Table of Contents
“Justin Bieber, then Demi Lovato, and now Ariana Grande What Happening?
“First Justin Bieber, then Demi Lovato, and now Ariana Grande: News about artists leaving Scooter Braun’s management is spreading rapidly, rivaling allegations against a certain former president. Nevertheless, contrary to allegations, there’s limited concrete information about what some people are saying as part of the departure from Scooter Braun’s SB Projects. Confirmation of Lovato’s “amicable” departure has been backed by both sources from her camps.
However,Justin Bieber’s alleged easy exit was strongly denied by multiple sources (though The Pac, who first broke the news, stands by its accuracy). And as for Grande’s exit – which, if true, would be the second time she’s parted ways with him – Scooter Braun’s close sources vehemently denied it, while the singer’s reps didn’t respond to Variety’s requests for comment (though anonymous sources had confirmed the split to Billboard).
The situation has delved into a bizarre abyss of confirmations and contradictions, where one set of sources says one thing and another contradicts it, and it’s most likely that no one is telling the whole truth. Representatives are at odds, and insiders are racing ahead; it’s like trying to get an accurate update on Fight Club or Voldemort.
Still, sources told Variety that Bieber and Grande aren’t leaving the company, but rather shifting their focus away from day-to-day management under Scooter Braun to concentrate on their roles behind-the-scenes as South Korean entertainment moguls with HYBE America’s CEO. BTS, which Braun sold to his management venture Ithaca Holdings for $1.05 billion in 2021.
The source says, “All of Scooter Braun’s clients are under the umbrella of SB Projects, and conversations have been ongoing for months because Scooter is stepping back from day-to-day management as CEO of HYBE America.” “The rumors are being spread based on what people know, but they’re closed. The SB Projects team is still managing both Justin and Ariana as they work on this new structure.”
In this intricate scenario, the fact remains that the renowned hard-charging Braun, who’s been one of the most influential figures in the music business for over a decade, has earned so much negativity – and envy – during his ascent to the top that the situation has snowballed into a sort of psychological mob mentality: schadenfreude is so strong, and enemies want him to fail so badly, that they’ve lost perspective.
The intense desire to see Braun as a good guy and his uncanny ability to spin stories in his favor aren’t helping in these matters; agendas and interests of involved parties – including, apparently, some media outlets – have further complicated the issue. One source says, “He’s cornered,” suggesting that an unpleasant revelation is brewing. “It’s a different world since the pandemic. You can’t act like an ass anymore.”
However, another source has said, “He is stepping out of management – he has been for years. That’s the real story.”
In reality, several sources indicate that Brown has been involved in managing some of his biggest artists’ careers in recent years, overseeing the day-to-day work of ESBE Projects’ long-time officer-chief artists. In fact, the CEO of the $11 billion company may not have time for such attention, even though Bieber and Grande have been relatively inactive in recent years. Meanwhile, his first major step as CEO of HYBE America was the acquisition of Atlanta hip-hop powerhouse Quality Control, which houses Migos, Lil Baby, Lil Yachty, and others, for $320 million.
Furthermore, it is not clear how artists who are “separated” or “no longer” with Brown might appear. Management deals exist in every imaginable system, but there are likely arrangements that should be legally respected for all artists.
Perhaps most surprising is that it took so long for this to happen. Until the age of 40, Brown had acquired many significant milestones in his career, securing his own importance in David Geffen’s dimensions, bringing several artists to superstardom, and, notably, organizing “One Love Manchester” – a charity concert headlined by Grande, Bieber, Coldplay, Katy Perry, Mac Miller and others, after a terrorist bombing outside Grande’s concert killed 22 people in just two weeks.
But his reputation took a hit in 2018 with the controversial acquisition of the rights to Taylor Swift’s first six albums through Big Machine Records Group, which he claimed was done secretly and Brown and some months of back-and-forth with his customers and friends, including Bieber and Kanye West.
Despite his sharp statements against him – and the ruthless attacks of his fans on social media – he successfully managed to sell that catalog to Shamrock Holdings for nearly $300 million, making a good profit, and then sold it to Ithaca Holdings for $1.05 billion. Shortly after the deal closed, he bought a $65 million home in the affluent Brentwood Enclave of Los Angeles.
Brown has often spoken about how much money his artists and executives made on the deal as shareholders in the company. According to HYBE’s corporate filings, Brown’s artists and employees, including Ariana Grande, Justin Bieber, J Balvin, and Demi Lovato, received a total of about $161 million in shares. He and Big Machine Records Group co-founder Scott Borchetta received a large chunk, with Brown getting 462,380 shares (about $86.2 million) and Borchetta receiving 166,537 ($31.1 million); Grande and Bieber received 53,557 shares, less than $11 million each.
Moving forward in the series, J Balvin, who signed with Brown just 18 months ago and left shortly thereafter, received 21,423 shares ($4.1 million), while Lovato – who separated from him last month – received 5,355 shares ($1.06 million).
But since the deal closed, Brown’s two biggest artists, Bieber and Grande, have remained relatively quiet. Indeed, Bieber was forced to cancel a massive global tour in the midst of it after suffering from a rare disease called Ramsay Hunt syndrome, which temporarily paralyzed half of his face; he sold most of the rights to his music, including Hypnosis Songs, for nearly $200 million in a deal last year (likely consolidated by Brown).
He has not released an album or single since “Justice” in March 2021, although he has released some stray tracks in between. Grande has been relatively quiet for a long time, focusing on her role in Universal’s big-screen adaptation of the hit Broadway musical “Wicked,” although it won’t be released in theaters until November 2024. She has not released an album or single since “Positions” in October 2020, although she has left some unreleased tracks in between.
It’s also worth noting in recent drama that Brown has a history of turbulence with many of his customers – in fact, his company’s website lists the “Past and Present” roster, which doesn’t give a hint of who is currently with the company. Grande left him for several months in 2016, but returned; J Balvin signed with him in 2019 but left less than two years later (just weeks after receiving his shares); Kid Laroi and Kanye West both had repeated relationships with his company.
But the company continues to work with new customers: Puerto Rican superstar Ozuna and rapidly rising rapper Kali are its two latest signatures.