BTS's label HYBE takes over Scooter Braun's Ithaca Holdings
What's the story
Imagine BTS, Justin Bieber, Ariana Grande, and Demi Lovato - all under one roof!
That's what exactly is expected to happen now since their labels have merged.
Scooter Braun, who manages top pop artists such as Bieber, Grande, and Lovato, has sold his media firm, Ithaca Holdings, to South Korean company, HYBE Corporation.
Notably, HYBE is the label of popular K-pop band, BTS.
Deal
HYBE America will be paying $1.05 billion for the merger
Under the deal, HYBE's wholly-owned American subsidiary will fully take control over Ithaca, which also includes SB Projects and Big Machine Label Group.
HYBE America will be paying $1.05 billion for the merger.
Braun, who was the CEO of Ithaca, will join the board of HYBE. Scott Borchetta will remain the CEO of Big Machine Label Group as specified in an official press release.
Terms
New shares worth 182 billion won will be issued too
HYBE, previously known as Big Hit Entertainment, has mentioned in a regulatory filing that it will be issuing new shares worth 182 billion won to be allocated to Braun, Borchetta, Bieber, Grande, and others.
This amount is in addition to the $1.05 billion payment to complete the deal.
Artists of both the companies will participate in the capital increase of HYBE, the release added.
Details
Carlyle Group also to sell its minority stake in Ithaca
Also, Washington DC-based Carlyle Group is selling its minority stake in Ithaca Holdings in accordance with the deal.
HYBE Chairman and CEO Bang Si-Hyuk said the acquisition marks "the start of a new adventure no one could have possibly imagined."
Braun said the merger was an opportunity for them to "make history and further innovate the music industry and revolutionize the game itself."
Quote
'The two companies will work to create synergy, transcend borders'
"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 new paradigm the partnership will establish in the music industry," added Si-Hyuk.
Success story
Majority of HYBE's revenue still comes from BTS
Established in 2005, the Korean company recently changed its name, aiming to break its image from an artist management firm to "a more comprehensive lifestyle platform."
HYBE hit it big when the boyband BTS escalated to global popularity. To date, the majority of its revenue comes from the septet.
With the merger, it's expected to become one of the biggest music-focused entertainment firms worldwide.