BTS label Big Hit changing its name to HYBE

SEOUL, March 22 (UPI) -- The music label that manages K-pop group BTS said it will change its name from Big Hit Entertainment to HYBE.

Under the new brand -- which will be finalized at its shareholders' meeting on March 30 -- HYBE plans to focus on three key businesses: labels, solutions and a platform used for connecting artists with fans.

The management company's founding CEO, Bang Si-hyuk, said the new name reflects the various areas of the company, which has changed a lot since it was founded in 2013.

"This marks a fresh start with a new corporate name, HYBE, together with rebranded space and organizational structure. However, the core of what we perform will remain the same," Bang said Friday in an online conference. "We will keep believing in the power of music, innovate related businesses and share good influence, as well as change lives."

Observers say the change has something to do with the company's diversifying portfolio.

"Thus far, Big Hit has been recognized as an entertainment company, which is single-handedly underpinned by BTS. Now, the firm tries to become a platform company by changing its name," HMC Investment & Securities analyst Kim Hyun-yong told UPI News Korea.

"The company is expected to encourage more global artists to take advantage of its platform Weverse."

Weverse is Big Hit's mobile app and web platform, which specializes in hosting multimedia content and musician-to-fan communications.

Big Hit made $126 million in operating profit in 2020, up 44 percent from a year prior. Its sales also jumped 36 percent year-on-year, topping $700 million.

The share price of Big Hit once fell below $125 late last year, but it bounced back to fluctuate in the neighborhood of roughly $200 this year.