Direct Management ’s Martin Kirkup has written in to take issue with our recent item regarding Selena Gomez and Katy Perry (see below). “Your story is false in all respects,” Kirkup asserts, “and since other outlets have repeated your story focusing on an allegation which is very damaging to Katy Perry—that she is responsible for another artist getting fired, which is categorically untrue—we believe HITS has a responsibility to disavow this malicious rumor as quickly as possible.”
You don't know the reasoning behind it. It's highly unlikely it's due to Katy feeling threatened, and more like she knows something and doesn't want the management team wasting their time managing Selena when the rewards are very little. From my understanding, Katy is using the same management for her new signings.