South Korean entertainment giant HYBE is once again under fire following the resurgence of allegations tied to its 2021 acquisition of Scooter Braun‘s Ithaca Holdings. Recent reports and online discussions claim that approximately 120 billion KRW (around 83 million USD) in debt assumed during the deal—linked to Braun’s prior business ventures—was effectively paid off using company funds largely generated by BTS, the group’s flagship act at the time.
Background on the 2021 Deal
In April 2021, HYBE (formerly Big Hit Entertainment) announced a merger with Ithaca Holdings, valued at over 1 billion USD. The acquisition brought high-profile artists like Justin Bieber, Ariana Grande, and Demi Lovato under HYBE‘s umbrella, along with Big Machine Label Group. At the time, the deal was hailed as a strategic move to expand HYBE‘s presence in the U.S. market.
Financial disclosures later revealed the total cost exceeded initial reports, reaching approximately 1.2 trillion KRW (about 1.05 billion USD). This included not only the purchase price but also the assumption of Ithaca’s existing debts, estimated at 120 billion KRW. Critics allege this debt stemmed from loans Braun took to acquire Taylor Swift‘s master recordings via Big Machine in 2019—a controversial move that sparked a public feud with the singer.
Reports suggest that after selling Swift‘s masters in late 2020 for a significant profit, Ithaca shareholders (including Braun) distributed proceeds as dividends while leaving residual debt on the company’s books. HYBE subsequently absorbed this liability as part of the acquisition.
To fund the deal, HYBE reportedly utilized 74% of its cash reserves and borrowed an additional 560 billion KRW (386.2 million USD). In 2020-2021, BTS accounted for the vast majority of HYBE‘s revenue through global tours, album sales, and merchandise, making the group the primary driver of the company’s financial strength during that period.
The Recent Controversy
The allegations resurfaced in early January 2026, fueled by a viral post on Twitter through an article by NewTamsa. Critics argue that BTS‘s earnings indirectly financed the debt payoff, raising questions about resource allocation and whether the acquisition benefited HYBE‘s core K-pop operations.
Netizens and fans have expressed outrage, with comments highlighting perceived mismanagement:
• “I really wonder where the money BTS earned went.”
• “Did they siphon money somewhere else or create slush funds?”
NewTamsa directly contacted HYBE Chairman Bang Si Hyuk for comment, but no response was provided.
HYBE’s Perspective and Broader Context
HYBE has not issued a new statement on these specific claims as of January 8, 2026. Historically, the company has described the Ithaca deal as a synergistic expansion, leveraging shared expertise to bridge K-pop and Western markets. Officials have previously defended the acquisition’s value, citing projected synergies despite later challenges—like the departure of several Ithaca-managed artists (e.g., Ariana Grande, Justin Bieber) and Scooter Braun stepping down as HYBE America CEO in July 2025.
The timing of the controversy coincides with anticipation for BTS‘s full group reunion and activities following members’ military service completions in 2025.This story continues to evolve, with fans divided between defendingHYBE‘s business decisions and calling for greater transparency in how revenues are invested.
As HYBE prepares for BTS‘s next chapter, scrutiny over past financial moves shows no signs of fading.
