SEOUL • The company behind Ok-pop phenomenon BTS introduced a US$1.05 billion (S$1.41 billion) deal final Friday 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 received (S$1.27 billion) 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 American 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 via its wholly owned subsidiary Hybe America, a 100 per cent stake in Ithaca Holdings”, it mentioned in a press release.
Mr Braun will be a part of the board of Hybe and artistes of each entities – together with BTS, Bieber and Grande – will take part within the capital enhance 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 earnings. 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 various belongings.
Rock stars comparable to Bob Dylan cashed in on their previous songs and so did Mr Braun with pop star Taylor Swift’s early albums.
Mr Braun hailed Hybe’s methods and mentioned the tie-up would create “exponential” alternatives for brand spanking new and present Ithaca artistes.
Hybe chairman and chief government Bang Si-hyuk known as the deal an “inevitable becoming a member of”.
Huge Hit helped popularise Ok-pop, with BTS’ Dynamite topping the Billboard Scorching 100 final 12 months. 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.
AGENCE FRANCE-PRESSE, BLOOMBERG