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After months of speculation, Scooter Braun sold its media company, Ithaca Holdings, to South Korea’s HYBE.
Formerly known as Big Hit Entertainment, HYBE is home to K-pop groups like the mega-sale BTS. The deal brings together a range of services including management, label services and publishing for a roster of powerful artists. The list includes BTS, TXT, SEVENTEEN, NU’EST, GFRIEND, ENHYPEN, ZICO, Justin Bieber, Ariana Grande, J
Balvin, Demi Lovato, Thomas Rhett and Florida Georgia Line.
As part of this agreement, the HYBE subsidiary, HYBE America, takes full control of Ithaca and its properties which include SB Projects and Big Machine Label Group. HYBE will invest $ 950 million in its U.S. unit, which will then pay just north of $ 1 billion to bondholders and other investors to complete the transaction, in accordance with a regulatory filing. The Carlyle Group is also selling its minority stake in Ithaca Holdings, which dates back to 2017.
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Braun will join the HYBE Board of Directors and Scott Borchetta will remain CEO of Big Machine Label Group. Artists from both companies will participate in the HYBE capital increase, according to the official announcement of the agreement.
Deadline reported in February that Braun had been in talks with a range of potential partners. One storyline would have seen former Disney director Kevin Mayer and Blackstone land in Ithaca.
“The inevitable combination of HYBE and Ithaca Holdings marks the start of a new adventure that no one could have imagined,” said HYBE CEO Bang Si-Hyuk. “The two companies will work closely together, leveraging our proven track record 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, as well as the new paradigm the partnership will establish in the music industry.
Braun said the deal marked “the first time that HYBE’s revolutionary systems and curation will be integrated into the US market early in an artist’s career.” He continued, “It will help us continue to advance the careers of the artists we already work with. Global opportunities for artists are becoming exponential with this partnership. This is an opportunity for us to make history and further innovate the music industry and revolutionize the
the game itself. “
As Big Machine artists explore more global opportunities through the deal, the companies hope to build on recent breakthroughs in the United States by K-pop artists. BTS performed on Saturday Night Live in 2019 and then at the MTV Video Music Awards last fall. His English-language single, “Dynamite,” rose to No. 1 on the Billboard Hot 100 charts in the United States.
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