Maal

The deal was worth $300 million in cash and stock.

That's very important to note that.

According to high regulatory filings, the company paid $250 million in cash...

and issued a total of $50 million in stocks to Quality Control's two co-founders, CEO Kevin Coach K. Lee and COO Pierre P. Thomas.

Founded in 2013, Quality Control will fall under the Hybe America umbrella and the leadership of its CEO, Scooter Braun.

Hybe America encapsulates SB Projects, as well as Big Machine Labor Group, which Hybe attained through its 2021 acquisition of Braun's Ithaca Holdings.

I think that this is a smart move.

I think, obviously, Coach K and P are smart.

They're good at what they do.

They felt like this was the best move for them.

$250 million in cash.

I'm guessing that that gives you room to do some other things.

A little bit.

A little bit.

You can do a few things with that.

So, I mean, listen, they saw this as an opportunity to expand their brand.

expand their reach, do other things in partnership with HYBE and things that they're already doing.

They're heavy into the K-pop world.

Their reach is a lot further and a lot bigger than QC is at the moment.

So, listen, Coach K and P felt like this was the time to make this move, make this deal happen.