BTS agency HYBE seeks U.S. deals after withdrawing bid for SM Entertainment

SM Entertainment Co

15/03/2023 03:27

By Hyunsu Yim
       SEOUL, March 15 (Reuters) - South Korea's largest music
label HYBE  352820.KS , which manages hit boy band BTS, will
announce a "substantial number of acquisitions and investments"
this year as the K-pop giant looks to boost its U.S. presence,
its chairman said on Wednesday.
    The company's efforts to expand its portfolio of music
labels and fan community platforms come after HYBE on Sunday
withdrew its plan to take over rival label SM Entertainment
 041510.KQ  after a weeks-long battle with social media giant
Kakao  035720.KS . 
    "We will announce a substantial number of acquisitions and
investments within this year as part of our efforts to widen our
presence in the U.S.," HYBE Chairman Bang Si-hyuk said at a
press conference, adding that the company is looking at
acquiring "top-tier" labels in the Latin music market.
    HYBE owns multiple subsidiary labels and management
companies including Ithaca Holdings, boasting a range of artists
including BTS, Ariana Grande and Justin Bieber. It also operates
Weverse, a fan community platform where artists upload exclusive
content to communicate with fans.
    Despite a rise in spending per person among K-pop fans, Bang
said the growth in popularity of one of South Korea's most
popular cultural exports was slowing in some Southeast Asian
countries in particular. 
    The slowdown was largely, but not exclusively, due to the
absence of BTS, who are currently on a break as a group, he
said.
    "Without BTS, the market drastically shrinks in size," Bang
added.
    Bang declined to comment on details of a new partnership
deal with Kakao Entertainment on fan platform businesses, but
added he was "personally satisfied" with the arrangement despite
losing the bid to acquire SM Entertainment.
    "Platforms where we can mobilise and expand fandoms and
where we can offer services to them as well as video gaming are
integral parts of our plan for the future," he said.

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 (Reporting by Hyunsu Yim; Edited by Jamie Freed)
 ((Hyunsu.Yim@thomsonreuters.com;))