Firm BizFirm Biz
  • Daily Biz
  • The Arena
  • Money Talks
  • Culture
  • About Firm Biz
  • Contact Us
Facebook Twitter Instagram
  • Daily Biz
  • Money Talks
Firm BizFirm Biz
  • The Arena
  • Culture
Firm BizFirm Biz

CASH OUT ALERT: HYBE America Acquires Quality Control in $300 Million-Plus Deal Led by Scooter Braun

Deveon DowellFebruary 8, 2023 Money Talks
Share Facebook LinkedIn Twitter Email

HYBE America has entered into an agreement to merge and acquire Quality Control (QC Media Holdings, Inc.), the Atlanta-based entertainment company covering music (City Girls and Migos are among its signings), sports, film and television founded by CEO Pierre “P” Thomas and COO Kevin “Coach K” Lee.

The deal, valued at $320 million in stock and cash, was led by HYBE America CEO Scooter Braun whose relationship with Coach and P, as Lee and Thomas are known, goes back to the early 2000s when Braun was living in Atlanta. It aligns with HYBE’s mission to build a global entertainment giant rooted in music with interests in other mediums and platforms related to entertainment, lifestyle and culture. QC’s music roster will continue its affiliation with Universal Music Group.

It also marks the first major move by Braun since becoming sole CEO of HYBE America earlier this year. The South Korean entertainment leader’s U.S. portfolio includes SB Projects, management home to Justin Bieber, Ariana Grande, the Kid Laroi and Migos member Quavo, among others, as well as Big Machine Label Group whose roster includes Country artists Tim McGraw, Thomas Rhett and Rascal Flatts, as well as Rock and Roll Hall of Fame nominee Sheryl Crow. HYBE’s current market cap stands at $6.6 billion.

“I am so proud and honored to have Coach and P join Bang and I as our partners,” said Braun in announcing the deal. “QC is one of the most significant independent labels in the world, working with incredible artists who are, and remain to be, the voices of culture. I’ll never forget riding around Atlanta over 20 years ago with Coach discussing our dreams and ambitions and how we said ‘If they let us in the game, we are never going to give it back.’ Now, all these years later, we are joining forces to make these dreams a reality.”

Added P: ““HYBE are perfect partners for Quality Control as we come together to take our story and work global. All of HYBE’s leaders are entrepreneurs with phenomenal combined history finding talent and taking it to the highest levels. Taking QC worldwide requires key partners like this who understand building something from the bottom and aiming sky high. It matters to us greatly their grasp of culture and acutely seeing what QC has built and the limitless path of where it can go.”

“Over many years Scooter and I have cultivated real trust and a common way of looking at the world and culture. An added bonus of this partnership is the fact that both QC and HYBE have existing relationships with the UMG family and that will create an easy flow that will benefit the artists. The artists of QC are our focus and their best interests will be incredibly supported with this partnership.”

It’s worth noting that the key architects of the deal — Braun, Lee, Thomas and HYBE chairman Bang Si-Hyuk — are all minorities whose U.S. operations employ multiple female executives in top roles, with SBP boasting a 70% non-male staff. Indeed, it’s been speculated that Ethiopia Habtemariam, who exited her CEO post at Motown Records in Nov. 2022, will join the new company in a leadership position.

In building the multi-faceted QC, Coach and P have grown into one of the biggest independent companies in hip-hop, with a catalog that’s amassed over 37 billion streams through 2022. Founded in 2013 by Lee, formerly manager of rappers Jeezy and Gucci Mane, and Thomas, who owned a recording studio, the pair immediately cultivated a family atmosphere in the company, with the two principals acting as mentors and father figures to many of QC’s artists. In short order it had begun scoring hits with Migos and followed with Lil Yachty, City Girls, Lil Baby and others in rapid succession.

While fiercely independent, the label struck a joint venture deal in 2015 with Motown via UMG’s Capitol Music Group that has been a big success for both, although the departure of Habtemariam, who the pair referred to as their “sister,” changed the chemistry of the relationship.

In the announcement, Braun noted, “It’s important to me and my team that P and Coach continue to have the freedom, and now our global resources, to continue to do what they do best; facilitate and nurture great art and culture.”

QC has in recent years expanded both its headquarters — with a West Atlanta building that houses four studios as well as its offices — and its businesses, launching Solid Foundation Management shortly after the label and, in 2019, Quality Control Sports, which oversees the careers of basketball, football and baseball players. In addition, QC has involved itself in myriad charitable efforts, including providing groceries for 1,000 Atlanta-area families at the start of the pandemic.

For all its success, QC also has been struck by tragedy, with the murders of rapper Marlo in 2020 and Migos co-founder Takeoff last November — the latter of whom was killed in a shooting at a party in which police said he was an “innocent bystander.”

“This partnership is a vital part of our plan to innovate the entertainment industry through a diversified portfolio and innovative technologies,” said Bang Si-Hyuk, chairman of HYBE. “We will work together to continue adding to the global depth of hip-hop.”

Added HYBE CEO Jiwon Park: “Based on hip-hop, QC has been making a strong presence in the American music scene. With our shared vision, I have high hopes in what we can operate and achieve together.”

“P and I are ecstatic about this partnership with Scooter and HYBE and are confident they can get us to our global ambitions we’ve had in our scope since the beginning of our company as nothing means more than our artists impacting world-wide,” said Coach.

Join the FirmBiz360 Newsletter

Add A Comment

Share. Facebook LinkedIn Twitter Pinterest Email

ELSEWHERE ON FIRM BIZ:

NFL, RedBird Capital Announce New Venture to Deliver Sunday Ticket to Bars and Restaurants

Uber Eats Is Deleting “Ghost” Restaurants So Customers Don’t Get Scammed

Can a candidate run for President while in Prison?

MSE exec, BET co-founder Sheila Johnson to publish memoir

Mobile Sports Betting: Booming in Some States, Others Shy Away

Remote Work Is Declining in U.S., Says Labor Department

Currenty Trending

Brandon Johnson’s Anti-Crime Plan Looks A LOT Like Lori Lightfoot’s

Has Mayor Vi Lyles flamed out in Charlotte?

Remote Work Is Declining in U.S., Says Labor Department

MSE exec, BET co-founder Sheila Johnson to publish memoir

Spotify is revamping its podcaster tools, including Anchor, and is partnering with Patreon

YouTube TV Raises Price for Monthly Subscribers

Redesign|Rebuild|Reclaim
Redesign Rebuild Reclaim
Redesign Rebuild Reclaim
Listen OnApple PodcastsListen OniHeart RADIO
Michelle Pascal

Publicist/Event Coordinator Michelle Pascal (@themichellepascal) discusses her unconventional road to Public Relations, coordinating a fashion show outside on a Harlem block, and the keys to keeping clients happy as a Publicist. (Season 2, Episode 1)

Produced and Hosted by Chuck Holliday
Theme Music: “Looking Up” by Versa Jay Beats
Show Page: www.suite929.tv/podcasts/redesignrebuildreclaim/

Michelle Pascal
Episode play icon
Michelle Pascal
Episode Description
Episode play icon
Mo Brown Suga
Episode Description
Episode play icon
Kenya Thomas
Episode Description
Episode play icon
Jennifer Moxley
Episode Description
Episode play icon
Kerry Yanique Croft
Episode Description
Search Results placeholder

   
About Firm Biz  •  Contact Us  •  Privacy Policy  •  Corporate Website
© 2023 Firm Biz, a unit of Suite929 LLC

OUR PUBLISHING NETWORK:
Suite929tv   •   Lifestyle Republic   •   Tech We Like   •   G Style Magazine   •   The 9ine Podcast Network

Type above and press Enter to search. Press Esc to cancel.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT