Scooter Braun has sold all of its Ithaca Holdings – including SB Projects and Big Machine Label Group – to HYBE in South Korea, formerly known as Big Hit Entertainment.
The HYBE subsidiary HYBE America has acquired a 100% stake in Ithaca, which was previously supported by capital from the investment giant Carlyle Group. As a result, Carlyle leaves his position in the acquired company.
Following the deal, Braun will join HYBE’s board of directors, while Scott Borchetta will remain CEO of the Big Machine Label Group.
TO UPDATE: A government filing in Korea shows that HYBE has agreed to pay shareholders and bondholders a total of $ 1.05 billion for the purchase of Ithaca.
In a media release, HYBE said: “With Ithaca Holdings, HYBE is taking an important step towards expanding into the global market and establishing a global top tier multi-label structure. Ithaca Holdings’ market and industry expertise will accelerate the entry of HYBE artists into the US market and beyond, and cement HYBE’s competitiveness in the global market. “
It confirmed: “[This] Deal brings together a range of services including management, label services and publishing for global artists 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. “
Braun’s management company, SB Projects, represents talents like Justin Bieber, Ariana Grande, J. Balvin and Demi Lovato.
Ithaca Holdings acquired the Big Machine Label Group for an estimated $ 330 million in 2019. The following year, Ithaca / Big Machine sold the rights to recorded music to Taylor Swift’s first six albums to another financial player, Shamrock Capital, for around $ 300 million.
In addition to Big Machine, Ithaca owns companies like Atlas Music Publishing, which it acquired in 2019, and Raised In Space – the music launches accelerator led by Zach Katz and Shara Senderoff.
Bang Si-Hyuk, Chairman and CEO of HYBE, announced today (April 2nd) the acquisition of Ithaca by HYBE, stating, “The inevitable combination of HYBE and Ithaca Holdings marks the beginning of a new adventure no one could have imagined .
“The two companies will work closely together and use our proven successes, our know-how and our know-how to create synergies, cross borders and break down cultural barriers. Please look forward to the infinite possibilities of HYBE and Ithaca Holdings and to the new paradigm that the partnership will establish in the music industry. “
“The inevitable combination of HYBE and Ithaca Holdings marks the beginning of a new adventure that no one could have imagined.”
Bang Si-Hyuk, HYBE
Braun added, “This is the first time HYBE’s breakthrough systems and curation have been integrated into the US market early in an artist’s career. It will also help us advance the careers of the artists we already work with.
“Global opportunities for artists become exponential through this partnership. This is an opportunity for us to make history, continue to innovate the music industry, and revolutionize the game itself. The business impact will be enormous for a long time to come. I am incredibly grateful for Chairman Bang’s friendship and willingness to support an artist’s creative journey. “
“This is the first time HYBE’s breakthrough systems and curation have been incorporated into the US market early in an artist’s career.”
Allison Kaye, Partner at Ithaca Holdings, said, “I have worked with Scooter for 15 years helping them build a world class entertainment company and a phenomenal team that we are both extremely proud of.
“We have launched amazing careers and brands and brought incredible content to the world. We are excited to work with Chairman Bang and HYBE to advance the global reach of both businesses and artists as we continue to grow our company and their careers in entertainment, technology, commerce and content. “
HYBE announced the official name change for Big Hit Entertainment last month.
The company recently announced a partnership with the Universal Music Group, in which HYBE and UMG will jointly launch a label in the USA.
HYBE (then Big Hit) was listed on the Korean Stock Exchange last year.Music business worldwide