Bang Si-hyuk, Chairman of HYBE, "I will open a new paradigm in the music industry"

Hive x Ithaca Holdings video capture. (Photo by Hive)

[Asia Economy Reporter Donghyun Choi] HYBE, which acquired Ithaca Holdings, a subsidiary that manages SB Projects, the management company representing major American pop stars such as Justin Bieber and Ariana Grande, has released a video celebrating the partnership between the two companies.

On the 6th, HYBE released a video on its official YouTube channel featuring congratulatory messages from HYBE and Ithaca Holdings executives, as well as key affiliated artists including BTS and Justin Bieber.

Bang Si-hyuk, Chairman of the HYBE Board, said, “The merger of HYBE and Ithaca Holdings is a new challenge that no one could have imagined,” adding, “Based on the achievements, know-how, and expertise accumulated by both companies so far, we will demonstrate high-level synergy through close cooperation and break down the borders of nations and cultures to open a new paradigm in the music industry.”

Scooter Braun, CEO of Ithaca Holdings, stated, “I truly believe the possibilities that this partnership will open are limitless,” and congratulated, “With this partnership, HYBE and Ithaca Holdings will make history and succeed in innovating the music industry, leaving monumental results for a long time to come.”

Artists affiliated with both companies also expressed high expectations for the synergy and opportunities this partnership will bring.

BTS said, “We are very happy that artists we really like and enjoy listening to are coming together as one family,” and added, “We hope this new attempt will lead to unique experiences, emotions, and joy for our fans.” Seventeen also commented, “We hope this will be an opportunity to get closer to fans worldwide by joining hands with global top artists.”

Justin Bieber, a leading American pop artist under Ithaca Holdings, said, “I am very excited to collaborate with such an amazing team and expand into the global music market.” J Balvin and Demi Lovato also left congratulatory messages on the merger, saying, “Blessings,” and “Congratulations on becoming one family.”

On the 2nd, HYBE announced that its subsidiary Big Hit America would acquire 100% of the shares of Ithaca Holdings, which operates businesses in various fields including music, IT, film, and culture. The acquisition amount is $1.05 billion (approximately 1.186 trillion KRW), marking the largest scale in the history of mergers and acquisitions (M&A) by a domestic entertainment company and the first case of a Korean company acquiring an overseas label.

The merger of the two companies is also regarded as a shocking event in terms of the combination of global top artists. Among the top 10 global record music revenue artists announced by the International Federation of the Phonographic Industry (IFPI) last year, three groups (1st place BTS, 8th place Ariana Grande, and 10th place Justin Bieber) belong to HYBE and Ithaca Holdings.

Additionally, the combination of Justin Bieber, who has the highest number of YouTube subscribers worldwide at 62 million, and BTS and Ariana Grande, each with about 50 million YouTube subscribers, is expected to be a powerful force in the global music market trend where the influence of social channels and video content is growing.

HYBE expects that the merger with Ithaca Holdings will accelerate the entry of HYBE-affiliated domestic artists into the U.S. market. Ithaca Holdings’ solid network within the U.S. market and expertise in the market and industry are expected to provide momentum for HYBE to rapidly expand its market share in the U.S.

Furthermore, with the addition of global artists such as Justin Bieber, Ariana Grande, J Balvin, and Demi Lovato, HYBE plans to establish a global top-tier multi-label system covering genres from K-pop to Latin and country, expanding its business scope in the global market by utilizing the intellectual property (IP) of top artists across various genres.

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