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 scale back their touring prices.
This week introduced massive information from Common Music Group‘s frontline label teams within the US, as Interscope Geffen A&M and Capitol Music Group have been consolidated below 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 eager 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 aside from Warner Music Group.
Additionally this week, track royalties buying and selling platform JKBX introduced that it has acquired qualification from the US Securities and Alternate Fee (SEC) for its belongings. The consequence: as of this week, buyers – together with customers aka ‘retail buyers’ – can legally buy shares within the royalty streams of hits by way of JKBX.com.
In the meantime, in response to an investor replace from Hipgnosis Songs Fund‘s board, US-based music M&A consultants Shot Tower Capital estimates the truthful 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 line 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, wherein CEO Jiwon Park‘s opening remarks turned out to have been delivered by an AI-powered vocal clone.
Large information on Thursday (March 7) from Common Music Group‘s frontline label teams on the planet’s largest music market.
Interscope Geffen A&M and Capitol Music Group are actually formally consolidated below the brand new identify of Interscope Capitol Labels Group (ICLG).
ICLG is comprised of all artists, labels, and personnel inside the corporations 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 Data‘ Monte Lipman are rising the variety of labels below their command on the West Coast and East Coast, respectively.
In Los Angeles, Janick will present assist and management to Blue Observe, 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 informed 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 informed Consider’s board that it thought it may worth Consider at €17 per share based mostly on presently obtainable public data. That supply values Consider at round EUR €1.7263 billion (USD $1.872 billion).
Crucially, it could be roughly 13% increased than a €15-per-share provide that was made for Consider final month by a consortium that brings collectively Swedish funding agency EQT, plus present 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 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 will 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 guage HSF’s belongings throughout this era – together with a much-debated ‘low cost fee’ of 8.5%. (Some felt that as rates of interest rose up to now two years, that low cost fee ought to have been increased, which might have diminished the dimensions 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 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 Alternate Fee (SEC) for its belongings. The consequence: as of this week, buyers – together with customers aka ‘retail buyers’ – can legally buy shares within the royalty streams of hits by way of JKBX.com.
The JKBX platform soft-launched final 12 months, however whereas awaiting SEC qualification, its customers may solely ‘reserve’ (slightly than outright purchase) these royalty shares.
From Wednesday (March 6), those self same customers can purchase royalty stakes in hits written and/or recorded by varied 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 big HYBE revealed its This autumn 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 autumn earnings name was “explosive development in [its] album and live performance companies”.
That, although, wasn’t probably 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 have been grilled by buyers in regards to the firm’s efficiency in 2023, got here a be aware from the decision operator:
“At the moment’s earnings presentation was not delivered by CEO Jiwon Park himself, however via TTS [text-to-speech], an AI voice synthesis expertise by Supertone…”
