HYBE to Establish BIGHIT Music as Independent Subsidiary Amid Corporate Restructurings

HYBE Corporation, the South Korean entertainment conglomerate renowned for managing global superstars BTS, has announced plans to restructure its corporate framework by establishing BigHit Music as an independent subsidiary. This strategic move aims to enhance operational efficiency and provide an optimal working environment for its artists.

The proposal was unveiled during HYBE’s recent board meeting, where it was decided that BigHit Music would be spun off as a wholly-owned subsidiary. This decision reflects HYBE’s commitment to refining its organizational structure to better support its core business sectors. The upcoming shareholders’ meeting on May 14 will see votes cast on two significant measures: the approval of BigHit Music’s separation and the appointment of Scott Samuel “Scooter” Braun to HYBE’s board of directors.

BigHit Music, originally operating under the HYBE Labels division, has been instrumental in managing BTS and other prominent artists. By granting it greater autonomy, HYBE aims to bolster its music production capabilities and artist management services. This restructuring is part of the broader “HYBE 2.0” strategy, which seeks to diversify the company’s portfolio and reduce dependency on any single revenue stream.

The inclusion of Scooter Braun, a notable figure in the global music industry, on HYBE’s board is anticipated to bring valuable insights and foster international collaborations. Braun’s experience and network are expected to play a pivotal role in HYBE’s expansion and strategic initiatives moving forward.

As HYBE continues to evolve its business model, the establishment of BigHit Music as a separate entity underscores its dedication to innovation and adaptability in the dynamic entertainment landscape. Stakeholders and fans alike will be keenly observing the outcomes of the forthcoming shareholders’ meeting and the subsequent developments in HYBE’s corporate journey.

BigHit Music, which will be newly established as a separate, private entity, is expected to give artists the best working environment and the best content for fans by focusing on the label’s already existing activities of music production, artist management and fan communication.

HYBE will also absorb HYBE 360 and HYBE IP to “increase operational efficiency, establish a faster system for making decisions and strengthen the capabilities of making secondary & tertiary businesses based on each artist’s IP.”

HYBE stated,

“With the launch of the hybrid system we have reorganized our corporate structure to further improve our competitiveness as a company, and we are not considering the sale or IPO of BigHit Music. We look forward to accelerating the transition to the world’s top entertainment lifestyle platform company with the improvement of the core business sectors and expanding the synergy between the businesses inside the company.” SOURCE

OPINIONS:

-By having BigHit Music as a separate entity and with no plan of IPO, for me it means, Bighit Music has the creative freedom to create & produce music that they want without having to worry about profitability/pleasing stakeholders

-It means BigHit Music is going to be run independently and it’s basically staying the way that it is and doing everything they were doing before.

-Yes this is such a good news. No outsiders aka investors will be able to control BigHit and their artists. Big Hit Music includes BTS TXT & Lee HYUN.