Global Artists Including Ariana Grande and Justin Bieber to Become Big Hit Shareholders

Acquisition of 100% Stake in Ithaca Holdings by Top Producer Scooter Braun
Key Executives and Affiliated Artists of Ithaca Holdings Participate in HYBE's Paid Capital Increase

[Asia Economy Reporter Hyungsoo Park] HYBE (formerly Big Hit) announced on the 2nd that its subsidiary Big Hit America will acquire 100% of the shares of Ithaca Holdings.

Ithaca Holdings operates in various fields including music, IT, film, and culture. It is acquiring various business divisions such as the SB Project (Scooter Braun Project), led by Ithaca Holdings founder Scooter Braun, and Big Machine Label Group.

Scooter Braun will join the HYBE board of directors, and Scott Borchetta will remain as CEO of Big Machine Label Group. Key executives and affiliated artists of Ithaca Holdings will participate in HYBE's third-party allotment paid-in capital increase worth 181.8 billion KRW. Not only Scooter Braun and Scott Borchetta but also Justin Bieber, Ariana Grande, J Balvin, and others will participate as HYBE shareholders.

HYBE Chairman Bang Si-hyuk said, "This new partnership with Ithaca Holdings is a challenge no one could have imagined," adding, "The two companies will create high-level synergy through close collaboration beyond borders and cultural boundaries based on the achievements, know-how, and expertise accumulated so far." He continued, "Please watch the infinite possibilities of HYBE and Ithaca Holdings, which will open a new paradigm in the music industry on a different level than before."

HYBE has shown long-standing interest in Ithaca Holdings, a pioneer in the music industry focusing on artist branding. Subsequently, Ithaca Holdings responded, rapidly forming a consensus for cooperation between the two companies.

Scooter Braun, CEO of Ithaca Holdings, emphasized, "This partnership marks the starting point where HYBE's innovative system and curation capabilities are applied to artists' career beginnings in the United States." He explained, "It will not only greatly help the career development of existing artists but also assist many artists in gaining various opportunities in the global market."

He also stated, "We will all innovate the music industry, make history, and record a monumental outcome that changes the landscape of the industry." He added his sincere thanks to Chairman Bang Si-hyuk for "supporting and fully backing artists' creative activities."

Allison Kaye, partner at Ithaca Holdings, said, "Over the long 15 years, I have built the best team with Scooter Braun and contributed to the company's leap to become the industry's top entertainment company," adding, "As the company and artists grow in various fields such as entertainment, IT, commerce, and content, I am pleased that this partnership provides an opportunity to expand into the global market."

Through the partnership, HYBE and Ithaca Holdings will jointly handle album production and management activities for various global artists including BTS, Tomorrow X Together, Seventeen, NU'EST, GFriend, Zico, ENHYPEN, Justin Bieber, Ariana Grande, J Balvin, Demi Lovato, Thomas Rhett, Florida Georgia Line, and Lady A. By establishing a global top-tier multi-label system, the two companies have laid the foundation for targeting the global market.

Ithaca Holdings plans to accelerate the entry of HYBE's domestic artists into the U.S. market and strengthen competitiveness in the global market based on its market and industry expertise in the United States.

Meanwhile, Carlyle Group, a U.S.-based private equity firm that made an initial investment in Ithaca Holdings through the Carlyle Partners VI fund in 2017, plans to sell a significant minority stake in Ithaca Holdings simultaneously with this contract.

This content was produced with the assistance of AI translation services.