HYBE takes over Big Hit America, will also merge with Ithaca Holdings

Big Hit Entertainment's new headquarters building in Yongsan, central Seoul. The company officially started using its new name HYBE from March 30. [BIG HIT ENTERTAINMENT]

HYBE is set to grow its stake in the U.S. music market, as the company made a public announcement on Friday that it has taken over Big Hit America and will also merge with Ithaca Holdings, a major U.S. investor whose chairman manages pop stars Ariana Grande and Justin Bieber.

According to the announcement, HYBE — the new name of BTS's powerhouse Big Hit Entertainment — will buy all shares of Big Hit America worth 1.7 trillion won ($1.5 billion).

Later, Big Hit America will merge with Ithaca Holdings through its subsidiary BH Odyssey Merger Sub, after which Ithaca will become Big Hit America's subsidiary and BH Odyssey Merger Sub will dissolve.

"This is a move to actively jump into the U.S. market. Details will be shared later," HYBE said.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]