[MHN Roh Pooleun] Hybe, the K-pop powerhouse of BTS, Seventeen, and G-FRIEND, formerly known as Big Hit Entertainment, announced they're buying Scooter Braun's Ithaca Holdings-media group of Justin Bieber and Ariana Grande to name a few.
In a new promotional video from Hybe and Ithaca Holdings, the two companies voiced anticipation over the deal, with Hybe founder and chairman Bang Si Hyuk calling it "the start of a new adventure no one could have possibly imagined".
BTS' RM expressed excitement over "so many artists that we cherish and love" joining their family. BTS' Suga and J-Hope showed appreciation for the "endless opportunities" and "sharing positive influence with all the artists" and "giving fans around the world a fresh experience and be a source of new joy."
"The prospects of working together with these amazing teams and stepping further into the global music scene is very exciting," Bieber said in the video. "I'm thrilled at the potential this alliance holds. ... Let's make history together."
Analysts based in Seoul said the latest acquisition will give a major boost to Hybe's seemingly endless expansion, with its legion of artists giving the company substantial bargaining power in the competitive entertainment industry.
In terms of YouTube subscribers, it will bring together No.1 Justin Bieber, No.3 BTS and No.4 Ariana Grande. BLACKPINK is expected to join (Hybe's fan community platform) Weverse, and with partnerships with other labels, this makes fan base of 220 million.
Through the amalgamation Hybe will expand its fandom and diversify its portfolio of artists. It is expected to drop its revenue figure accounted for BTS from 85 percent in 2020, which was 97 percent in 2019. If the incoming artists join Hybe's fan community platform Weverse which also sells merchandise, the sales could increase.
In 2020, sales coming from Weverse accounted for 41 percent of revenue and it is projected to grow bigger this year, since K-pop fans usually spend more on fan merchandise compared to other music fans.
HYBE & Ithaca Holdings Set to Sign Billion-Dollar Deal