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Welcome to Music Enterprise Worldwide’s weekly round-up – the place we ensure 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 maximise their earnings and cut back their touring prices.
The music business is used to seeing nine-figure acquisitions happen nowadays. However the stack of money that hit our headlines on Monday (April 26) was sufficient to shock even essentially the most hardened of business cash moguls.
Almost $800m modified arms by way of two bulletins inside a six-hour interval: (i) Hasbro promoting Leisure One Music (eOne Music) to Blackstone for $385 million in money; and (ii) Harmony shopping for Downtown‘s owned music copyright catalog for what MBW’s sources say was $400 million (a determine later backed up by a report within the Wall Avenue Journal).
In the meantime, Goldman Sachs, by way of its Music In The Air report, has raised its valuation of Common Music Group from €30 billion to €44 billion. The latter determine is roughly equal to $53 billion at present change charges.
The previous 5 days have additionally taught us that Tencent is perhaps about to be stung with a $1.5 billion high quality by China’s State Administration of Market Regulation (SAMR), whereas Spotify‘s international Premium Subscriber base grew to 158 million in Q1.
Right here’s a recap…
1) CONCORD BUYS DOWNTOWN’S OWNED MUSIC COPYRIGHT CATALOG FOR AROUND $400M
Harmony was one of many international music business’s big-spenders in 2020, splashing over $100 million on two events – as soon as to purchase a majority stake in Pulse Music Group, after which once more to purchase a catalog from hit-making US band Think about Dragons.
In comparison with that, 2021 has been comparatively quiet for Harmony’s dealmaking group… till now.
On Monday (April 26), it was confirmed {that a} Harmony affiliate has acquired 145,000 copyrights from New York-headquartered Downtown for what MBW understands is a $400 million deal.
2) BLACKSTONE IS BUYING EONE MUSIC FROM HASBRO IN $385M CASH DEAL
Monetary big Blackstone is about to accumulate a giant bundle of music rights.
Hasbro has confirmed it has entered right into a definitive settlement to promote Leisure One Music (eOne Music) to entities managed by Blackstone for USD $385 million in money.
The transaction is anticipated to shut within the second or third quarter of 2021.
The deal will add to a portfolio of music firms below Blackstone that additionally embrace music rights org SESAC.
3) GOLDMAN SACHS: UNIVERSAL IS WORTH OVER $50BN, AND GLOBAL MUSIC STREAMING REVENUES WILL RISE $3BN THIS YEAR
If there’s one music business report that units the business’s expectations greater than any others nowadays, it’s Goldman Sachs’ Music In The Air.
The monetary firm has this week launched its newest replace to the paper, which has been obtained by MBW.
Goldman Sachs, by way of the brand new Music In The Air, has raised its valuation of Common Music Group from €30 billion to €44 billion. The latter determine is roughly equal to $53 billion at present change charges.
4) TENCENT COULD BE HIT WITH $1.5BN FINE AND FORCED TO SELL TWO MUSIC APPS IN CHINA (REPORT)
Tencent and its majority-owned subsidiary, Tencent Music Leisure (TME), are dealing with a possible battering in China as a part of an antitrust clampdown by the nation’s regulators.
In keeping with a brand new report from Reuters, although, China’s State Administration of Market Regulation (SAMR) is ready to “make an instance” of Tencent, and that the corporate ought to anticipate to be stung with a high quality of at the very least 10 billion yuan ($1.54 billion) because of this.
Tencent will probably be raked over the coals for “anticompetitive practices in a few of its companies”, says a Reuters supply, “with music streaming particularly focus”.
5) SPOTIFY SUBSCRIPTIONS GREW JUST 2% TO 158M IN Q1, MONTHLY ACTIVE USERS TOPPED 356M
Spotify printed its monetary outcomes for Q1 2021 on Wednesday (April 28), revealing that its international Premium Subscriber base grew to 158 million within the quarter (ended March 31).
That was up 21% year-on-year, however up by simply 2%, or 3 million subscribers, on the 155m that SPOT counted on the finish of the prior quarter (This autumn 2020).
The corporate’s complete international Month-to-month Energetic Customers, (MAUs), in the meantime, grew 24% year-on-year to 356m in Q1 2021 and by 3% in comparison with the earlier quarter.
Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be sure to 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 maximise their earnings and cut back their touring prices.
Music Enterprise Worldwide
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