Big Hit Entertainment may be in talks to acquire Zico's KOZ Entertainment label.
According to a report by All Kpop, industry insiders are hinting that Big Hit's expansion plans include the acquisition of the rapper's label.
It can be recalled that Zico established the label last year after he quit being a member of BLOCK B and ventured out as a solo artist.
Over the past year, Zico's career thrived with one hit song after another. He also collaborated with other talented artists like Super Junior, Kang Daniel, and, most recently, Rain.
In a previous interview, Zico admitted that there were challenges in running his label, but he would not give it up for the world. The rapper is currently on hiatus to fulfill his mandatory service. Apart from Zico, singer-songwriter Dvwn is also signed under the label.
In response to reports, Big Hit Entertainment said that they are exploring several opportunities, but nothing has been decided yet.
Last year, Big Hit Entertainment acquired several music labels as subsidiaries, such the GFRIEND's label Source Music. They also acquired Pledis Entertainment, home of popular Kpop idol groups like SEVENTEEN and NU'EST.
As part of its expansion, Big Hit is preparing for the opening of its initial public offering (IPO), to make 7.1 million shares of the company available in the stock market. The move is expected to generate up to 962.6 billion won for the label. It will also bring the company's value 4.8 trillion won.
Big Hit founder and CEO Bang Si Hyuk also split 500,000 shares among the seven members of BTS, effectively making them shareholders and part owners of the company they helped grow. Each member will receive 68,385 shares, which is valued at a maximum of over 7 million USD, Reuters reported.
The move is reportedly part of Big Hit's strategy to inspire long term cooperation with its main artists. With the setup, BTS members will own over 30 percent of Big Hit Entertainment and 6.7 percent of the company's shares.
Big Hit earned 49.7 billion won (41.9 million USD) in profit for the first half of 2020, which could be attributed to BTS' successful comeback with "Map of the Soul: 7" last February. The group also broke the record for the most viewed live stream concert as their Bang Bang Con: The Live posted 700,000 fans who paid approximately 25 USD per ticket, according to Guinness World Records.
