Individual BTS members' stake on Hybe valued about $17m/each while value of IU's stake at Edam at least $24m

I wrote this before

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Both Hybe and Edam are dependent on one single act

Bang Sihyuk, who is the owner of Hybe Entertainment, and Lee Jieun, who has been revealed as the owner of Edam Entertainment (the shares 'held' by her manager is hers by proxy), have a common point ; the companies they own are dependent upon one single act.

Hybe's entire portal business is largely dependent upon BTS. Other acts Hybe own do not really bring enough revenues to sustain its business model.

Hybe will stand or fall with BTS, whether some people like it or not.

Edam's entire business…

WhyKnock

Apr 18th 2022

Each BTS member owned 0.17% each, and JHope , RM and Jin selling part of their shares.

Hybe was worth around $10 billion until a few days ago, which translates that each members' share was worth about $17 mil, now about 1/3 less, not accounting for the members who sold part of their shares.

Meanwhile, we now know how much Edam Entertainment is truly valued.

To acquire 7.5% of Edam Entertainment shares owned by Lee Jieun and 5% by Bae Jonghan , probably Lee Jieun's proxy,

Kakao paid

이담엔터테인먼트/최대주주등의주식보유변동/2022.04.29

To acquire 12.5% of Edam stocks owned by IU (and her proxy), Kakao paid $10 million, most likely converted into Kakao Entertainment stock, which has not been offered yet but will be significantly higher when the public offering is done.

Since IU (and her proxy) owned 60% of Edam stock her total share was $24 million ($48 million including her proxy's).

That makes IU's remaining share of Edam valued $18 million (plus her proxy's $20 million, making it effectively $38 million).

IU's Stock in her company (not counting Kakao shares she would be holding) is more valuable than the Hybe stock the members hold individually.

I was significantly mistaken when I estimated her share of Edam was valued 7.5m (plus her proxy's share , making it 15m total). She was at least 10.5m richer (plus 12.5m more including her proxy's shares).

That pushes IU's total net worth to around $60m ($80m including her proxy's shares).

BTS goes around the world while IU mostly kicks back in Korea and only doing some acting and music when she feels like.

And IU is significantly richer than any given BTS individual member, while Mr. Bang has made billions out of them.

I can now understand RM's frustration. IU is still richer than any member of BTS, by a wide margin.

A lot of Armies seem to be angry that BTS did not receive their proper share about lifting Big Hit / Hybe from nothing to where it is now but they express their frustration in a wrong way

Quote from bbgc

What now, she is as rich as Smaug?

Good, she will do more donations to good causes.

And still get her "spending money", by taking trolls to courts.

But otherwise Bill Gates is correct, "Once you get beyond a million dollars, it is still the same burger".

In their case, few million dollars.

Neither of them actually run a business for such things to matter. Owing percentages in the business is not same as running it.

I also won't be surprised, if they have investments in each other - IU in HYBE, BTS/Bang in Kakao etc.

But yes, if Kakao gets SM and then goes for IPO, we would know how much IU has in KakaoM.

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BTS has little say about how Hybe is run while IU appears to have a lot of say about how Edam, and other acts in Kakao (other than entities like Starship over which she has no control) are run.

Quote from pchromo4

RM was one of the BTS members who sold part of his hybe stocks when price was all time high (over 2x the value it is now). he's fine, if kmedia would leave them alone.

normally I don't care for your fear mongering conspiracy theories but I am also curious why IU decided to let kakao buy the additional 12.5% to take majority ownership in EDAM. 10 million (potentially much more at kakao ent IPO) is a lot but IU is already rich, I don't think the additional 10-20 million would make much difference to her vs keeping majority ownership of her company. I wonder if EDAM plans to expand beyond IU, and she'd rather let kakao take charge of management vs bearing responsibility herself.

Kakao entertainment will do a public offering, this year or next year no one knows but it will happen.

So the Kakao Entertainment stocks, not offered to the public as of now, will be significantly valued higher than now.

That was why Yoo Heeyeol, Yoo Jaesuk, etc joined it to participate in the offering

So it is likely that Lee Jieun's $10m proceeds were converted into Kakao Entertainment stock (how much % is not known) and will be valued much higher.

Since Kakao has other labels if it wants to expand it will be thru other labels, and although Shin Sekyung is currently under Edam she doesn't really play a role about how Edam is run (and IU doesn't interfere with SSK's activities).

If Edam expands it will probably be musicians under IU's thumbs, like Antenna's musicians being under Yoo Heeyeol's thumbs.