73% of overseas sales (accumulated in the third quarter of 2025).
The world’s top four record labels by enterprise value (Sony Music, Universal Music, Warner Music, and Hive).
K-pop group’s first Grammy Awards nomination (Cats Eye, Best New Artist).
In a groundbreaking move, Hive has solidified its position as a global entertainment powerhouse just five years after acquiring Ithaca Holdings. The company’s journey began with its IPO in October 2020, raising an impressive 1 trillion KRW (750 million USD). Hive then secured an additional 300 billion KRW (225 million USD) in the U.S., allowing it to gain full ownership of Ithaca by April 2021. Ithaca, founded by music industry titan Scooter Braun, has been a game-changer for Hive’s international expansion.
Hive’s acquisition of Ithaca marks a paradigm shift in the K-pop industry’s approach to the U.S. market. Rather than following the traditional path of exporting Korean-developed artists, Hive boldly invested in the American pop music ecosystem by acquiring the agency that launched superstars like Justin Bieber and Ariana Grande.
What made Ithaca the perfect fit for Hive? It wasn’t just about star power. In an exclusive interview with Mail Business, Hive’s CFO Lee Kyung-joon revealed that Ithaca’s deep understanding of K-pop and fandom culture was the deciding factor. Hive’s strategy wasn’t simply to export music, but to transplant an entire system of artist development and fan engagement.
\”Scooter was instrumental in managing Psy’s international breakthrough with ‘Gangnam Style’ back in 2012,\” Lee explained. \”At a time when few American artists had dedicated fandoms, Scooter’s protégés, Bieber and Grande, were pioneers in cultivating passionate fan bases.\”
Despite these synergies, Ithaca’s high-profile acquisitions have faced scrutiny. Grande has pivoted towards film and theater, while Bieber’s health issues have impacted his musical output. These developments have led to increased goodwill on the balance sheet and ongoing amortization of intangible assets.
\”The U.S. music industry operates differently from K-pop,\” Lee acknowledged. \”In Korea, agencies typically control most aspects of an artist’s career and IP. In the States, these rights are often split between agencies, labels, and artists. We anticipated challenges, but the reality has been even more complex.\”
Adapting to these realities, Hive has pivoted to a \”multi-home, multi-genre\” strategy. The company is developing a new boy group stateside and collaborating with hitmaker Ryan Tedder, moving beyond Ithaca’s traditional management model.
\”Valuing entertainment companies isn’t just about the numbers,\” Lee emphasized. \”Market caps can fluctuate wildly relative to profits. A successful IP can be a game-changer, so consistent IP creation is key.\”
Hive remains bullish on its U.S. operations. \”Excluding certain accounting costs, Hive America is already cash-flow positive,\” Lee revealed. \”We’re optimistic about reaching break-even point within the year.\”
[Reporter Woo Soo Min]
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