Avex Entertainment Inc. invests in Hypebeast Ltd. as a long-term strategic partner and shareholder

Hypebeast Ltd. (Hypebeast, 0150.HK) is pleased to announce Avex Entertainment Inc. (AEI, 07860.TKO) as a strategic long-term partner and shareholder, in a move to scale up and diversify its business in Japan and beyond.

Avex Inc., established in 1988, is the largest comprehensive entertainment company in Japan, with business spanning from music, artist and talent management, live event, merchandising, fan club, anime, game, to music/video streaming subscription services. The company has the Tokyo head office and local offices across Japan, with oversea subsidiaries in Los Angeles, London, Beijing, Singapore, Taipei, and Hong Kong.

Through the partnership, Hypebeast aims to further develop its business segments in Japan including digital media Hypebeast, agency Hypemaker, and e-commerce HBX with the support of AEIʼs strong domestic connections, local business, and operational expertise, wide influencer network, strength in content distribution, music label and talent management to boost Hypebeast Japan into the next phase of growth and further Hypebeastʼs penetration in the Japan market. To cement the partnership, AEI will make an initial investment in shares of Hypebeast Ltd. at a premium to the current market price.

Combining Hypebeastʼs presence as a leading curator in global youth culture with AEIʼs powerful influence in Japan and in the global entertainment industry, the collaboration will make way for further opportunities for both companies to unlock untapped market potential and grow as powerful vanguards of the global cultural industry.

Intended strategic business collaborations:

Digital Media
Hypebeast and Avex will partner on resource and knowledge sharing with respect to digital advertising, content strategy, marketing and promotion across Hypebeastʼs digital media platforms (Hypebeast) and creative services agency business (Hypemaker) in Japan.

Music Label
With Avexʼs plan to globalize its music label, the company will partner with Hypebeast on sourcing and developing global emerging talent.

E-Commerce
Hypebeastʼs retail business, HBX, will utilize Avexʼs warehouse and logistics infrastructure and strong local business experience in growing its Japanese market.

In addition, Avex and Hypebeast/HBX will co-develop apparel products and global brand collaborations by leveraging Avexʼs roster of renowned artists, titles and animations, to coincide with Hypebeastʼs development of an in-house product and merchandise platform.

Events
Combining Avexʼs valuable experience in live event production and Hypebeastʼs extensive global network, Avex and Hypebeast will jointly produce large scale fashion, music, and cultural events in Japan to bridge global and Japanese culture and expand Japanʼs fan base for both brands.

Agency
Avex will co-develop Hypebeastʼs agency business (Hypemaker) by highlighting Hypebeastʼs global presence and network, and creative capabilities externally to acquire new clients.

“I love Japanese culture and fashion, and have always believed in its vast business potential, and this partnership will be a big push with respect to our presence in its local market. I am looking forward to the transformation ahead and to taking our business to the next level alongside Avex,” says Kevin Ma, Chief Executive Officer at Hypebeast Ltd.

“It is our immense pleasure to partner with Hypebeast, a global media company. With Hypebeastʼs cooperation, we believe that we will be able to further deliver attractive content and culture from Japan to the global market. Going forward, we aim to work with Hypebeast in various business endeavours.” Takeya Ino, the Director of Avex Entertainment Inc. said.

Media inquiries: media@hypebeast.com
Investors relations: investors@hypebeast.com