Quality Control Acquired By HYBE America for $320 Million
Quality Control is making a major move.
The Atlanta-based entertainment company, founded by CEO Pierre “P” Thomas and COO Kevin “Coach K” Lee, has been acquired by HYBE America in a deal valued at $320 million in stock and cash, according to Variety.
QC’s portfolio includes sports, film, television, and music with its popular Quality Control Music label, which is home to Migos, Lil Baby, Lil Yachty, and City Girls, among others.
Per the report, the acquisition is part of HYBE’s mission to “build a global entertainment giant rooted in music with interests in other mediums and platforms related to entertainment, lifestyle and culture.” QC will continue its affiliation with Universal Music Group for its music roster.
HYBE America is a South Korean entertainment company whose U.S. portfolio includes SB Projects, management home to Justin Bieber, Ariana Grande, and Quavo, as well as Big Machine Label Group, with country artists Tim McGraw, Thomas Rhett, Rascal Flatts, and Sheryl Crow. HYBE’s current market cap stands at $6.6 billion.
The deal was brokered by HYBE’s CEO Scooter Braun, whose relationship with Coach and P dates back to the early 2000s when Braun was living in Atlanta.
“I am so proud and honored to have Coach and P join Bang and I as our partners,” said Braun. “QC is one of the most significant independent labels in the world, working with incredible artists who are, and remain to be, the voices of culture. I’ll never forget riding around Atlanta over 20 years ago with Coach discussing our dreams and ambitions and how we said ‘If they let us in the game, we are never going to give it back.’ Now, all these years later, we are joining forces to make these dreams a reality.”
In a statement, P added, “HYBE are perfect partners for Quality Control as we come together to take our story and work global. All of HYBE’s leaders are entrepreneurs with phenomenal combined history finding talent and taking it to the highest levels. Taking QC worldwide requires key partners like this who understand building something from the bottom and aiming sky high. It matters to us greatly their grasp of culture and acutely seeing what QC has built and the limitless path of where it can go.”
“Over many years Scooter and I have cultivated real trust and a common way of looking at the world and culture. An added bonus of this partnership is the fact that both QC and HYBE have existing relationships with the UMG family and that will create an easy flow that will benefit the artists. The artists of QC are our focus and their best interests will be incredibly supported with this partnership.”
Founded in 2013 by Coach K, QC is one the biggest independent companies in hip-hop, with a catalog that’s amassed over 37 billion streams. In 2019, they launched Quality Control Sports, which manages basketball, football, and baseball players.