BTS's K-Pop agency HYBE buys Scooter Braun's Ithaca Holdings for $1 billion

Scooter Braun has sold his media company named Ithaca Holdings to BTS's KPOP Agency for $1 Billion. BTS's KPOP Agency, HYBE, formerly known as Big Hit Entertainment, is home to mega-selling bands. The agency has bought Scooter Braun's Firm that manages Justin Bieber, Ariana Grande and other major stars.

BTS's KPOP Agency has bought Scooter Braun's Firm 

The deal brings together many services including management, label services and publishing for a potent roster of artists. The list includes groups and artists such as BTS, TXT, SEVENTEEN, NU’EST, GFRIEND, ENHYPEN, ZICO, Justin Bieber, Ariana Grande, J Balvin, Demi Lovato, Thomas Rhett and Florida Georgia Line. BTS's KPOP Agency will take over full control of Ithaca and its properties which include SB Projects and Big Machine Label Group. HYBE has invested $950 million into the unit that paid $1 billion to bondholders and other investors to complete the deal.

Scooter Braun will be joining the board of HYBE and Scott Borchetta will remain CEO of Big Machine Label Group. According to the official deal announcement, artists from both companies will participate in the capital increase of HYBE. According to Deadline, Scooter had been in talks with a range of potential partners in February 2021. Possibilities were that Ithaca could have been taken over by former Disney exec Kevin Mayer and Blackstone.

Speaking of the deal, HYBE Chairman and CEO Bang Si-Hyuk said that the inevitable joining of HYBE and Ithaca Holdings would mark the start of a new adventure that no one could have possibly imagined. The two companies will work closely together leveraging their proven track records of success and expertise to create synergy, transcend borders and break down cultural barriers. He urged the audience to look forward to the endless possibilities of the merger and the new paradigm that the partnership will establish in the music industry.

Scooter Braun said that the deal marks “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.” He continued saying that the deal will help them to continue to further the careers of the artists they have already worked with. With this partnership, global opportunities for artists become exponential. It is an opportunity for them to make history and further innovate the music industry.

(Promo Image source: Big Hit Entertainment Instagram/ Shuttershock)