Big Hit Entertainment is taking their next step forward, which reportedly consists of merging with Source Music and acquiring another idol agency.
On July 29, Korean media outlet Newsen reported that according to multiple industry insiders, Big Hit Entertainment is currently moving forward with an M&A (mergers and acquisitions) deal with Source Music, the agency best-known for the famous girl group GFRIEND. An anonymous industry source told the outlet, “The Korean music industry has long been aware of the close relationship between Big Hit and Source Music. It seems that they have decided that it is now necessary to go beyond a simple partnership and actually merge the two companies in order to amplify their synergy.” The source continued, “I’ve heard that Source Music will be moving into Big Hit’s new building in Yongsan,” adding, “They’re already at the point where they’re discussing which floors Source Music will occupy in the new building.” Newsen also reported that Big Hit Entertainment is in talks to acquire a third, unnamed idol agency. According to the outlet, the agency in question is home to several famous idol groups. A second anonymous source stated, “It’s true that Big Hit and the agency in question are in the process of seriously discussing an M&A deal. Although we can’t disclose the details and conditions of their M&A deal, both sides are looking very favorably upon the proposal, to the extent that we expect results in the near future.”
Nothing is confirmed yet, but this seemed to make at least some logical sense given that Big Hit and Source have been close from the start and that acquisitions of another idol agency is what other large companies (Big 3) have tended to do in order to expand.
Big Hit have confirmed their acquisition of Source.
On July 29, Big Hit Entertainment formally announced, “We recently signed a contract to acquire equity in Source Music, which will become part of our agency Big Hit.” The company continued, “We plan to have Source Music’s current executives remain with the agency, in order to maintain the unique color and independence of the label.” Big Hit Entertainment founder Bang Shi Hyuk remarked, “Big Hit and Source Music ended up merging because we shared similar philosophies about the development and management of our artists.” He went on to express his optimism about the future of the merged companies, commenting, “Because the two companies know each other very well, I expect that this acquisition will be successful. I’m delighted that both sides will now be able to paint an even bigger picture.” Source Music founder So Sung Jin similarly remarked, “I’m delighted that Source Music has become a part of the Big Hit label. I think that in many ways, this is an opportunity for all of our agency’s artists, trainees, and employees to jump forward.” He added, “In particular, I believe that Big Hit’s ability and experience in creating a global artist quickly will become a solid foundation for Source Music, and I’m looking forward to it. Through our organic relationship with Big Hit, we will repay the fans with even better content in the future.”