music.
“What we think of as variation of music is that of the infinite realm, and I think the name Big Hit Entertainment cannot fully capture this concept,” Bang said during the “HYBE: New Brand Presentation.”
HYBE has three different divisions: Labels, Solutions, and Platforms. Big Hit Music resides under HYBE Labels along with Source Music, Pledis Entertainment, Belift Lab, Koz Entertainment, and HYBE Labels Japan.
HYBE America, which houses Braun’s Ithaca Holdings, is a separate subsidiary.
