HYBE America (formerly Big Hit America) has reportedly acquired Scooter Braun's Ithaca Holdings (EXCLUSIVE)

[satoori]

HYBE announces it has taken over Big Hit America & will merge with Ithaca Holdings, a major U.S. investor whose chairman Scooter Braun manages pop stars Ariana Grande & Justin Bieber.

HYBE shares, "This is a move to actively jump into the US market. Details will be shared later."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.

 

 

 

 

Articles - 

[Variety] HYBE, Formerly Big Hit Entertainment, Merges With Scooter Braun’s Ithaca Holdings Bringing Together BTS, Justin Bieber, Big Machine

Spoiler

HYBE, the company known as Big Hit Entertainment which is home to BTS, the South Korean pop group, has merged with Ithaca Holdings, the company led by SB Projects founder Scooter Braun. In the deal, HYBE will acquire through its HYBE America, its wholly owned subsidiary, a 100% stake in Ithaca Holdings and its properties, which includes SB Projects, whose management clients include Justin Bieber, Ariana Grande and Demi Lovato, among others, as well as Big Machine Label Group.

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, according to a release announcing the deal.

Said HYBE chairman and CEO Bang Si-Hyuk: “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 tog ether leveraging our proven track records of success, know – how, and expertise to create synergy, transcend borders and break down cultural barriers. Please look forward to the endless possibilities of HYBE and Ithaca Holdings, and the new paradigm the partnership will establish in the music industry.”

Added Braun: “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 opportuni ty for us to make history and further innovate the music industry and revolutionize the game itself. Its implications for the business will be monumentous 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.”

The deal encompasses a range of services including management, label services and publishing for a combined roster that includes BTS, TXT, SEVENTEEN, among other HYBE acts, with Justin Bieber, Ariana Grande, J Balvin, Demi Lovato, Thomas Rhett, Florida Georgia Line, Lady A and more artists on the SB Projects and Big Machine rosters.

As part of the transaction, The Carlyle Group will sell off its minority stake in Ithaca Holdings. It had initially invested in the company in 2017 via its Carlyle Partners VI fund.

“For 15 years, I have worked alongside Scooter helping him build a best-in-class entertainment company and phenomenal team of which we are both immensely proud,” said Allison Kaye, partner at Ithaca Holdings and president of SB Projects. “We have launched amazing careers and brands and released incredible content into the world. We are ecstatic to have this new opportunity to partner with Chairman Bang and Big Hit to further the global reach of both companies and the artists with whom we have the privilege of working as we continue to grow our company and their careers across entertainment, technology, commerce and content. Thank you to Scooter, Chairman Bang and everyone involved – we are beyond grateful for the opportunity.”

Added Jen McDaniels, general manager, SB Projects: “After many years working independently, I decided to join the SB projects family, not only because of my long standing relationships with Scooter and Allison or their success but for the commitment and dedication they’ve shown to their artists. I feel so fortunate that after three years with this company, we have found a partner across the world who shares those same values. This is such a unique and fortuitous joining of forces, I really cannot express how excited I am for what the future holds.”

Big Hit’s name change to HYBE was to be addressed at a general shareholders meeting on March 30. The impetus for the change reportedly stems from the Korea Exchange-listed company’s desire to position itself as a company that has expanded beyond mere artist management to realize its ambitions of becoming a more comprehensive lifestyle platform. Korean reports state that Big Hit plans to branch out from music production, distribution, artist management, live performance management, internet tech and e-commerce to become more involved in areas such as travel, real estate, and other types of communications.

Founded in 2005, Big Hit started as an underdog firm in Korea’s pop music world, where three major talent management firms dominated K-pop. Its status changed, however, as its boy band BTS rocketed to stardom. Big Hit continues to rely on the boy band for the majority of its revenue.

The company went public in October with a $820 million offering that was South Korea’s largest in three years. Despite the initial hype, its stock has roller-coastered dramatically since. After a surge at the trading debut, the shares sank through the last months of 2020, before staging a spectacular rally from late January 2021, reaching a new high point in mid-February. At KRW205,000 as of Thursday morning local time, the price is 52% above the IPO price of KRW135,000, and gives the company a market capitalization of KRW7.29 ($6.4 billion).

source: https://variety.com/2021/digital/news/hybe-formerly-big-hit-entertainment-acquires-scooter-brauns-ithaca-holdings-bringing-together-bts-justin-bieber-big-machine-1234943092/

 

[Markets Insider] HYBE And Ithaca Holdings Join Forces To Lead The Global Music Industry Innovation

Spoiler

SEOUL, South Korea, April 2, 2021 /PRNewswire/ -- HYBE (formerly Big Hit Entertainment), a South Korean entertainment lifestyle platform company, is joining forces with Ithaca Holdings, a fully integrated media company with interests across music, tech, film, television, brands and culture led by SB Projects' founder Scooter Braun. As part of this historic international deal, HYBE will acquire through its wholly owned subsidiary HYBE America, a 100% stake in Ithaca Holdings and its properties such as SB Projects and Big Machine Label Group. Ithaca Holdings CEO Scott "Scooter" 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.

Regarding the newly integrated partnership, HYBE Chairman & CEO Bang Si-Hyuk commented, "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. Please look forward to the endless possibilities of HYBE and Ithaca Holdings, and the new paradigm the partnership will establish in the music industry."

HYBE has exhibited an interest in Ithaca Holdings from the beginning as a pioneering music industry innovator with an emphasis on artist branding. As Ithaca Holdings reciprocated interest, the deal rapidly came to fruition. Ultimately, the partnership unites two of the industry's top innovative companies around a common goal.

Braun added, "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 monumentous 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."

Allison Kaye, Partner Ithaca Holdings said, "For 15 years, I have worked alongside Scooter helping him build a best-in-class entertainment company and phenomenal team of which we are both immensely proud. We have launched amazing careers and brands and released incredible content into the world. We are ecstatic to partner with Chairman Bang and HYBE to further the global reach of both companies and the artists as we continue to grow our company and their careers across entertainment, technology, commerce and content."

The deal brings together a range of services including management, label services and publishing for global artists BTS, TXT, SEVENTEEN, NU'EST, GFRIEND, ENHYPEN, ZICO, Justin Bieber, Ariana Grande, J Balvin, Demi Lovato, Thomas Rhett, Florida Georgia Line, Lady A and more. With Ithaca Holdings, HYBE sets an important stepping-stone in expanding into the global market and establishes a global top-tier multi-label structure. Ithaca Holdings' market and industry expertise will expedite HYBE artists' entry in the U.S. market and beyond and solidify HYBE's competitiveness in the global market.

As part of the transaction, The Carlyle Group will sell its significant minority stake in Ithaca Holdings, after initially investing in the company in 2017 by way of its Carlyle Partners VI fund.

About HYBE
HYBE, formerly known as Big Hit Entertainment, is an entertainment lifestyle platform company that innovates the music industry under the mission "We believe in music". The company was listed on the KOSPI Market of Korea Exchange (KRX) in October 2020. HYBE has established its business ventures in entertainment lifestyle upon three pillars. The label division brings creatives centered around music and artists such as BTS, TOMORROW X TOGETHER, SEVENTEEN, GFRIEND, ENHYPEN and ZICO. Solution operates specialized business units for video content, IP, learning and games. The platform division connects and expands all of HYBE's contents and services. Based on organic operations and synergies created in each field, HYBE aims to create top-notch content, expand fan experience, and make a difference for anyone who enjoys music-based entertainment lifestyle.

About Ithaca Holdings
Ithaca Holdings LLC. is a fully integrated holding company with interests across music, tech, film, television, brands and culture. Led by SB Projects Founder Scooter Braun, who manages some of the biggest names in pop-culture including Justin Bieber, Ariana Grande, Demi Lovato, Tori Kelly, and J Balvin among others, Ithaca has built an elite portfolio of acquisitions and partnerships resulting in one of the most powerful and diverse holding groups in entertainment and media. Ithaca has interests in a number of companies including Scott Borchetta's Big Machine Label Group, Mythos Studios co-founded by Marvel Studios Founding Chairman David Maisel as well as Big Machine Publishing and 100 Thieves Gaming.

https://markets.businessinsider.com/news/stocks/hybe-and-ithaca-holdings-join-forces-to-lead-the-global-music-industry-innovation-1030271562?op=1

 

Edited April 2, 2021 by satoori
added another article.

[satoori]

o.o bighit bought scooter...who would of thought that would ever happen...this is a major move in the industry...

 

so the rumors about collabs with ariana and jb i guess was sort of true...

[satoori]

OT: It was reported that Tiktok and Disney previously wanted to acquire Ithaca holdings...but in the end..

[satoori]

hmm i wonder if any of this will relate to the new announcement...

 

Feb 2021 - BigHit and Universal Music (UMG) are planning to debut a new boy group that will include an audition program planned for 2022 with U.S. media partners. cr.
 

March 2021 - Warner Bros will reportedly invest upto 500B KRW in HYBE (prev BigHit Ent). It is likely that Warner Bros will become a major shareholder in HYBE, & secure exclusive rights to content like BTS concerts & documentaries through HBO Max. Warner Bros is a subsidiary of AT&T's WarnerMedia. The WarnerMedia division also houses the streaming service HBO Max. cr.

Edited April 2, 2021 by satoori
words.

[satoori]

reddit comment: It sounds to me like they’re determined to change the whole industry in the West by merging the Korean trainee system with the American distribution channels. I have the feeling it’s just the first step. This all sounds so promising...

 

hmmmmmmmm.....

[satoori]

1 minute ago, LiterallyMadethistocomment said:

Gosh i hate scooter, after what he did with TS. Arrrrgggh I effin hate this

welp, at least hybe are the ones with the control...but you're not alone. i bet they knew many fans wouldn't lol which is why they announced hours ago about bighit becoming a new sub (operate independently from hybe)

https://www.soompi.com/article/1462178wpp/hybe-establishes-big-hit-music-as-new-subsidiary-company

 

 

 

[satoori]

OT: Weverse Magazine article supporting Taylor Swift ( @LiterallyMadethistocomment)

https://magazine.weverse.io/article/view;jsessionid=20529C5F4E9A0CA0D22B9580709CF7D6?lang=en&num=112

March 3, 2021 - Weverse talks about Taylor and her recordings, writes "Taylor’s Version is only just beginning, though...Swift will have opened a whole new dimension in the history of musicians’ rights."

[satoori]

4 minutes ago, LiterallyMadethistocomment said:

Thank you for this. I'm still trying to process everything right now

Now it makes sense why they reorganized the company structure before revealing this to the public. I've read one tweet saying this will have polarizing effect among fans and untapped markets - which I totally agree.

Hopefully this acquisition will give birth to promising artists. Still not forgiving SB though

 

no prob!

i agree

[satoori]

4 hours ago, Denisse said:

                                                                                                                          

 

 

 

 

 

 

yep, bighit (hybe) essentially bought them out

"To acquire Ithaca Holdings, HYBE's unit Big Hit America will pay 1.19T won ($1.05B), including cash payments to existing shareholders & creditors of IH. [...] HYBE will also issue shares worth 182B won to to Braun, Borchetta, Ariana, JB & others." https://www.reuters.com/article/hybe-ma-ithaca-idUSL4N2LV13C

i guess everyone have a price their life is worth..

but to think bts made bighit so much money and build a powerful brand to be able to even do such a thing... i - 

Edited April 2, 2021 by satoori