This is not the first time The artist has received a share from Heby. When the company Listed on the Korean Stock Exchange in October last year, Seven members of BTS Each Acquired $8 million worth of stock. But the source said that the equity was granteded to Ithacaof artist Stand out from Braun̵
HYBE, the company behind the powerful K-pop group BTS, said on Friday (April 2) that it will Pay $1.05 billion in cash and stock to acquire Ithaca Holdings, On the move Designed to help Korean company Established a strong American influence in the music and entertainment fields, and at the same time improved its image among American financial investors. According to the terms The transaction is expected to be completed in about a month,Braun will join Heby Borchetta will continue to serve as CEO of Big Machine Label Group.
This deal is married to Big Hit entertainmentof Management company and label with Ithaca Entertainment Holdings, These include the Big Machine label, SB Projects management company, and interest in movies and games through Mythos Studios and 100 Thieves Gaming.
Since its listing in October, HYBE has taken full advantage of BTS’s global influence and has carried out a series of smaller record company acquisitions, joint ventures and strategic partnerships with Korean and American record companies (including Universal Music). These transactions brought the company steadily closer to the US market and the founder and CEO. BunsichHYBE has become the goal of an international entertainment group.
In February, HYBE and Universal announced that the Korean company will create Joint label and co-production with Geffen Records American idolSimilar shows to find the next global K-pop boy band. The new brand will operate outside of Los Angeles, and HYBE plans to open a new brand in Los Angeles we Office later this year.
For HYBE, Ithaca Holdings will reduce the pressure on the company to diversify its artist lineup and surpass BTS, which will drive 97% of the company’s sales in 2019, especially the military service needs of the oldest members of the group are still looming within two to three years .
This Ithaca Holdings Announced trading after the Korean Stock Exchange closed Friday,among them HYBE’s shares -Still trading Popular entertainment- shut down 243,000 won (US$214.97) per share, bringing the company’s market value to 8.5 trillion won (US$7.27 billion), a slight drop from the 8.7 trillion won valuation on the first day of listing on October 15.
In addition to paying with Big hit Stocks, HYBE is using at least $120 million in debt To financialE transaction, According to the documents submitted by HYBE. Stocks may have a lock-up period, which means that the receiver cannot trade until a specific specified date.
Financial music executives Say they are Ithaca’s valuation is shocking, especially Rear Braun and Financial supporter in Ithaca Carlisle group, Sold the crown jewel of the Big Machine label -Taylor Swift table of Contents – Acquired Shamrock Holdings Company for US$300 million Last November.That is 16 months later They bought Big machine.
inside Big machine obtain, The source said, Ithaca acquired 80% of the shares the company In transaction Big machine With a valuation of approximately $380 million, Borchetta and some of his investors may own 20% of the shares, which have apparently been converted into shares in Ithaca.
In addition to the Swift catalog, the Big Machine label also will bring Heby Music from Georgia State Line, Florida, Carly Pierce, Mrs. A, Jennifer Nettle, Rascal Flatts, Sugar Land, Sheryl Crow, Thomas Rhett, Tim McGraw, Brantley Gilbert and Eli Young.
prior to, billboard It is estimated that Big Machine’s average revenue during the 2015-18 period is about 100 million U.S. dollars, and the income before interest, taxes, depreciation and amortization is about 40 million U.S. dollars.But because the Swift catalog generates a lot of income, she is also responsible for the excess profit–Margin contribution – Almost three-quarters of EBITDA, billboard computational.
smallInc Borchetta sells Big Machine to Ithaca, pRice used for music assets has been upgraded quite, Universal Music Group’s transaction with Tencent achieved an EBITDA multiple of 30 times Music entertainment. UMG is It is expected that its planned share issuance will have a higher multiple later this year.
Considering these multiples, billboard It is estimated that in the high-end market, the valuation of Big Machine alone may reach US$950 million. But this was before Ithaca sold the Swift catalog to Shamrock Holdings for approximately $300 million. No Swift directory, Big machine Half value It ranges from 300 million US dollars to 650 million US dollars.This means that Ithaca’s remaining shares in technology, movies and games have contributed a lot to Ithaca’s valuation..
In any case, the Carlyle Group may Appears as The biggest winner transaction. Ithaca Holding company And HYBE Said That friday Carlisle After the first investment in 2017, it will sell a large minority stake in Ithaca.
Efriend Before the Swift catalog is sold out, The source pointed out that Clover bought the Swift catalog for $300 million, and Carlyle was the only beneficiary of it.
With Big Machine and SB Holdings, HYBE will Greatly enhance its U.S. holdings. And integrated management and label roster of Bieber, BTS and Grande will To HYBE more Firepower in the entertainment lifestyle market.
This Can be traded also Means HYBE is inheriting a potential Swift headache.The pop star expressed she was dissatisfied last year Above Through the acquisition of Big Machine, she learned that Braun owns her catalog. She said that she had thought about it but never got the chance to buy back her catalog. She then condemned the deal and all those involved.She continues to own her own publications.