Welcome to Music Business Worldwide’s weekly round-up – the place we be certain you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their earnings and cut back their touring prices.
This week introduced massive information from Universal Music Group‘s frontline label teams within the US, as Interscope Geffen A&M and Capitol Music Group had been consolidated beneath the brand new title of Interscope Capitol Labels Group, headed up by Chairman and CEO John Janick.
Earlier within the week, MBW reported on a “thriller” purchaser all in favour of making a bid for France-headquartered digital music firm Believe. The thriller didn’t final lengthy, as the potential purchaser was quickly revealed to be none aside from Warner Music Group.
Additionally this week, track royalties buying and selling platform JKBX introduced that it has received qualification from the US Securities and Change Fee (SEC) for its belongings. The outcome: as of this week, traders – together with customers aka ‘retail traders’ – can legally buy shares within the royalty streams of hits through JKBX.com.
In the meantime, in line with an investor update from Hipgnosis Songs Fund‘s board, US-based music M&A consultants Shot Tower Capital estimates the honest worth of HSF’s portfolio (as of March 1, 2024) at between USD $1.80 billion and $2.06 billion (or between $1.74 billion and $2.00 billion after contingent catalog bonuses are deducted).
In keeping with the HSF board, the midpoint of Shot Tower’s valuation of HSF is $1.93 billion, which represents a discount in worth of 26.3% vs. the $2.62 billion valuation from Citrin Cooperman (as of September 30).
Lastly, some sign-of-the-times information out of Okay-pop large HYBE, which held an earnings name late final month, through which CEO Jiwon Park‘s opening remarks turned out to have been delivered by an AI-powered vocal clone.
Massive information on Thursday (March 7) from Common Music Group‘s frontline label teams on this planet’s largest music market.
Interscope Geffen A&M and Capitol Music Group at the moment are formally consolidated beneath the brand new title of Interscope Capitol Labels Group (ICLG).
ICLG is comprised of all artists, labels, and personnel throughout the firms previously named Interscope Geffen A&M and Capitol Music Group. Interscope Capitol Labels Group is headed up by Chairman & CEO John Janick.
Below the brand new mannequin, Janick and Republic Records‘ Monte Lipman are growing the variety of labels beneath their command on the West Coast and East Coast, respectively.
In Los Angeles, Janick will present help and management to Blue Be aware, Capitol, Geffen, Interscope, Motown, Precedence and Verve. In the meantime, in New York, Lipman will take accountability for Def Jam, Island, Mercury and Republic…
Earlier this week, MBW informed you that there was a “thriller” firm that has begun a dialog with Imagine‘s board over a possible potential bid value $1.8 billion for the French firm.
On Thursday (March 7), mentioned firm revealed itself. It’s Warner Music Group.
In an investor launch, WMG confirmed that it approached Imagine’s board on February 21 to “to provoke discussions with respect to a possible mixture of Imagine with WMG”.
Final Tuesday (February 27), WMG then informed Imagine’s board that it thought it might worth Imagine at €17 per share primarily based on presently obtainable public data. That provide values Imagine at round EUR €1.7263 billion (USD $1.872 billion).
Crucially, it will be roughly 13% larger than a €15-per-share supply that was made for Imagine final month by a consortium that brings collectively Swedish funding agency EQT, plus current Imagine investor TCV, and the music firm’s founder and CEO, Denis Ladegaillerie…
All of us knew the day was coming when Hipgnosis Songs Fund‘s portfolio can be re-valued at a smaller greenback quantity than it had beforehand. What we didn’t know was fairly how dramatic a change that might be.
UK-listed HSF has, since floating in 2018, employed US-based Citrin Cooperman/Massarsky Consulting to be its ‘impartial valuer’.
Citrin Cooperman has naturally used its personal formulation to judge HSF’s belongings throughout this era – together with a much-debated ‘low cost price’ of 8.5%. (Some felt that as rates of interest rose prior to now two years, that low cost price ought to have been larger, which might have decreased the scale of HSF’s valuation.)
Citrin Cooperman’s most up-to-date valuation of Hipgnosis Songs Fund concluded that the worth of HSF’s portfolio was USD $2.62 billion.
Since then, Citrin Cooperman and HSF have parted methods – whereas HSF’s board has commissioned a “strategic evaluate” of the corporate by revered US-based music M&A consultants, Shot Tower Capital.
On Monday (March 4), Shot Tower gave its personal view on what HSF’s portfolio is value within the trendy market…. and it’s a darn sight extra conservative than Citrin Cooperman’s…
It’s prompted fairly a buzz within the music enterprise over the previous 12 months. Now track royalties buying and selling platform JKBX is formally “open for enterprise”.
JKBX has introduced that it has acquired qualification from the US Securities and Change Fee (SEC) for its belongings. The outcome: as of this week, traders – together with customers aka ‘retail traders’ – can legally buy shares within the royalty streams of hits through JKBX.com.
The JKBX platform soft-launched final 12 months, however whereas awaiting SEC qualification, its customers might solely ‘reserve’ (fairly than outright purchase) these royalty shares.
From Wednesday (March 6), those self same customers should purchase royalty stakes in hits written and/or recorded by numerous famous person songwriters and artists starting from Beyoncé to Ryan Tedder, Timbaland, the Jonas Brothers, Camila Cabello, Main Lazer, OneRepublic, Ed Sheeran, Louis Bell and lots of extra…
South Korea-based leisure large HYBE revealed its This fall and FY 2023 monetary outcomes on February 26.
The agency revealed that it surpassed annual revenues of 2 trillion South Korea Received (USD $1.66bn) in 2023, led by what it mentioned on its This fall earnings name was “explosive development in [its] album and live performance companies”.
That, although, wasn’t essentially the most shocking factor that occurred on HYBE’s dialogue with analysts that day.
On the finish of Park’s opening remarks, previous to the Q&A session the place he and CFO Kyung-Jun Lee had been grilled by traders in regards to the firm’s efficiency in 2023, got here a word from the decision operator:
“Immediately’s earnings presentation was not delivered by CEO Jiwon Park himself, however by way of TTS [text-to-speech], an AI voice synthesis expertise by Supertone…”
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.Music Enterprise Worldwide
