I hope when people talk about Hybe they know that doesn't include BigHit

    Kpoppies lose their minds when it comes this subsidiary/parent stuff.

    It's literal COMMON SENSE. Bighit is a SUBSIDIARY of Hybe.


    Hybe owns Bighit. Bighit is COMPLETELY AND UTTERLY ANSWERABLE to Hybe. Every single godforsaken penny earned by Bighit is reported by Hybe, every single godforsaken penny spent by Bighit is reported by Hybe.


    Bighit maintains independence ONLY SO MUCH AS HYBE ALLOWS IT.


    Do you all realize that the Board of Hybe, BangPD, are all LIABLE to Hybe shareholders for the actions of Bighit execs? Do you really think they would risk their reputations and their fucking millions or even billions in personal wealth by letting Bighit do whatever it wanted without ANY oversight?


    Imagine if Bighit really had as much "freedom" and "independence" as these "tail wagging the dog" folks think they do...imagine if Bighit execs stole billions intended for marketing or music production or whatever and just went to Vegas and gambled it all away. Do you all really think that Hybe could just say "oh well, sorry shareholders, Bighit is "independent" they can do whatever they want with their money, sorry about the 50 percent drop in your stock price, nothing we can do" and just go on as usual. lol. Every single member of the board and the CEO would be slapped with a thousand lawsuits.

    Quote from 0ppar

    bighit is to hybe what google is to alphabet

    Pretty much the best analogy, Google as a company still exists but as a subsidiary of Alphabet now which was created out of corporate restructuring.

    "Are Board Of Directors Personally Liable?

    In general, directors and officers of a corporation are not personally liable for the debts and liabilities of the corporation. This limited liability protection is one of the main advantages of incorporating your business. However, there are a few exceptions to this rule.


    First, if you personally guarantee any of the debts of the corporation, you will be personally liable for those debts. For example, if you sign a personal guarantee when the corporation takes out a loan, you will be required to pay back that loan if the corporation defaults.


    Second, if you engage in illegal or fraudulent activities, you may be held personally liable for those activities, even if you were acting on behalf of the corporation.

    For example, if you embezzle corporate funds or commit fraud, you can be sued personally, even if you were acting in your capacity as a corporate officer.


    Third, if you breach your fiduciary duty to the corporation or its shareholders, you may be held personally liable for any damages resulting from that breach. A fiduciary duty is a legal obligation to act in the best interests of another party. As a director or officer of a corporation, you have a fiduciary duty to act in the best interests of the corporation and its shareholders. If you breach that duty, you may be held liable for any damages resulting from your actions."


    Now imagine as a CEO or Board Member letting your biggest most important subsidiary housing your most important asset (BTS) do whatever the eff they wanted with ZERO oversight and ZERO control.

    The rules vary from country to country about how the Board members are personally liable since certain Board Members are are also independent Directors. Technically the existence of a corporation is built on the premise of separation of ownership and existence of a corporate veil, which is only lifted in exceptional cases, so what you are saying is absolutely wrong regarding personal liability of shareholders. Personal liability of shareholders for actions of the corporation is only called upon exceptionally not regularly or frequently.


    Also you forget the existence of something known as the agency conflict, that is between the management and shareholders.Now chances of that gets lowered in companies when the top management itself are the main shareholders as in the case of Hybe.


    Coming to their main asset that is BTS, you cannot control actions of people beyond a point, they are human beings. Atmost Hybe can try to control them is by takinge ownership of most of their IP, that is trademarks, copyrights etc, but even there we know if BTS or any of its members were to walk out, Hybe can do nothing to stop them and Korean laws will favour BTS and let them take their IP with them. This is why it is in Hybe's best interests to keep giving more shareholding or greater share in profits directly to BTS, which must have been the case in their new contracts which come to force from 2025. BTS members also now have voting power as was revealed last year, something which they did not previously have on the shares gifted to them by Bang, so they will feel some measure of ownership in Hybe too. It is also why companies compensate employees with ESOPs, so that they feel they have a stake in the company's success beyond just the wages they draw.

    Edited once, last by paradis ().

    Like 1
    Quote from elliejr

    Hybe is like a son of bighit.

    It was literally previously known as "Bighit labels" so I don't get it when some armys claim hybe has nothing to do with bighit, in fact bighit is hybe and hybe is bighit. Bang PD was who previously owned bighit, now owns hybe. Every deal hybe does directly impacts bighit first later other labels. Ador is the only label under hybe I'd call independent. After them maybe koz then pledis and others.

    Yall confuse creative independence with legal independence. They aren’t the same

    Quote from TPHF

    It's funny when I searched for info about this again that Google placed an akp thread from back in the day at the top of the search results. Our perceptions really change when time passes by.


    The thread did remind me of the fact that a section of bighit/hybe shareholders such as Korea's National Pension Fund were firmly against bighit becoming independent. Without the independent label investors might be able to pressure hybe into giving them more specific info about BTS related stuff that they do not like to share. Hybe might not have total control over bighit, but more importantly the independence status guards bighit and its artists from the demands and priorities of hybe's shareholders.


    the mentioned thread: Big Hit Music has been successfully hived out as an independent private subsidiary of Hybe despite shareholder opposition

    Good point. If shareholders still had control over bighit, they would have never protested.


    I don’t think bighit is truly independent of Hybe but there’s definitely some sort of legal protection they have obtained against external influence


    I am guessing that’s what Jasmine_Waters is trying to point out but wasn’t clear

    Not this again. People confusing Privately Held Companies with "Independent" Companies. It only means their shares aren't traded publicly in a stock exchange. No company is independent. All companies have an owner and answer to them. In BigHit's case, HYBE.


    FYI, Pledis, Ador, Source, Belift, KOZ, Hybe Japan, Hybe America, are all privately owned too.

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