SEOUL, May 25 (Yonhap) -- Big Hit Entertainment, the music label of K-pop super band BTS, said Monday it has acquired Pledis Entertainment that manages NU'EST and Seventeen, as part of efforts to diversify its business portfolio.
"We've become the largest stockholder of Pledis Entertainment," Big Hit said in a statement. "With Pledis joining the group, Big Hit's multi-label system has secured the strong lineup of artists."
Pledis was established in 2010 by Han Sung-soo, who worked as a manager of K-pop diva BoA under South Korea's biggest K-pop music label, SM Entertainment. It has popular K-pop bands, including NU'EST and Seventeen, under its wing.
Big Hit said Pledis will maintain its independence even after the acquisition, but its artists will be supported by Big Hit's management system.
Its Pledis takeover has been in the media spotlight as the company has been expanding its portfolio of contract artists amid rumors of Big Hit going public and holding an IPO later this year.
In 2019, Big Hit debuted Tomorrow X Together, also known as TXT, as the music label's second-ever boy band after BTS since the company's establishment in 2005. It established a joint venture with entertainment giant CJ ENM to foster new K-pop groups.
It also took over a medium-sized talent agency, Source Music, which is home to popular girl band GFriend, and multi-platform music game company Superb last year.
Love, quantified: K-pop super fans keen on competitive goals, numeric milestones
(News Focus) Amid growing IPO rumblings, Big Hit shifts away from heavy reliance on BTS
BTS cements presence in world music scene with 4th Billboard win
'Parasite' jumps to No. 4 at North American box office after Oscar wins
Fake news another hurdle in tackling coronavirus in S. Korea