HITS Daily Double


HYBE BE BAD: HYBE’s acquisition of Quality Control is a major win for the South Korean company’s U.S. CEO, Scooter Braun. It’s clear the deal was shepherded by Braun, who has a longtime association with QC co-founders Coach and P from his days in Atlanta many years ago. Also of interest in the deal are that Damien Granderson reps QC and that The Raine Group’s valuation, under the guidance of Fred Davis, played a significant role. Davis reportedly spent quite a bit of time in South Korea over the last few months and was also involved in negotiating the deal with Granderson.

The estimated valuation is $300m, but there is greater potential depending on the back-end generated by the QC holding company, which HYBE acquired; that entity encompasses the label JV with UMG, the artist-management and sports-management concerns and the film and TV divisions. As noted in the press release, the existing ties between HYBE and UMG lay the groundwork for an ongoing relationship between QC and Universal. The label group is where HYBE and Braun have most of their projects as well, with Justin Bieber, Ariana Grande and Big Machine Label Group all going through UMG.

QC’s JV label deal with UMG was reportedly in its last year, and there was much speculation prior to this development regarding a new negotiation of the arrangement. Insiders say this is still an open issue but see it being resolved now that the QC/HYBE pact is done.

ANOTHER ONE: DJ Khaled’s new UMG deal moves his We the Best label to Def Jam and positions him as a “global creative consultant” for the entire Universal family. It’s a huge coup for Sir Lucian and for Def Jam’s Tunji Balogun and LaTrice Burnette, who's had a close relationship with the hitmaking artist-producer for years. Khaled's also had a very strong bond with Sylvia Rhone during his time at Epic.

ESTATE PLANNING: Variety has reported that the Michael Jackson estate has done a massive deal with Sony for 50% of the late megastar’s catalog, including publishing and recording rights, the hit Broadway musical and a forthcoming biopic. Estimated at $800-900m, the deal is widely expected to shatter all records for catalog acquisition. Estate co-executors John Branca and John McClain have done a historic job of taking MJ finances from a shambles to a massive fortune, and odds are that the remaining half of the catalog will balloon in value in the coming years.