HYBE Invests $25 Million for 51% Ownership in Secret Foreign Company

As reported by Music Business Worldwide, HYBE Corporation, established by Bang Si-hyuk, has allegedly invested $25 million to acquire a 51% stake in an undisclosed company. This acquisition was finalized on August 1, 2024.

The report indicated that the filing on August 1, 2024, confirmed the corporation’s agreement to buy shares in an unknown firm for $25 million. This detail was mentioned in the section covering events occurring after the report’s date. With Bang Si-hyuk’s company owning 51%, it is anticipated that the undisclosed firm will transform into a subsidiary by the third quarter of 2024.

HYBE’s Recent Acquisition Could Signal the Launch of HYBE 2.0 Reorganization

On August 1, 2024, Bang Si-hyuk’s company revealed its exploration of new business ventures corresponding with the roll-out of its HYBE 2.0 reorganization initiative. This strategic plan intends to enhance focus on music fundamentals, gain medium-term growth momentum, and undergo structural modifications.

Consequently, the company’s three primary business sectors—previously named Label, Solution, and Platform—will now be rebranded as Music, Platform, and tech-oriented objectives for future advancement.

Areas earmarked for selective investments include gaming, audio/voice technologies, generative AI, Original Story Business (OSB), and integrated online and offline experiences, with previous investments in these domains confirmed by Bang Si-hyuk’s company.

In 2021, under the leadership of then-CEO Park Ji-won, the K-pop giant initiated its IPO and acquired Scooter Braun’s Ithaca Holdings for $1 billion.

For example, Netmarble Corporation, launched in 2000 by Bang Jun-hyuk, a relative of Bang Si-hyuk, stands as the second-largest shareholder in the K-pop enterprise.

Moreover, HYBE’s gaming division, HYBE Interactive Media, secured an investment of $80 million to enhance its development and publishing operations within the gaming sector. In 2022, the company acquired a stake in Flint, the creator of the popular Dragon Blaze video game.

The company’s U.S. subsidiaries such as HYBE America Inc., QC Music, and BMLG represent several firms that the K-pop titan has acquired over the years. Prominent artists like Lil Baby and Lil Yachty are signed under the hip-hop label QC Music, while Dolly Parton and Thomas Rhett are associated with BMLG.

As part of the reorganization strategy, the company also expressed its commitment to leveraging its extensive experience in the U.S. market and to foster innovative growth within the country.

In other developments, HYBE’s ongoing public dispute with Min Hee-jin took an interesting turn when she filed for an injunction on September 13, 2024, seeking reinstatement as CEO of ADOR. Min Hee-jin was previously the CEO of ADOR (a subsidiary label of the corporation) until she was replaced by Kim Joo-young on August 28, 2024, at the behest of ADOR’s independent board of directors.

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