The Atlanta-based hip-Hop label Quality Control was acquired by a South Korean music company in a deal worth a reported $300 million. Quality Control is the label for City Girls, Lil Baby and Migos.
The South Korean music company HYBE acquired the label and will reportedly provide $50 million in stock to the label’s founders Pierre P Thomas and Kevin “Coach K” Lee. HYBE will also pay $250 million for Quality Control.
HYBE represents talents such as Lee Hyun, the pop-group BTS and Tomorrow X Together. The music company formally known as Big Hit Entertainment is also a global talent agency, music label, promoter, and production company. The deal was headed by the CEO of HYBE America, Scooter Braun and Bang Si-Hyuk, the company’s chairman. The acquisition will transfer control of the hip-hop label to HYBE. Lee and Thomas will remain in charge of the label.
Thomas released a statement announcing the deal and said that partnering with HYBE would take Quality Control global.
“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,” wrote Thomas. “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.”
Lee also released a statement and said he was confident in the deal.
“P and I are ecstatic about this partnership with Scooter and HYBE and are confident they can get us to our global ambitions we’ve had in our scope since the beginning of the company, as nothing means more than our artists impacting worldwide,” wrote Lee. “Over many years, Scooter and I have cultivated real trust and a common way of looking at the world and culture.”
Thomas also replied to a story shared by The Shade Room where fans implied that QC sold out. “I don’t usually post long notes but I recorded some thoughts tonight. There’s no value in separation. There is so much more value when people are working together and not hating and taking eachother down,” he wrote.
“Especially when you come from nothing. Stop thinking people are selling OUT. Instead see people are selling IN and see that you are building something to create more-for everybody. Black entrepreneurs are not getting these opportunities on a regular basis and they should be,” he continued. “Let’s stay inspired and celebrate the blessings and leveling up and breaking of barriers. Ready For The Next Chapter.”
Braun also released a statement announcing the deal and said he remembered talking with Lee 20 years earlier about their ambition and dreams.
“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.”
Hybe CEO Jiwon Park also released a statement following the acquisition.
“Based on hip-hop,” wrote Park. “QC has been making a strong presence in the American music scene. With our shared vision, I have high hopes in what we can operate and achieve together.”
HYBE America is also the home to Ariana Grande, Demi Lovato, Tim McGraw, Justin Bieber and Kid Laroi.