SEOUL (AFP, BLOOMBERG) – The company behind Ok-pop phenomenon BTS introduced a US$1.05 billion (S$1.41 billion) deal on Friday (April 2) to purchase the American agency that manages Justin Bieber, Ariana Grande and different main stars.
Hybe, previously often known as Huge Hit Leisure, is investing 1.07 trillion gained into its United States unit to amass Ithaca Holdings, headed by US media entrepreneur Scooter Braun. The acquisition of Ithaca could be the primary main foray into the US marketplace for Huge Hit Leisure.
In a separate regulatory submitting in Seoul, the corporate mentioned its US unit pays a complete of US$1.05 billion to bondholders and others for the merger.
The South Korean agency will “purchase by means of its wholly owned subsidiary Hybe America, a 100 per cent stake in Ithaca Holdings,” it mentioned in an announcement.
Mr Braun will be part of the board of Hybe and artistes of each entities – together with BTS, Bieber and Grande – will take part within the capital improve of the South Korean firm, it added.
The music trade has seen a flurry of offers amid the pandemic, which has prevented artistes from touring, their major supply of revenue.
In the meantime, the expansion of streaming companies has boosted the worth of music rights in recent times, buoyed additionally by low rates of interest and Wall Road’s curiosity in different belongings.
Rock stars like Bob Dylan cashed in on their previous songs, so did Mr Braun with pop star Taylor Swift’s early albums, although it created pressure between the music supervisor and the singer.
Mr Braun hailed Hybe’s programs and mentioned the tie-up would create “exponential” alternatives for brand spanking new and present Ithaca artistes. Hybe chairman and chief govt Bang Si-hyuk referred to as the deal an “inevitable becoming a member of”.
Huge Hit helped popularise Ok-pop, with BTS’ Dynamite topping the Billboard Sizzling 100 in 2020.
BTS have been the primary Asian act to be No. 1 on the US music chart since Japan-born crooner Kyu Sakamoto held the No. 1 spot for 3 weeks in 1963 with the tune Sukiyaki.