Add news
Нами Накагава — Kimi Wa Kirameki/Ты - Сияние! (feat. Ichigo Tanuki)
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021
News Every Day |

Justin Bieber, Ariana Grande & J Balvin to Reap Millions in HYBE Deal to Buy Ithaca Holdings

HYBE’s $1.05 billion deal to buy Scooter Braun’s Ithaca Holdings will award Braun’s artists and staff with more than $40 million in equity, including shares to Ariana Grande, Justin Bieber, J BalvinDemi Lovato and Quavo according to a corporate filing from HYBE, the publicly traded company formerly known as Big Hit Entertainment.

total of 39 people, including Braun and Big Machine Label Group CEO Scott Borchetta, will receive shares totaling about $186 million, based on the current exchange rate. Braun will get 462,380 ($99.4 million), while Borchetta will receive 166,537 ($35.8 million); and Grande and Bieber will each receive 53,557 shares, or $11.5 million each, the company filing states.

Balvin will get 21,423 shares ($4.6 million), Lovato will receive 5,355 shares ($1.2 million) and Quavo will receive 1,338 ($287,630). The remaining individuals listed are a mix of artists, executives and possibly existing Ithaca shareholders.

This isn’t the first time artists have received shares from HYBE. When the company went public last October on the Korean stock exchange, the seven members of BTS each got shares valued at $8 millionBut sources say the equity being awarded to Ithaca’s artists is coming out of Braun’s stake.

HYBE, the company behind powerhouse K-pop group BTS, said Friday (April 2) that it would pay $1.05 billion in cash and shares to acquire Ithaca Holdings, in a move designed to help the Korean company establish a strong U.S. presence in music and entertainment while also heightening its profile for American financial investors. According to terms of the deal, which is expected to close in about a month, Braun will join the board of HYBE and Borchetta will remain CEO of Big Machine Label Group.

The deal marries Big Hit Entertainment’s management company and labels with Ithaca’s entertainment holdings, which include the Big Machine label, the SB Projects management company and its interests in film and gaming through Mythos Studios and 100 Thieves Gaming. 

Since going public in October, HYBE has leveraged the global sway of BTS to do a series of acquisitions of smaller labels, joint ventures and strategic partnerships with South Korean and U.S. labels, including with Universal Music Group. The deals have brought the company steadily closer to the U.S. market and to founder and CEO Bang Si-Hyuk’s goal to build HYBE into an international entertainment conglomerate.

In February, HYBE and Universal announced the Korean company would create a joint label with Geffen Records and co-produce an American Idol-like show to search for the next global K-pop boy bandThe new label will be run out of Los Angeles, where HYBE plans to open a newly expanded U.S. office later this year.

For HYBE, Ithaca Holdings will relieve pressure on the company to diversify its artist roster beyond BTS, which pulled in 97% of the company’s sales in 2019, especially with required military service for the group’s oldest members still looming in two to three years.

The Ithaca Holdings deal was announced after the Korea Stock Exchange close of trading Friday, in which HYBE’s shares — which still trade under Big Hit Entertainment – closed at 243,000 KRW ($214.97) per share, giving the company a market capitalization of 8.5 trillion KRW ($7.27 billion), down slightly from the 8.7 trillion KRW valuation in its first day of trading on Oct. 15.

Besides paying with Big Hit shares, HYBE is using at least $120 million in debt to finance the deal, according to a HYBE filing. The stock shares likely come with a lock-up period, which means the recipients can’t trade them until a certain specified date.

Financial music executives said they were stunned by the Ithaca valuation, especially after Braun and Ithaca’s financial backer, the Carlyle Group, sold the crown jewel of the Big Machine labels — Taylor Swift’s catalog — to Shamrock Holdings for an estimated $300 million last November. That was 16 months after they bought Big Machine.

In the Big Machine acquisition, sources say Ithaca acquired 80% of the company in a deal that gave Big Machine about a $380 million valuation, leaving Borchetta and possibly some of his investors with a 20% stake that was apparently converted into shares of Ithaca.

Besides the Swift catalog, the Big Machine labels also will bring HYBE music from Florida Georgia Line, Carly Pearce, Lady A, Jennifer Nettles, Rascal FlattsSugarland, Sheryl Crow, Thomas Rhett, Tim McGraw, Brantley Gilbert and the Eli Young Band.

Previously, Billboard estimated that Big Machine averaged about $100 million in revenue over the period of 2015-18, with almost $40 million in earnings before interest, taxes, depreciation and amortization. But since the Swift catalog generated so much of the revenue, she also was responsible for an outsized profit-margin contribution — almost three-quarters of overall EBITDA, Billboard calculated.

Since Borchetta sold Big Machine to Ithaca, prices for music assets have escalated considerably, with Universal Music Group achieving a 30 times EBITDA multiple from its deal with Tencent Music Entertainment. UMG is expecting an even higher multiple from its planned stock offering later this year.

Considering those multiples, Billboard projected that at the top end that could mean a $950 million valuation for just Big Machine alone. But that was before Ithaca sold Swift’s catalog to Shamrock Holdings for about $300 million. Without the Swift catalogBig Machine is worth half as much — anywhere from $300 million to $650 million. That means the rest of Ithaca’s holdings in technology, film and gaming have contributed a significant portion of Ithaca’s valuation.

Regardless, the Carlyle Group may emerge as the biggest winner in the deal. Ithaca Holdings and HYBE said Friday that Carlyle will sell its significant minority stake in Ithaca, after initially investing in the company in 2017.

Even before the Swift catalog was sold off, sources suggest Carlyle was the sole beneficiary of the $300 million that Shamrock paid for the Swift catalog.

With Big Machine and SB Holdings, HYBE will significantly enhance its U.S. holdings. And the combined management and label rosters of Bieber, BTS and Grande will give HYBE more firepower in the entertainment lifestyle marketplace.

The deal could also mean that HYBE is inheriting a potential Swift headache. The pop star expressed her displeasure last year upon learning that Braun owned her catalog through the Big Machine acquisition. She said she had wanted, but was never offered, a chance to buy back her catalog. She subsequently denounced the deal and all those involved in it. She continues to own her own publishing. 

Read also

AzerTurkBank has reduced its loan portfolio by 2.9% since the beginning of the year

Love Island’s Malin Andersson strips off for sexy lingerie snaps after dumping love rat who had a secret girlfriend

Major surge in Cheltenham Festival and Grand National 2022 ticket sales with some enclosures ALREADY almost sold out

News, articles, comments, with a minute-by-minute update, now on — latest news 24/7. You can add your news instantly now — here
News Every Day

Cooking Whole Wild Turkey on Pellet Grill JUICY MEAT!