Scooter Braun has been one of the biggest behind-the-scenes names in the music industry for years, but a growing number of reports indicate that empire might be swaying—and that could have a notable impact on Hybe America, the U.S. division of the South Korean music conglomerate that bought his management company two years ago.
Variety reports at least three high profile artists represented by Braun could be moving on to other managers. Demi Lovato “amicably” parted ways with Braun earlier this month, and there are reports that Justin Bieber and Ariana Grande are considering a departure, as well.
In June, Bloomberg reported that Hybe was seeking to raise about $380 million to fund more acquisitions in the U.S. and expand its business beyond K-pop. If Braun is having problems holding onto talent, that could stand in the way of that deal-making and the company’s larger quest to diversify its holdings.
The status of Bieber and Grande with Braun is murky, though. Some outlets say they’re headed separate ways. Variety’s sources indicate that’s not happening. In any event, there’s lots of “they went that’a way” finger pointing and off-the-record misdirection that has only made things more unclear.
All of the whispers and speculation come as Braun, who has guided several musicians to superstar levels of fame, attempts to focus on his new job: sole CEO of Hybe America. (He initially shared the CEO title with Lenzo Yoon, but that changed earlier this year.)
Hybe, which declined Fast Company’s request to comment on the situation, is the company behind BTS and several other K-Pop superstars. Two years ago, it bought Ithaca Holdings, the parent company of Braun’s SB Projects, for $1.05 billion.
That was a windfall for shareholders of Braun’s company as well as his artists and staff. Bieber and Grande received almost $11 million each. Lovato got shares worth over $1 million. Braun pocketed $86 million; and Scott Borchetta, CEO of Braun’s Big Machine Label Group, got $31 million.
Braun is a hitmaker who has an eye for rising talent. And the stable of artists he brought with him to Hybe made that company an even bigger force in the recording industry. However, he also has a history of conflict with major talents. Grande left for a number of months in 2016, before changing her mind and returning. Kanye West fired him via Twitter in 2018, writing, “I no longer have a manager. I can’t be managed.”
His biggest public black eye came in 2019, though, when Taylor Swift spoke out against him after learning that he had acquired the record label that owned her musical catalog. “Scooter has stripped me of my life’s work, that I wasn’t given an opportunity to buy,” she wrote at the time on Tumblr. “Essentially, my musical legacy is about to lie in the hands of someone who tried to dismantle it.” (Swift, of course, famously opted to re-record songs from her first five albums.)
Bieber and Grande haven’t released new albums for years, but both still have fervent followings—and should reports of their departure ultimately prove accurate, it could weaken Hybe’s client lineup. (The status of Bieber and Grande’s contracts and how much longer they are legally bound to be represented by Braun and Hybe could not be determined.)
While new artists, including Puerto Rican singer Ozuna and rapper Kalii, are still being added to the company’s roster, the potential loss of three big-name artists could discourage other fast-rising music stars to sign on in the future.
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