Welcome to Music Enterprise Worldwide’s weekly round-up – the place we ensure 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 maximise their earnings and scale back their touring prices.
Patrick Boulos, Common Music Group‘s CEO within the MENA Area, famous this week that the Center East and North Africa “is likely one of the quickest rising music markets on the planet, representing untapped potential and alternative”.
The exec’s feedback arrived alongside the information on Wednesday (August 30) that Common has acquired a outstanding UAE-based music firm referred to as Chabaka Music, which makes a speciality of digital distribution, advertising and marketing, publishing, and artist providers throughout the Center East and North Africa.
This week, MBW requested why Common has swooped for Chabaka now – and the way ferocious can we count on the music biz’s industrial exercise within the MENA area to turn into within the months and years forward of us?
Additionally this week, Bloomberg reported that François-Henri Pinault, a French billionaire whose household is behind the Kering group, is nearing a $7 billion deal to purchase a majority stake in Los Angeles-based expertise company Inventive Artists Company (CAA).
Bloomberg additionally reported that Singapore authorities funding arm Temasek Holdings is trying to increase its personal stake in CAA by shopping for out the shares held by China’s CMC Capital. Temasek secured a minority stake in CAA in September 2017 and has additionally beforehand invested in SoundCloud.
In the meantime, BMG father or mother, Bertelsmann, reported that the Berlin-headquartered music firm generated EUR €414 million (USD $447m) within the six months to finish of June this yr.
Plus, gamma expanded in Africa and the Center East with the addition of two senior government appointments, whereas ASCAP took goal at rival BMI‘s newly-for-profit standing, along with its sale talks with personal fairness…
Right here’s what occurred this week…
1) UNIVERSAL MUSIC JUST SWOOPED FOR A PROMINENT COMPANY IN UAE. THE RACE IS ON FOR THE MAJORS TO BUILD MARKET POWER IN MENA.
The sound of alternative for the document enterprise throughout the Center East and North Africa (MENA) is getting louder.
The most recent proof: Common Music Group’s announcement on Wednesday (August 30) that it’s acquired Chabaka Music, an organization primarily based within the United Arab Emirates and based in 2013 by brothers Ala’a and Tarek Makki.
Chabaka makes a speciality of digital distribution, advertising and marketing, publishing, and artist providers throughout the MENA area. It’ll now turn into a part of UMG’s Virgin Music Group.
The deal marks UMG’s newest strategic positioning within the MENA recorded music market, following its launch in 2021 of Common Arabic Music (UAM) in tandem with Republic Data and music biz entrepreneur, Wassim ‘SAL’ Slaiby.
The industrial potential of MENA for music rightsholders is obvious to see.
Based on stats printed by IFPI, the Center East and North Africa was the world’s fastest-growing market in 2021, and its third-fastest-growing in 2022.
Final yr, MENA’s recorded music market grew 23.8% YoY, and represented the very best share for streaming of any area globally, at 95.5%…
2) BMG REVENUES UP 11.5% YOY IN H1 2023, HITTING $447M, AS OPERATING EBITDA GROWS 22.6%
BMG noticed its international revenues develop by double digits – 11.5% – year-on-year within the first half of 2023.
Based on a brand new interim report from BMG father or mother, Bertelsmann, the Berlin-headquartered music firm generated EUR €414 million (USD $447m) within the six months to finish of June this yr, up on the EUR €371 million it generated within the equal prior-year interval.
BMG’s revenue additionally grew considerably. In H1 2023, BMG’s working EBITDA hit €90 million ($97m), up 22.6% YoY…
3) BILLIONAIRE FRANÇOIS-HENRI PINAULT NEARS $7BN DEAL FOR CAA (REPORT)
François-Henri Pinault, a French billionaire whose household is behind the Kering group, is nearing a $7 billion deal to purchase a majority stake in Los Angeles-based Inventive Artists Company (CAA).
That’s based on a Bloomberg report from Wednesday (August 30), which, citing folks accustomed to the matter, says that Pinault is trying to purchase the bulk stake within the expertise company held by personal fairness agency TPG Capital.
The information outlet first reported on the talks for a deal in July. However sources on the time stated that talks for a majority stake in TPG-backed CAA ‘might nonetheless finish with out an settlement’.
TPG acquired a 35% stake in CAA in 2010 and subsequently elevated its holding to 53% in 2014…
4) ASCAP STICKS THE BOOT INTO BMI OVER FOR-PROFIT SWITCH AND SALE TALKS: ‘WE PAY SONGWRITERS, NOT SHAREHOLDERS.’
One senior publishing government texted MBW over the weekend merely calling it “genius”. A number one expertise supervisor, in the meantime, advised us he thought it “cheesy and infantile”, and “an affordable look”.
Whichever camp you slot in, you possibly can’t deny that ASCAP’s new social media marketing campaign – aiming its weapons at historic rival BMI – is getting the music trade speaking.
MBW broke the information final Wednesday (August 23) that NYC-based personal fairness agency New Mountain Capital (NMC) was in superior talks to amass BMI.
Some trade sources recommend that New Mountain and BMI have agreed a transaction in precept for roughly USD $1.7 billion. Different sources recommend, nonetheless, that it’s not but a executed deal.
Information of BMI’s talks with NMC information arrived 10 months after BMI revealed that it was scrapping its long-held, not-for-profit enterprise mannequin (beneath which it had operated since being based in 1939) and altering to a for-profit mannequin.
Over the weekend (August 26 and 27) and the 2 days prior, ASCAP posted quite a few messages on Instagram and Twitter (X) that clearly took goal at BMI’s newly-for-profit standing, along with its sale talks with personal fairness…
5) GAMMA EXPANDS IN AFRICA AND THE MIDDLE EAST WITH ADDITION OF TWO SENIOR EXECUTIVE APPOINTMENTS
Gamma, the billion-dollar-backed firm launched by Larry Jackson in March, says that it has expanded “its dedication to Africa and the Center East” with the addition of two senior music trade executives.
The appointments embrace legendary Nigerian songwriter and recording artist Larry Gaaga becoming a member of as Vice President/Basic Supervisor of Africa, and revered Arab artist and DJ, Dany Neville taking the function of Vice President, A&R, Center East.
Gaaga can be primarily based in Lagos and Neville in Dubai…
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