What Happened to Ithaca Holdings LLC?
Ithaca Holdings, founded by Scooter Braun, was a prominent American media and entertainment company known for managing top artists and owning significant music assets, including the Big Machine Label Group. In April 2021, it was acquired by South Korean entertainment giant HYBE Corporation for approximately $1.05 billion, becoming a subsidiary under HYBE America. Following the acquisition, Ithaca Holdings' operations were integrated into HYBE America, though the subsidiary has faced scrutiny over financial losses and the departure of key artists, while Scooter Braun has transitioned from executive roles to an advisory capacity within HYBE by 2026.
Quick Answer
Ithaca Holdings was acquired by HYBE Corporation in April 2021 for $1.05 billion, integrating its artist management (SB Projects) and label services (Big Machine Label Group) into HYBE America. While initially intended to expand HYBE's global reach, the subsidiary has since faced significant financial losses and the departure of several high-profile artists. Its founder, Scooter Braun, stepped down as CEO of HYBE America in July 2025 and resigned from HYBE's board of directors in March 2026, now serving solely in an advisory role. The Ithaca Holdings brand has largely been folded into HYBE America.
📊Key Facts
📅Complete Timeline14 events
Ithaca Holdings Founded
Scooter Braun establishes Ithaca Holdings LLC as a media and entertainment holding company.
Carlyle Group Investment
Private equity firm The Carlyle Group invests a minority stake in Ithaca Holdings.
Acquisition of Big Machine Label Group
Ithaca Holdings acquires Big Machine Label Group, including the master recordings of Taylor Swift's first six albums, leading to significant public controversy.
Sale of Taylor Swift's Masters
Ithaca Holdings sells the master recordings of Taylor Swift's first six albums to Shamrock Capital for approximately $300 million, prior to the HYBE acquisition.
Acquired by HYBE Corporation
HYBE Corporation (formerly Big Hit Entertainment) acquires 100% of Ithaca Holdings through its subsidiary HYBE America for approximately $1.05 billion. Scooter Braun joins HYBE's board and becomes co-CEO of HYBE America.
Initial Financial Deficit Post-Acquisition
Ithaca Holdings reports a deficit of ₩7.90 billion KRW (about $5.37 million USD) in the first half of 2021 under HYBE America.
HYBE America Acquires Quality Control Music
HYBE America, under Scooter Braun's leadership, acquires Atlanta-based hip-hop powerhouse Quality Control Music for approximately $300 million.
Scooter Braun Retires from Artist Management
Scooter Braun announces his retirement from artist management after 23 years to focus on his executive role at HYBE America.
Scooter Braun Steps Down as HYBE America CEO
Scooter Braun transitions from CEO of HYBE America to an executive advisory role, remaining on HYBE's board. Isaac Lee is appointed Chairman and CEO of HYBE America.
Reports Question Ithaca Acquisition Value
Reports emerge questioning HYBE's valuation of Ithaca Holdings and highlighting significant post-acquisition losses for HYBE America.
Exclusive Report on Acquisition Irregularities
An exclusive report by Newtamsa raises concerns about irregularities in HYBE's acquisition of Ithaca Holdings, including the pre-acquisition sale of Taylor Swift's masters and subsequent financial losses.
Allegations of BTS Revenue for Debt Repayment
Allegations surface that BTS revenue was utilized to repay an estimated $83 million USD in debt related to the Ithaca Holdings deal, sparking scrutiny over HYBE's financial transparency.
HYBE Injects $100M into HYBE America
HYBE Corporation injects $100 million into its US subsidiary, HYBE America Inc., to support its business operations amid ongoing restructuring.
Scooter Braun Resigns from HYBE Board
Scooter Braun officially resigns from HYBE's board of directors, effective March 30, 2026, and continues to serve the company in an advisory capacity.
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🔍Deep Dive Analysis
Ithaca Holdings LLC was established in 2013 by music industry executive Scooter Braun, aiming to build a diversified media and entertainment company with interests spanning music, technology, film, television, brands, and culture. The company quickly rose to prominence through its management of global superstars like Justin Bieber and Ariana Grande via SB Projects. A pivotal moment in Ithaca's history came in June 2019 with its acquisition of Big Machine Label Group (BMLG), a deal that notably included the master recordings of Taylor Swift's first six albums, sparking significant public controversy.
In November 2020, prior to its acquisition by HYBE, Ithaca Holdings sold Taylor Swift's master recordings to Shamrock Capital for approximately $300 million, a move that generated substantial profit for Ithaca but also raised questions about the assets being transferred in the upcoming HYBE deal. The major turning point for Ithaca Holdings occurred in April 2021 when HYBE Corporation, the South Korean entertainment powerhouse behind BTS, acquired 100% of Ithaca Holdings through its subsidiary HYBE America for an estimated $1.05 billion. This landmark deal brought a vast roster of Western artists under the same corporate umbrella as HYBE's K-pop acts, with Scooter Braun joining HYBE's board and becoming co-CEO, then sole CEO, of HYBE America.
Post-acquisition, Ithaca Holdings, operating under HYBE America, began to face significant challenges. Reports from 2025 and 2026 highlighted substantial financial losses for HYBE America, with deficits of approximately ₩7.90 billion KRW (H1 2021), ₩69.0 billion KRW (2022), ₩142 billion KRW (2023), and ₩140 billion KRW (2024), accumulating to over ₩400 billion KRW (about $272 million USD) in total losses over four years. Critics, including ADOR CEO Min Hee-jin, publicly questioned the valuation of the Ithaca acquisition, especially given the prior sale of Taylor Swift's masters and the subsequent financial underperformance. Furthermore, several high-profile artists, including Justin Bieber and Ariana Grande, reportedly parted ways with SB Projects management, a core part of Ithaca Holdings, by 2023-2025, further impacting the division's perceived value and operational strength.
In July 2025, Scooter Braun stepped down from his role as CEO of HYBE America, transitioning to an executive advisory role while remaining on HYBE's board of directors. Isaac Lee was appointed as the new Chairman and CEO of HYBE America. The restructuring continued into 2026, with HYBE injecting $100 million into HYBE America in March to support its operations. The most recent development is Scooter Braun's resignation from HYBE's board of directors, effective March 30, 2026. He now continues to work with HYBE in an advisory capacity, marking the end of his formal executive and governance roles within the company. The Ithaca Holdings brand itself has largely been absorbed and its operations integrated into HYBE America, with the standalone name less frequently used in recent reporting.
What If...?
Explore alternate histories. What if Ithaca Holdings LLC made different choices?