HYBE considers financing of 500B won scale ... acquisition again = Korea

South Korean entertainment company HYBE is considering raising 500 billion won in funding to acquire companies and expand its business in the United States, Bloomberg reported on June 2nd.

Bloomberg, citing multiple sources, said HYBE is in discussions with investors about raising funds, and everyone is open to a strategic and financial partnership.

Funding discussions are currently in the early stages, and the size and timing are said to be fluid. Bloomberg added that HYBE's fundraising scale was once discussed as up to about 1 trillion won, but the company cut the scale by about half, reflecting market conditions.

HYBE chairman Bang Si Hyuk has diversified its business to reduce its dependence on specific departments, and is also promoting the acquisition of overseas labels.

Prior to this, HYBE acquired US media company Ithaca Holdings, which includes Justin Bieber and Ariana Grande, in 2021 for 1.2 trillion won. In February this year, it also acquired the American hip-hop label Quality Control.

Chairman Bang said at a forum in March, "We are considering acquiring a top-notch label that is interested in innovation in the future with a philosophy that matches ours in the Latin market. We are looking at two companies" he said.

This is why there are speculations that HYBE's new fundraising of hundreds of billions of won will secure live ammunition for another acquisition.