Hybe: Analysts’ positive outlooks on BTS’ company’s merge with Justin Bieber’s agency Ithaca Holdings

Hybe is gearing up to take the world by acquiring the American company Ithaca Holdings. Many business analysts say this is also a move to diversify and lessen the company’s dependence on BTS, Hybe’s main source of income.

As per Korea Joongang Daily, 85% of the company’s revenue is generated from BTS, and this percentage already decreased since it acquired Pledis Entertainment. Still, everyone can see the seven-member group remained Hybe’s top-earner, and prior to having other groups in the company, the percentage was originally 97%.

Market reviews from analysts

Now, after the announcement of Hybe’s acquisition of Scooter Braun’s Ithaca Holdings, there was a mixed review from the market, but most were on a positive note. Firstly, many analysts said that the buyout would show good results over the longer term.

They said that it was a good move because it will surely lessen Hybe’s dependence on the BTS members, especially now that each member is close to the age when they have to enlist in the army. This means that they will leave and will not be able to produce albums or promote during their absence.

Apparently, the company’s earnings will surely plummet, but with the acquisition of Ithaca, Hybe will not lose sources of revenue even when BTS temporarily leaves the entertainment scene to complete their mandatory military service.

Moreover, an analyst at eBest Investment & Securities, Ahn Jin Ah, said that the merger with Ithaca would also give Bang Si Hyuk’s company’s a negotiation power to buy bigger talent management labels overseas.

As for Park Ha Kyung, an analyst at Korea Investment & Securities, he agreed that the buyout would lower Hybe’s over-reliance on BTS. Thus, the company will remain safe once they leave for the army.

"Revenue generated from global pop singers will continue to lower the reliance on BTS,” Park said. “The diversity of music genres, including hip hop, Latin and country music, from what only used to be 100 percent K-pop music gives a new growth engine for the company."

Hybe to house foreign superstar artists

In any case, aside from BTS and other Kpop stars, Hybe will now have Justin Bieber, Ariana Grande, Demi Lovato, and more under its roof. The Korea Herald reported that Bang Si Hyuk purchased Ithaca Holdings for almost $1 billion or KRW1.07 trillion.

Justin Bieber alone has big followers worldwide, and this is the same for Ariana Grande and the others. Clearly, Hybe will not run out of resources as everyone in the company are famous and popular in their own fields.