HYBE is a South Korean entertainment company best known for managing and producing global music acts, particularly in the K-pop industry. It was founded in 2005 as Big Hit Entertainment and later rebranded as HYBE in 2021, and is the home of internationally acclaimed KPop group BTS.
Recently HYBE returned to the headlines after they were accused of using BTS' funds to pay off Scooter Braun's debts after acquiring Ithaca Holdings.
Background to the Ithaca Holdings Acquisition
In April 2021, HYBE, then known as Big Hit Entertainment, announced its acquisition of Scooter Braun's Ithaca Holdings in a deal valued at more than £740 million (approximately $1 billion). The transaction brought artists such as Justin Bieber, Ariana Grande, and Demi Lovato into HYBE's portfolio, alongside Big Machine Label Group, and was positioned as a move to strengthen the company's presence in the US market.
However, follow-up financial disclosures showed that the overall cost was higher than initially reported, reaching around £780 million (approximately $1.05 billion), once additional liabilities were included.
Assumed Debt and Its Origins
Among the liabilities absorbed by HYBE was an estimated £62 million (approximately $83 million), which Ithaca Holdings carried prior to the acquisition. Critics have linked this debt to loans Scooter Braun took out in 2019 to acquire Taylor Swift's master recordings through Big Machine Label Group, a purchase that later became the subject of public dispute.
Reports indicate that Swift's masters were sold in late 2020 for a substantial profit, after which proceeds were distributed to shareholders, while remaining debt stayed on Ithaca's books. When HYBE finalised the acquisition, this outstanding liability became part of the overall deal structure.
How the Deal Was Financed
To complete the acquisition, HYBE reportedly used around 74 per cent of its available cash reserves and secured additional borrowing amounting to approximately 560 billion KRW, or about £290 million (approximately $386.2 million). During the 2020 to 2021 period, BTS accounted for the majority of HYBE's revenue, driven by global touring, album sales, and merchandise.
As HYBE's flagship act at the time , BTS's commercial success formed the backbone of the company's financial capacity to pursue large-scale acquisitions.
The issue returned to public attention in early January 2026 following a viral post on social media linked to an article published by NewTamsa, an independent South Korean investigative media outlet that gained attention for publishing in-depth reports on politics, business, and corporate governance and often challenging large organisations and public figures.
The report alleged that company funds generated largely by BTS were effectively used to pay off the inherited debt associated with Ithaca Holdings, reigniting debate over how HYBE allocated revenue during that period.
Public Reaction and Fan Response
This prompted strong reactions from fans and netizens, many of whom questioned how BTS's income had been used. Comments circulating online included statements such as 'I really wonder where the money BTS earned went' and 'Did they siphon money somewhere else or create slush funds?'.
NewTamsa reported that it contacted HYBE Chairman Bang Si Hyuk for comment, but no response was received. As of 8 January 2026, HYBE had not issued a new statement addressing the revived allegations.
