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Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be 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 maximise their revenue and scale back their touring prices.
There was some behind-the-scenes debate this week as to what Sony Music paid to purchase a majority-stake in Todd Moscowitz’s Alamo Data.
One well-placed supply informed us that, no matter Sony paid, it valued Alamo at a whopping $250 million. Different sources near the deal steered that this mooted $250 million determine was an exaggeration.
All sources agreed that what MBW reported (“Sony paid comfortably north of $125 million”) was true. The query is: how far comfortably north?
Additional MBW sources have since led us to imagine that Sony Music paid someplace between $125 million and $200 million for its majority stake in Alamo.
We don’t know the exact dimension of majority stake Sony acquired. However, for instance, if it purchased a 75% chunk of Moscowitz’s firm for $190 million, that will certainly give Alamo a ≈$250 million valuation.
These guessing video games don’t contact on maybe essentially the most fascinating quirk of the deal, although: Alamo was initially launched as a JV with Common Music Group.
Consequently, Sony Music seems to have simply paid a lump sum of anyplace as much as $125 million (for 50% of Alamo) direct to UMG.
A nine-figure windfall touchdown within the checking account of UMG will little doubt please Invoice Ackman, the CEO of Pershing Sq. Tontine Holdings (PSTH).
PSTH confirmed this week that it’s buying 10% of UMG for $4 billion, and that these shares will turn out to be PSTH’s property after an extra 60% of UMG is listed on the Amsterdam inventory change in September.
As lined in Rolling Stone, PSTH is already hinting that it will likely be fixated on UMG’s backside line in future – and, very probably, on how a lot the foremost music firm is spending.
The SPAC informed its traders this week to look ahead to “predictable, recurring income streams that require minimal capital regardless of excessive progress” from Common, and reassured them that UMG provides “important fastened‐price expense base permitting for lengthy‐time period margin enlargement.”
Whetting future shareholders’ urge for food for fats earnings, Vivendi not too long ago applauded UMG’s “strict price management” within the first three months of 2021.
In the identical three months, and in stark distinction, Sony Music Group (SMG) made three nine-figure acquisitions (Paul Simon’s catalog; Kobalt‘s AWAL; Brazil’s Som Livre label). The Alamo acquisition suggests SMG chief Rob Stringer ain’t planning on slowing down this aggressive M&A technique any time quickly.
Elsewhere this week, Songtradr raised $50 million, Common signed a cope with Snap, and Sony Music Australia chief Denis Handlin left the corporate after over 50 years, as ex-employees accused the agency’s Sydney HQ of harbouring a poisonous office surroundings.
Learn on for the 5 tales you could know from the previous 5 days…
1) SONY MUSIC BUYS MAJORITY STAKE IN TODD MOSCOWITZ’S ALAMO RECORDS FOR NINE-FIGURE SUM
Sony Music Leisure has made yet one more main acquisition – this time on the planet of US hip-hop and pop music – by shopping for a majority stake in Todd Moscowitz’s Alamo Data.
New York-based Alamo was based in 2016 and has damaged artists together with Blackbear, Lil Durk and Rod Wave.
Replace: MBW’s sources inform us the deal was for a nine-figure sum, and that Sony paid comfortably north of $125 million.
We’re informed Common Music Group had a contractual first-option to purchase the label, however agreed to let it go elsewhere.
Lil Durk and Rod Wave have every scored their first No.1 albums on the Billboard 200 this yr with The Voice of the Heroes and SoulFly, respectively…
2) DONE DEAL: PERSHING SQUARE SPAC IS BUYING 10% OF UNIVERSAL MUSIC GROUP FOR $4BN
Pershing Sq. Tontine Holdings (PSTH), a US-based particular goal acquisition firm (SPAC), is formally shopping for 10% of Common Music Group.
PSTH confirmed on Sunday (June 20) that it had entered right into a definitive settlement with UMG’s majority proprietor, Vivendi, to accumulate 10% of excellent atypical shares in UMG for about $4 billion.
Later this yr, after Vivendi completes the beforehand introduced itemizing of UMG on Euronext Amsterdam, shares representing 10% of the music firm will probably be distributed to PSTH shareholders.
Following the Amsterdam itemizing and PSTH share distribution, UMG will probably be owned 10% by Vivendi, 10% by PSTH, 60% as traded on the Amsterdam Euronext, and 20% by a consortium led by Tencent Holdings….
3) Songtradr raises $50m in collection D funding spherical
B2B music licensing market Songtradr has raised USD $50 million in an oversubscribed collection D funding spherical.
The spherical noticed participation from Australian based mostly institutional traders together with Regal, Conscious Tremendous, Perennial, Argo and Greencape, in addition to a follow-on funding from the founder and CEO of Wisetech World, Richard White.
Now, there’s discuss of a possible IPO for Songtradr – maybe even as early because the second half of this yr…
4) Common inks international cope with Snap Inc. spanning recorded music and augmented actuality experiences
Common Music Group (UMG) and Snap Inc have inked what the businesses name an “expansive” and “multifaceted” international settlement.
The deal will enable Snapchat’s customers to include UMG’s catalog of recorded music and content material into artistic instruments, together with Sounds and augmented actuality Lenses.
Beneath the phrases of the multi-year settlement, UMG’s total recorded music catalog is obtainable on a worldwide foundation in Snapchat’s Sounds device, together with Search and curated Playlists…
5) SONY MUSIC AUSTRALIA BOSS DENIS HANDLIN EXITS AFTER 50+ YEARS WITH THE COMPANY
Denis Handlin, Chairman & CEO of Sony Music Leisure Australia & New Zealand, has exited the corporate efficient instantly.
The long-serving Sony Music government’s departure was introduced by Sony Music Group Chairman Rob Stringer in an inside electronic mail despatched to workers on Monday (June 21).
Handlin has led Sony Music Leisure’s operations in Australia for greater than 30 years. He’s additionally Sony Music’s longest serving worker globally, having spent greater than 50 years with the corporate…
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and scale back their touring prices.Music Enterprise Worldwide
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