This integration will now revolutionize the music industry!!
According to the media outlet released on Friday by HYPE formerly known as officially made an announcement that they are going to get merge Scooter Braun’s Ithaca Holdings.
In a press release, HYBE’s chairman and CEO Bang Si Hyuk stated, “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.”
“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.” He adds
Big Hit Music the company which currently manages BTS and TXT and HYBE’s subsidiaries includes:
- Source Music (which manages GFRIEND),
- Pledis Entertainment (which manages SEVENTEEN and NU’EST)
- BELIFT Lab (which manages ENHYPEN in conjunction with CJ E&M)
- KOZ Entertainment (founded by Zico)
According to the news outlets HYBE has taken over all shares of Big Hit America worth 1.7 trillion won ($1.5 billion) and later Big Hit America has merged with Ithaca Holdings through its subsidiary BH Odyssey Merger after which Big Hit Odyssey has been dissolved leaving Ithaca as a sole subsidiary of HYBE America.
HYBE America has become the 100% owner of Ithaca Holdings by purchasing Ithaca’s majority shares to control the company. It includes Braun’s management company, SB Projects, that management clients like Justin Bieber, Ariana Grande, Demi Lovato, and Big Machine Label Group, a 2019 controversial purchase that led to Taylor Swift rerecording her first five albums.
In 2019, Ithaca Holdings acquired Big Machine Label Group for a figure believed to be in the region of $330 million. The following year, Ithaca/Big Machine sold the recorded music rights to Taylor Swift’s first six albums to another financial player, Shamrock Capital, for around $300 million.
In 2019, it also owned Ithaca owns companies such as Atlas Music Publishing, plus Raised In Space Enterprises founded by Zach Katz and Shara Senderoff.
In order to acquire Ithaca Holdings HYBE America will pay ₩1.19 trillion KRW (about $1.05 billion USD) to Ithaca Holdings’ existing shareholders and creditors. In another filing, HYBE stated that around 860,000 shares worth ₩182 billion KRW (about $161 million USD) will be issued to Scooter Braun, Ariana Grande, Justin Bieber, and over 30 more people.
Scooter Braun will receive 462,380 shares, while Ariana Grande and Justin Bieber will receive 53,557 shares each. When Big Hit Entertainment’s IPO first launched, each BTS member has gifted 68,385 shares each.
Scott Borchetta, the CEO of Big Machine Label Group, will also receive 166,537 shares, with the remaining shares split between artists like Carly Rae Jepsen, Demi Lovato, and others.
According to deal Braun will join the board of HYBE and Scott Borchetta will remain CEO of Big Machine Label Group.
Following this decision, Scott Borchetta stated, “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… 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.”
This great deal will now bring together a range of management, label services, and publishing for global artists like 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.
Allison Kaye, a partner at Ithaca Holdings added saying, “We are ecstatic 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.”
This partnership will become potential for all K-pop as well as international pop artists to showcase their performance under one roof irrespective of their culture or nationality. We will get to see more artists from international origin who will get equal representation and will make collaboration easier!!
For a clearer look at HYBE’s new structure, here’s a handy infographic.