Welcome to Music Enterprise Worldwide’s weekly round-up – the place we make sure that you caught the 5 greatest 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 scale back their touring prices.
This week started with huge information out of France: Consider founder and CEO Denis Ladegaillerie, together with TCV and Swedish non-public fairness agency EQT are making a bid value EUR €1.523 billion (USD $1.64 billion) to take Consider non-public.
The deal may very well be full by this summer season.
Elsewhere,Spotify‘s annual report filed with the SEC reveals that three main recording firms (Common, Sony, and Warner) plus indie label consultant Merlin noticed their joint market share on Spotify fall under the 75% mark for the primary time.
In the meantime, information from Sony and Common this week strengthened the commentary that Dubai is changing into a significant music trade hub.
Common confirmed that it has inked a strategic partnership with Dubai International Music Metropolis (DGMC) to construct what known as “the Center East’s first-ever Music Metropolis“. And Sony Music Publishing introduced it’s increasing its MENA presence with the opening of a brand new workplace in Dubai, to be headed by newly-appointed Managing Director Dounia Chaaban.
On Wenesday (February 14), Sony Corp launched its monetary outcomes for calendar This autumn 2023, exhibiting that its operations throughout recorded music and music publishing introduced in USD $2.52 billion within the quarter, up 14.0% YoY.
Lastly, Irving Azoff‘s Iconic Artists Group has acquired Rod Stewart‘s share of the legendary artist’s publishing catalog and recorded music, for a reported USD $100 million. Iconic additionally raised $1 billion for music acquisitions, by way of debt financing and a partnership with HPS Funding Companions.
Will Consider be privately owned by the summer season?
That’s the hope of a brand new consortium, which on February 12 introduced a takeover bid value EUR €1.523 billion (USD $1.64 billion) for 100% of the corporate’s shares.
The consortium brings collectively three events: Current Consider shareholders TCV and Denis Ladegaillerie (Consider’s founder, Chairman & CEO), plus EQT – the Swedish non-public fairness agency that has beforehand invested in music/leisure firms comparable to Epidemic Sound and United Expertise Company.
Collectively, Ladegaillerie plus the EQT X fund and funds managed by TCV have proposed a non-public takeover of Consider valued at €15 per share, representing a premium of +21% on Consider’s closing share worth on the Paris Euronext on Friday (February 9).
The consortium has already secured agreements to amass 71.92% of Consider from current shareholders…
There’s an fascinating shift going down within the energy dynamic between ‘main’ music rightsholders and DIY aggregators on the world’s largest subscription music streaming service, Spotify.
In line with Spotify’s annual report for 2023, filed with SEC, the joint market share of music represented by the three main report firms (Common, Sony, Warner), plus unbiased label licensing consultant Merlin, fell under three-quarters (74%) on Spotify for the primary time in 2023.
Conversely, the worldwide market share of recordings uploaded by DIY aggregators and indie labels with direct Spotify offers rose to an all-time excessive of 26% in the identical yr.
Because of this UMG, WMG, SME, and Merlin’s joint market share on Spotify fell for the sixth consecutive yr in 2023.
In 2022, UMG, WMG, SME, and Merlin’s joint market share was 75%. Again in 2017, it was 87%…
Sony Music Publishing is increasing its presence within the Center East and North Africa (MENA) with the launch of a brand new workplace in Dubai, which shall be led by newly-appointed Managing Director Dounia Chaaban.
SMP, the world’s largest music writer, is increasing into MENA at a time of appreciable progress for the area’s music enterprise.
In line with IFPI’s newest International Music Report, the MENA area’s recorded music market grew 23.8% YoY in 2022 (the third-fastest globally that yr), and represented the very best share for streaming of any area globally, at 95.5%.
The MENA area was additionally the fastest-growing music area on the earth, in proportion phrases, in 2021, rising by 35% YoY, in accordance with IFPI.
On February 12, Common Music Group signaled its personal vote of confidence within the area through a strategic partnership with a UAE-based entity known as DGMC (Dubai International Music Metropolis) to construct what they describe as “the Center East’s first-ever Music Metropolis”…
Sony Music Group delivered sturdy double-digit progress within the closing quarter of 2023.
Sony’s international music rights operation – throughout recorded music and music publishing – generated USD $2.52 billion within the three months to finish of December.
That’s in accordance with MBW’s calculations based mostly on Sony Group Corp’s calendar This autumn 2023 (fiscal Q3 2023) outcomes, as introduced by the Japanese agency on February 14.
The $2.52 billion determine was up 14.0% YoY (vs. calendar This autumn 2022) at US dollar-converted fixed forex.
In financial phrases, Sony’s general music rights operation (recorded music plus music publishing) generated roughly $309 million extra in calendar This autumn 2023 than within the prior-year quarter…
Irving Azoff’s Iconic Artists Group has secured a strategic funding from HPS Funding Companions (HPS), an funding agency with $107 billion in belongings underneath administration.
The funding from HPS, along with senior debt financing from third events, offers Iconic with entry to $1 billion of capital.
Moreover, Iconic has additionally finalized what it calls a wide-ranging cross-media partnership with legendary artist Rod Stewart to “purchase, develop, and develop his six-decade musical legacy to new generations of followers”.
Stewart is a two-time inductee into the Rock & Roll Corridor of Fame and one in all music’s best-selling artists. Iconic says the “landmark association encompasses Stewart’s songs spanning his monumental solo profession, in addition to tenure in two iconic teams, the Faces and Jeff Beck Group”.
Citing individuals aware of the matter, The Wall Road Journal experiences that Stewart offered his pursuits in his ‘publishing catalog and recorded music, in addition to some title and likeness rights’ for round $100 million…
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and scale back their touring prices.Music Enterprise Worldwide
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