Scooter Braun will step down from his position as CEO of HYBE America and transfer right into a consulting position, the corporate introduced Tuesday.

The chief and entrepreneur will probably be transitioning into an government advisory position, the place he’ll stay as a director of HYBE’s board of administrators and senior advisor to HYBE’s CEO-chairman. Isaac Lee will take over his position as CEO of HYBE America.

Sources inform Selection Braun is stepping down with the intention to concentrate on his subsequent endeavor, which was unclear at press time.

“Scooter has been a rare companion, a visionary government, and a real catalyst for cultural change,” HYBE chairman Bang Si-Hyuk stated in a press release. “His contributions have been important in establishing our formidable presence within the U.S. market. I’m deeply grateful for his management, his astute instincts, and his unwavering ardour for artists. We want him immense success in his thrilling subsequent chapter and stay up for persevering with our partnership in executing HYBE’s world imaginative and prescient.”

Throughout his tenure the corporate acquired the Atlanta-based hip-hop powerhouse High quality Management (whose catalog contains Lil Child, Lil Yachty, Metropolis Ladies and earlier Migos releases) for a reported $320 million, and struck a distribution deal for Jermaine Dupri’s So So Def label. It additionally bought off the Massive Machine label’s rock division for an undisclosed sum earlier this 12 months.

Braun’s Ithaca Holdings merged with HYBE in April 2021, giving the corporate a 100% stake in Ithaca and its properties, which on the time included SB Initiatives and administration purchasers Justin Bieber, Ariana Grande and Demi Lovato, amongst others, in addition to Massive Machine Label Group. With the merger, Braun joined the board of HYBE and retained the CEO title for its American enterprise. After serving initially as co-CEO with Lenzo Yoon, he was named sole CEO in January of 2023.

Braun was one of the crucial highly effective artist managers within the music business, however he grew to become the item of Taylor Swift’s ire in 2018 after he acquired Massive Machine Label Group and, with it, the rights to her first six albums. She felt she had not been given a good likelihood to accumulate the rights to her albums and bitterly criticized Braun in feedback and social media. He bought the rights to the catalog for a tidy revenue 18 months later; Swift acquired them herself earlier this 12 months. Nevertheless, the injury to his profile was important, and never enhanced by his gradual parting of how with Bieber — accompanied by a dispute over cash, though that auditors have reportedly decided that the singer really owes Braun a minimum of $1 million — though Braun said that he had been deliberately stepping away from artist administration for a lot of months.

Whereas HYBE is a longtime powerhouse of the Ok-pop style, notably with the teams BTS and Seventeen, the corporate has had a difficult few months. Prosecutors raided the corporate’s Seoul headquarters in Could amid allegations of insider buying and selling involving a former government.

The Seoul Southern District Prosecutors’ Workplace is wanting into allegations {that a} former HYBE government illegally earned earnings of as much as $176,500 {dollars} (240 million gained) by means of inventory buying and selling utilizing insider data, per The Korea Instances.

The identification of the previous worker stays hid as officers examine that individual’s buy of YG Plus (an affiliate of YG Leisure) shares, a transaction stated to have occurred after the accused government realized of HYBE’s plan to spend money on the corporate.

Elsewhere, studies of illegal conduct by the hands of HYBE’s Founder and Chairman, Bang Si-hyuk, surfaced in December on account of the chief being monitored by Korea’s Monetary Providers Supervisors. Although separate from the investigation that occured this morning, monetary regulators in Korea are wanting into claims Si-hyuk purposefully misguided buyers forward of the corporate’s first public providing in 2020.

Within the final 5 years, the corporate has labored to broaden internationally, with budding sectors in world markets together with Latin America and the United States.