Seoul/Hong Kong
Mahaz News
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HYBE, the administration company behind celebrity boy band BTS, will develop into the most important shareholder of its Okay-pop rival, SM Entertainment.
The transfer strengthens HYBE’s dominance in South Korea’s music business, the place it’s already the most important participant, even because it seeks to develop overseas.
The South Korean leisure giants introduced the deal Friday, with HYBE set to select up a 14.8% stake in SM Entertainment for 422.8 billion Korean received ($334.5 million).
SM was based by legendary music producer Lee Soo-man, who’s broadly referred to in South Korea as “the godfather of K-pop.” The firm is thought for representing hit artists, reminiscent of NCT 127, EXO, BoA and Girls’ Generation.
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News that the 2 corporations had been becoming a member of forces fired up buyers. SM Entertainment’s shares soared 16% in Seoul on Friday. HYBE’s inventory initially rose 3%, earlier than paring beneficial properties to shut down 1.5%.
Outside of BTS, HYBE additionally represents distinguished bands reminiscent of NewJeans, Tomorrow x Together and Seventeen.
But its marquee act is at present on hiatus. Members of BTS began particular person obligatory army service in South Korea late final 12 months, and the group as a complete is anticipated to reconvene round 2025.
Now, HYBE is popping its consideration elsewhere.
“This acquisition represents a major step by HYBE to integrate the global expertise of both companies to become a game changer in the global music industry,” the corporate stated in a press release.
HYBE has been taking steps to develop its international attain. On Thursday, it introduced one other main deal within the United States, saying it could purchase the proprietor of Quality Control, a hip-hop label that represents widespread artists together with Migos and Lil Yachty.
That deal will assist HYBE construct a stronger presence within the US music market, in line with Sunhwa Lee, an web and leisure analyst at KB Securities. In a report Thursday, she famous that the corporate’s broader ambitions had been “to go beyond the boundaries of K-pop and develop new global artists across various genres.”
“This partnership is a vital part of our growth plan to innovate the entertainment industry through a diversified portfolio,” HYBE Chairman Bang Si-Hyuk stated in a press release. “We will work together to continue adding depth of hip-hop to the global music industry.”
Bernie Cho, a Seoul-based music business govt, stated the 2 offers introduced had been not like something he’d seen.
This “may be the biggest one-two power punch I’ve ever seen or heard [of] in the history of the K-pop industry,” stated Cho, president of DFSB Kollective, a music artist and label providers company.
He stated the offers had the potential to place HYBE in the identical league because the “big three” main report labels: Sony
(SNE), Universal and Warner Music.
“HYBE, in their post-BTS stage, have really stunned and surprised fans and financial analysts by really smart, really savvy huge deals,” he added.
In 2019, BTS accounted for as a lot as 90% of income at its administration firm, then often called Big Hit Entertainment. That left analysts involved that the agency, later renamed to HYBE, was overreliant on the band.
Since then, nonetheless, HYBE has expanded its roster.
In latest years, its slate has grown to incorporate different international celebrities, together with Justin Bieber, Ariana Grande and Demi Lovato, who are represented by a workforce beneath HYBE’s US subsidiary.
The South Korean agency has additionally has a tie-up with Big Machine Label Group, an affiliate that oversees a few of the high artists in nation music, reminiscent of Sheryl Crowe, Rascal Flatts and Tim McGraw.
“HYBE is no longer a K-pop juggernaut. The K has now become silent,” stated Cho. “They’ve become a pop music juggernaut.”
Source web site: www.cnn.com
