Welcome to Music Enterprise Worldwide’s weekly round-up – the place we make sure that 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 revenue and cut back their touring prices.
This week introduced huge information from Common Music Group‘s frontline label teams within the US, as Interscope Geffen A&M and Capitol Music Group have been consolidated beneath the brand new identify of Interscope Capitol Labels Group, headed up by Chairman and CEO John Janick.
Earlier within the week, MBW reported on a “thriller” purchaser serious about making a bid for France-headquartered digital music firm Consider. The thriller didn’t final lengthy, as the possible purchaser was quickly revealed to be none apart from Warner Music Group.
Additionally this week, music royalties buying and selling platform JKBX introduced that it has acquired qualification from the US Securities and Alternate 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 by way of JKBX.com.
In the meantime, in line with an investor replace 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 Ok-pop big HYBE, which held an earnings name late final month, during which CEO Jiwon Park‘s opening remarks turned out to have been delivered by an AI-powered vocal clone.
Huge information on Thursday (March 7) from Common Music Group‘s frontline label teams on the earth’s largest music market.
Interscope Geffen A&M and Capitol Music Group are actually formally consolidated beneath the brand new identify of Interscope Capitol Labels Group (ICLG).
ICLG is comprised of all artists, labels, and personnel inside the firms previously named Interscope Geffen A&M and Capitol Music Group. Interscope Capitol Labels Group is headed up by Chairman & CEO John Janick.
Beneath the brand new mannequin, Janick and Republic Information‘ 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 Notice, Capitol, Geffen, Interscope, Motown, Precedence and Verve. In the meantime, in New York, Lipman will take duty for Def Jam, Island, Mercury and Republic…
Earlier this week, MBW instructed you that there was a “thriller” firm that has begun a dialog with Consider‘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 Consider’s board on February 21 to “to provoke discussions with respect to a possible mixture of Consider with WMG”.
Final Tuesday (February 27), WMG then instructed Consider’s board that it thought it may worth Consider at €17 per share primarily based on presently accessible public info. That supply values Consider at round EUR €1.7263 billion (USD $1.872 billion).
Crucially, it could be roughly 13% larger than a €15-per-share supply that was made for Consider final month by a consortium that brings collectively Swedish funding agency EQT, plus current Consider 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 could 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 ‘unbiased valuer’.
Citrin Cooperman has naturally used its personal formulation to judge HSF’s belongings throughout this era – together with a much-debated ‘low cost charge’ of 8.5%. (Some felt that as rates of interest rose previously two years, that low cost charge ought to have been larger, which might have diminished 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 evaluation” 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 brought about fairly a buzz within the music enterprise over the previous yr. Now music royalties buying and selling platform JKBX is formally “open for enterprise”.
JKBX has introduced that it has acquired qualification from the US Securities and Alternate 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 by way of JKBX.com.
The JKBX platform soft-launched final yr, however whereas awaiting SEC qualification, its customers may solely ‘reserve’ (relatively than outright purchase) these royalty shares.
From Wednesday (March 6), those self same customers should buy royalty stakes in hits written and/or recorded by varied celebrity songwriters and artists starting from Beyoncé to Ryan Tedder, Timbaland, the Jonas Brothers, Camila Cabello, Main Lazer, OneRepublic, Ed Sheeran, Louis Bell and plenty of extra…
South Korea-based leisure big 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 Gained (USD $1.66bn) in 2023, led by what it mentioned on its This fall earnings name was “explosive progress in [its] album and live performance companies”.
That, although, wasn’t probably the most stunning factor that occurred on HYBE’s dialogue with analysts that day.
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On the finish of Park’s opening remarks, previous to the Q&A session the place he and CFO Kyung-Jun Lee have been grilled by traders in regards to the firm’s efficiency in 2023, got here a word from the decision operator:
“At this time’s earnings presentation was not delivered by CEO Jiwon Park himself, however via TTS [text-to-speech], an AI voice synthesis expertise by Supertone…”
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.Music Enterprise Worldwide
