The One Fact That May Explain Why Scooter Braun and His A-List Clients Are Parting Ways

One of pop's biggest empires, the client roster of super-manager Scooter Braun, is the subject of intense scrutiny this week as rumors swirl about A-list clients parting ways with him. Demi Lovato has confirmed her split from Braun (both parties described it as mutual), while Ariana Grande has not. Idina Menzel and J Balvin left the roster earlier this year while. Meanwhile, Justin Bieber is still working with Braun, according to their representatives.

But regardless of the specifics of these arrangements, a basic question remains: Why is there so much turmoil in the Braun camp? The answer may be simpler, and more mundane, than it appears.

Though Braun has clashed with artists in the past (including Taylor Swift after his company purchased her master recordings, and Kanye West, who fired Braun after Braun refused to work for him on a full-time basis), but this time, all the hubbub appears to simply boil down to business, and specifically Braun's ties to HYBE Corporation, the South Korean entertainment company that launched K-pop megastars BTS.

HYBE purchased Ithaca Holdings, Braun's parent company, in 2021, resulting in Braun becoming the CEO of HYBE's American division. A music industry source with knowledge of the situation told The Messenger the following:

"All of Scooter Braun’s clients are under contract and negotiations have been going on for several months as Scooter steps into his larger role as HYBE America CEO. People are spreading rumors based on what they know, but they are off. Scooter’s team at SB Projects are still handling both Justin and Ariana as they work through what this new structure looks like."

As we await further information, let's look a little closer at HYBE and its ties to Braun.

What is HYBE Corporation?

To understand HYBE, you have to go back to Bit Hit Entertainment Co., Ltd., a company founded in 2005 by songwriter and producer Bang Si-hyuk. The emergence of K-pop as a dominant global force has a lot to do with Big Hit and the man known as "Hitman" Bang. The company not only launched BTS, it actually formed the phenomenally successful group, recruiting leader RM and holding auditions before formally debuting the collective in 2013. Big Hit also launched fellow K-pop stars Tomorrow x Together, Seventeen and Enhyphen. 

In 2021, Big Hit rebranded with a new name, HYBE Corporation, and a newly expanded mission. According to its website, the company strives to be the "world's best entertainment lifestyle platform company based on music." Big Hit Entertainment became Big Hit Music, a label under the HYBE Umbrella. HYBE went on to launch various new ventures, including a BTS comic and a partnership with a Japanese streaming service.

What is the relationship between HYBE and Scooter Braun?

Though the partnership between Braun and the South Korean company is making new headlines this week, it's actually two years old. HYBE, through its American subsidary HYBE America, acquired Ithaca Holdings back in April 2021, making it the owner of Braun's management company SB Projects, as well as Big Machine Label Group. Ithaca shareholders and bondholders, including Braun's clients such as Ariana Grande, Justin Bieber, Demi Lovato and J Balvin, collectively made more than $1 billion off the deal. In January 2023, Braun became the sole CEO of HYBE America.

How will Braun's new "larger role" affect his activities as a manager?

This part is unclear, though from the music industry source's comments to The Messenger, it seems that Braun may be devoting more of his attention to K-pop going forward. As for the recent shakeups: It could be that they were in the cards all along as Braun continued to expand into different corners of the industry. One thing that's clear is that his alliance with HYBE amounts to a pop superpower, and whatever happens next could have major ramifications for the industry as a whole.