You might have seen from our protection this week that we’ve been digging by means of HYBE’s regulatory filings.
By doing so, we’ve been in a position to paint a strong image of the South Korean leisure big’s possession construction in 2024.
As we reported Tuesday (September 10), the second-largest shareholder in HYBE is Netmarble Company, a online game developer based in 2000 by Bang Jun-hyuk – a relative of HYBE’s largest shareholder, and founder/Chairman, Bang Si-hyuk.
However the structure of HYBE’s shareholding construction wasn’t the one attention-grabbing element we found when reviewing the agency’s semi-annual report.
Right here’s one other one: HYBE just lately spent USD $25 million to accumulate a 51% stake in an unknown firm.
In accordance with the submitting, in a piece devoted to occasions that “occured after the date of writing”, the “consolidated firm entered into an settlement to accumulate shares of one other company for USD 25 million on August 1, 2024.”
This part of the regulatory submitting added that, “by means of this transaction, the consolidated firm’s [HYBE’s] shareholding is 51%, and it’s scheduled to be included as a subsidiary within the third quarter.”
HYBE’s swooping for a majority stake within the thriller agency follows a pattern of M&A offers struck by the Okay-Pop big because it expands globally and into numerous verticals apart from music.
In November 2023, HYBE expanded into the booming Latin Music market, for instance, by buying the Latin Music firm Exile Music.
And in February final 12 months, HYBE America, led by Scooter Braun, acquired Atlanta rap powerhouse QC Media Holdings aka High quality Management, residence to acts akin to Lil Child, Migos, Lil Yachty and Metropolis Women, in a deal was price $300 million, based on Korean regulator filings.
HYBE’s most notable M&A transfer lately, nonetheless, was the $1 billion-plus acquisition of Braun’s Ithaca Holdings in 2021.
The corporate has additionally invested vital sums in labels inside HYBE’s multi-label system, akin to Pledis, through which HYBE took a majority stake in 2020.
Elsewhere, simply final month, when HYBE introduced its HYBE 2.0 restructure, it revealed that it had been “exploring new enterprise alternatives.”
It added that it deliberate to make “discreet investments” within the following areas: gaming, audio/voice know-how, generative AI, Unique Story Enterprise (OSB), and Built-in on-line and offline experiences.
The corporate has already been investing in these areas over the previous few years in fact.
Within the video games sector, for instance, as we reported final month, the corporate’s video video games unit, HYBE Interactive Media, raised $80 million to develop its growth and publishing efforts. In 2022, HYBE acquired a stake in sport developer Flint, maker of the favored Dragon Blaze sport.
Final summer time, as reported by Enterprise Beat, HYBE and its gaming arm HYBE IM invested $21.8 million in South Korea-based developer Aqua Tree and one other $1.45 million into South Korea-based Motion Sq. earlier this 12 months.
In the meantime, within the AI area, HYBE struck a $32 million deal for Voice AI platform Supertone in 2023.
Not a lot is understood concerning the firm referenced within the regulatory replace from August 1 talked about above, however we’ll be holding a detailed eye on HYBE’s filings within the coming weeks.
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