Scooter Braun, a highly prominent figure in the music industry known for his management of top-tier artists, is stepping back from overseeing certain superstar clients to assume the role of CEO at Hybe America, as confirmed by a source closely connected to the situation on Tuesday.
An earlier report from Puck News indicated that Braun's relationship with his long-standing major client, Justin Bieber, was strained. Further accounts from various sources on Monday suggested that Braun had also parted ways with singers Ariana Grande and Demi Lovato.
A well-informed source shared that Braun's company, SB Projects, has ended their professional associations with Lovato and another client, Idina Menzel, on amicable terms.
"All of Scooter Braun's clients have contractual obligations, and negotiations have been underway for several months, aligning with Scooter's expanded role as CEO of Hybe America," the source stated. "Rumors are circulating based on partial information, but they are not accurate."
Discussions about representation changes have been ongoing for a significant period, and the source emphasized that there is no animosity between Braun and the clients. Bieber and Grande remain under contract with SB Projects as they navigate the implications of this new arrangement.
Requests for comment from representatives of Bieber and Grande had not been addressed at the time of the report.
Braun's response to these reports on X, previously known as Twitter, appeared to be in a humorous tone.
Braun initiated the investment firm Ithaca Holdings, which subsequently acquired multiple enterprises and merged with Hybe America in 2021. Hybe, originally named Big Hit Entertainment, is a South Korean entertainment company renowned for the K-Pop sensation BTS.
The company underwent a rebranding in 2021 as it united with Ithaca Holdings. Braun was offered the position of CEO for Hybe's American division as part of the merger agreement.
Braun, whose real name is Scott, transitioned from selling counterfeit IDs to college students to emerging as a major player in the music industry. In a past interview with NPR, he recounted how he ventured into promotion while living in Atlanta, eventually connecting with mogul Jermaine Dupri. Dupri extended a role at So So Def Recordings, a record label, to Braun.
Bieber, discovered as a teenage talent on YouTube by Braun and Usher Raymond, Braun's former business partner, has been under Braun's management since 2008. Notably, Braun is renowned for his stewardship of Bieber's career.
While Braun has established close ties with significant figures in Hollywood, he has also faced public conflict with arguably the biggest name in pop music.
Four years ago, Ithaca Holdings acquired Big Machine Records, which led to Braun obtaining rights to Taylor Swift's initial six albums.
Swift characterized the deal as a nightmare and accused Braun of "manipulative bullying" in a statement. She accused Scott Borchetta, CEO of Big Machine Records, of blocking her opportunity to buy back her albums, instead proposing an agreement where she would gradually regain them "for every new one I turned in."
"When I mentioned 'Scooter Braun' to Scott Borchetta, I was either crying or trying not to," Swift asserted. "They both understood what they were doing, exerting control over a woman who wanted no association with them. In perpetuity. That means forever."
Braun refuted Swift's allegations. He informed NPR that he wished to discuss the sale but was under a nondisclosure agreement at the time.
He acknowledged learning a valuable lesson from that episode and expressed a desire for inclusivity among all parties in the Hybe deal as a consequence.
Swift subsequently re-recorded three of her previous albums, appending "(Taylor's Version)" to the titles to denote ownership. In 2020, her back catalog was sold to Shamrock Capital for $300 million, as reported by Variety.