BTS- The Korean company that launched the K-pop sensation BTS is paying$ 1.05 billion for a global media group behind the careers of Canadian stars Justin Bieber and Ariana Grande.
Big Hit Entertainment is acquiring Ithaca Holdings LLC from its name HYBE, which is changing its name to HYBE, with 1.07 trillion won invested in its U.S. unit to acquire HYBE, led by music impresario Scooter Braun. Big Hit will buy a total of$ 1.05 billion to shareholders and bondholders to buy Ithaca, according to a Friday regulation filing in Seoul.
The acquisition of Ithaca would be the first major venture into the U.S. market for Big Hit Entertainment. The Braun, currently The Ithaca CEO and HYBE's Chief Executive, will join the board of Braun, the companies said in a statement. As part of the transaction, Carlyle Group will sell its substantial minority stake in Ithaca, which it has held since 2017.
The music industry has seen a flurry of deals amid the pandemic, which has prevented artists from touring, their primary source of income. The growth of streaming services has boosted the value of music rights in recent years, also buoyed by low interest rates and Wall Street's interest in alternative assets. Rock stars like Taylor Swift plugged into their early songs, as did Bob Dylan with their previous albums, though it created tension between the music manager and the singer.
Braun hailed HYBE's systems and said that the tie-up would create new and existing opportunities for exponential artists of Ithaca. Bang Si-Hyuk, Chairman and CEO of HYBE, called the deal an inevitable joining.
Big Hit helped popularize K-pop, with BTS Dynamite topping the Billboard Hot 100 in 2020. BTS was the first Asian act to be No. 1 on the U.S. music chart since Kyu Sakamoto held the No. For more articles like this, please visit bloomberg.com at 3 weeks in 1963.
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