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It has been spreading that HYBE (Big Hit Entertainment’s new official name) will be merging with Scooter Braun’s investment company, Ithaca Holdings. As music fans, here’s everything we need to know the impact on BTS and TXT to Justin Bieber and Ariana Grande’s shares in HYBE.
Get to know to HYBE and Ithaca Holdings?
What is HYBE?
First thing first, we all need to understand what HYBE is. The founder and chairman of Big Hit Entertainment, Bang Si Hyuk, decided to change the company name to HYBE Corporation. According to reports on March 10, Bang Si Hyuk stated, “We’ll become the world’s leading entertainment and lifestyle platform company. By removing ‘entertainment,’ we’ll have a new, comprehensive image as a general content group, which is our mission.”
To manage the company, HYBE has been divided into at least four businesses: HYBE Labels, HYBE Solutions, HYBE Platforms, and HYBE America.
HYBE Labels
In HYBE Labels itself, it has multiple affiliates, including:
- Big Hit Music (manages BTS and TXT)
- Source Music (manages GFRIEND – disbandment update)
- Pledis Entertainment (manages SEVENTEEN and NU’EST, fromis_9 joined in August 2021)
- BELIFT Lab (manages ENHYPEN, in conjunction with CJ E&M)
- KOZ Entertainment (founded by Zico)
HYBE Solutions
Focusing on intellectual property, education, and more, HYBE Solutions include:
- HYBE 360 (formerly known as Big Hit Three Sixty Co., Ltd.)
- HYBE IP
- HYBE Edu (formerly known as beORIGIN Co., Ltd.)
- Superb
- HYBE Solutions Japan
- HYBE T&D Japan (Formerly known as TNDJ)
HYBE Platforms
The division focuses on the technology which manages the social networking and platform, including Weverse.
HYBE America
Previously known as Big Hit America, this was a preparation for a merger with Scooter Braun’s investment company, Ithaca Holdings. Although said to be merging, as for now, Ithaca Holdings is expected to become one of the subsidiaries of HYBE. The merger then will dissolve Big Hit Odyssey.
Who are under Ithaca Holdings?
Well, this is quite complex as artists in the United States have a separate management company and music labels (which is different from Kpop). To make it simple, SB Projects, the subsidiary of Ithaca Holdings, manages Ariana Grande, signed to Republic Records. Another artist under SB Projects, Justin Bieber, is signed to Def Jam Recordings.
What will happen to the artists’ shares?
Ithaca Holdings shares
HYBE America will pay KR₩ 1.19 trillion (around US$ 1.05 billion) to Ithaca Holdings’ existing shareholders and creditors. HYBE stated that around 860,000 shares worth KR₩ 182 billion (around US$ 161 million) would be issued to Scooter Braun (462,380 shares), Ariana Grande (53,557 shares), Justin Bieber (53,557 shares), and over 30 more people.
The CEO of Big Machine Label Group, Scott Borchetta, will also get 166,537 shares. The remaining shares split between the other artists, like Carly Rae Jepsen, Demi Lovato, and more.
BTS shares
At the first launch of Big Hit Entertainment’s IPO, the company gifted each BTS member with 68,385 shares. With that, we know that BTS is as one of the richest Kpop groups. Nevertheless, it is still unknown how many more shares the members may have bought since then.
[#오늘의방탄] 100분 꽉꽉 채운 Let’s BTS! 내 주변 동년배 모두 비티엣스 한다.. 🌝 #LetsBTS #방탄소년단 #7방탄완전소중 #인터내셔널팝케이센세이션_중략_핫백1위그래미노미네이트퍼포머BTS pic.twitter.com/shQfsePogi
— BTS_official (@bts_bighit) March 29, 2021
For you to have a clearer image, here is HYBE’s new structure.
HYBE America is separate from Korean agencies
This is important to note that Big Hit America is separate from all Korean agencies, like Big Hit Music, Source Music, Pledis Entertainment, BELIFT Lab, KOZ Entertainment, and HYBE Labels Japan. Therefore, Ithaca Holdings won’t directly influence the creative freedom of BTS, TXT, GFRIEND, and other Kpop stars.
In the case of a merger, Scooter Braun has the right to join HYBE’s board of directors, responsible for appointing (and firing) senior executives, helping set broad goals, signing off on major corporate decisions, and ensuring resources among other roles.
By the way, have you seen the new HYBE intro?
Here it is…
More to read about Kpop:
- Enjoy These 6 BTS Solo Project Songs on Soundcloud
- March 2021 Most Popular Korean Singer Brand Reputation Rankings
- Kpop Stars TXT Yeonjun, WayV YangYang & Bibi on NYFW 2021 Runaway
- 5 Facts about Epik High Comeback Features Zico, CL, B.I, & more!
- Spotify vs. Kakao M: Kpop Songs are Removed, Frustrated Kpop Stars & Fans
Big Hit grows up so well 🥺 I wish they continue their success story in the future.