(CelebrityAccess) — South Korean entertainment company HYBE, formerly known as Big Hit Entertainment announced plans to acquire of Scott “Scooter” Braun’s entertainment firm Ithaca Holdings.
The deal will see HYBE’s wholly owned subsidiary HYBE America pay $1.05 billion to shareholders and creditors to acquire a 100% stake in U.S.-based entertainment company, including its properties such as SB Projects and Big Machine Label Group. according to regulatory filings.
HYBE, formerly known as Big Hit Entertainment, is the South Korean entertainment conglomerate behind the phenomenally successful K-pop group BTS.
Following the completion of the deal, which the company says it expects to close in May, Braun, who currently serves as Ithaca’s chief executive officer, will join HYBE’s board of directors and Scott Borchetta will remain CEO of Big Machine Label Group
Following the transaction, Ithaca Holdings will become a wholly owned subsidiary of HYBE, including its sub-holdings such as SB Projects and Big Machine Records. Ithaca’s management clients include high profile performers such as Justin Bieber, J Balvin and Ariana Grande.
The acquisition will also provide HYBE with a “stepping-stone” into the U.S. market and will further the brand’s global reach, the company said.
“The inevitable joining of HYBE and Ithaca Holdings marks the start of a new adventure no one could have possibly imagined. The two companies will work closely together leveraging our proven track records of success, know-how, and expertise to create synergy, transcend borders and break down cultural barriers. Please look forward to the endless possibilities of HYBE and Ithaca Holdings, and the new paradigm the partnership will establish in the music industry,” said HYBE Chairman & CEO Bang Si-Hyuk.
“This will be the first time HYBE’s groundbreaking systems and curation will be integrated in the U.S. market at the onset of an artist’s career. Plus, it will help us to continue to further the careers of the artists we already work with. Global opportunities for artists become exponential with this partnership. This is an opportunity for us to make history and further innovate the music industry and revolutionize the game itself. Its implications for the business will be momentous for a long time to come. I am incredibly grateful for Chairman Bang’s friendship and his willingness to support the creative journey of an artist,” added Braun.
As part of the transaction, The Carlyle Group will sell its significant minority stake in Ithaca Holdings, after initially investing in the company in 2017 by way of its Carlyle Partners VI fund.