The merger of the BTS label HYBE (nee Big Hit Entertainment) and Scooter Braun’s Ithaca Holdings will make Braun’s customer list for SB Projects – including Justin Bieber, Ariana Grande, J. Balvin and Demi Lovato – major shareholders of a capital one The increase is intended to strengthen the bond between the two companies, according to a Korean approval file.
A total of 863,209 new shares were issued at a price of USD 186 per share – a commitment of USD 50 million, from the purchase price of which Braun divided the actors and employees who have worked for it since it was founded in 2007. Of those shares, 462,380 were allotted to Braun himself, and 166,537 were allotted to Scott Borchetta, CEO of Big Machine Label Group, which Ithaca acquired in 2018. Justin Bieber and Ariana Grande received 53,557 shares – around $ 10 million each – while J Balvin received 21,423 shares. Demi Lovato were assigned 5,355. Smaller pieces of the cake were distributed to other artists on the label’s list, such as Carly Rae Jepsen and Asher Roth, who received 535 shares each, as well as producer Andrew Watt, Migos rapper Quavo, producer Tommy Brown and songwriter Jason “Poo Bear” Boyd and the members of the Florida Georgia Line among others.
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Braun business partner and SBP President Allison Kaye received an impressive 26,778 shares – good for 5 million US dollars – and Jen McDaniels, general manager of SBP, 10,711 shares. Other long-term employees also received varying degrees, including Scott Manson, James Shin, Jules Feree, and Shauna Nep.
“Scooter Braun, the largest shareholder in Ithaca Holdings, LLC, and Scott Borchetta, the major shareholder, share 25% of the trading proceeds, while great artists, executives and employees (39) such as Justin Bieber and Ariana Grande receive their bonus shares”, it says in a separate registration to the business. “We plan to participate in the paid-in capital increase that was allocated to HYBE for 100% of HYBE deposits (one-year protective deposit) and we expect to be more active as a shareholder in the future.”
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The cash and stocks mega-deal, a marriage of major entertainment labels, is believed to be worth more than $ 1 billion. As part of the deal, Braun will become a member of the HYBE Executive Board and Borchetta will continue to be CEO of Big Machine.
The agreement encompasses a range of services including management, labeling and publishing for a range of musicians including BTS, Demi Lovato, Florida Georgia Line and others. In addition, the wisdom of the business brings together the strengths of the two companies on opposite sides of the world.
Sources familiar with the deal note that while Braun has reportedly had conversations with former Disney executives like Tom Staggs and Kevin Mayer, who are raising money for their own SPAC, he chose to go in the Staying in the entertainment industry rather than joining a private public company. In retrospect, the ex-Disney couple’s $ 350 million pale in comparison to the $ 1 billion deal signed by HYBE that technically took over Ithaca and bought out the Carlyle Group’s minority stake.
HYBE, formerly Big Hit Entertainment, went public in October 2020 with a $ 820 million offer, the largest in South Korea in three years. Despite the initial hype, its stock has risen dramatically since then. After rising in the trading debut, stocks fell in the final months of 2020 before staging a spectacular rally from late January 2021 and reaching a new high in mid-February.
Pictured (from left): J. Balvin, Ariana Grande, Justin Bieber
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