Music Ally’s Post

Its tough out there for big labels. BMG going at 4.6% YOY when they had to acquire the growth - seems like a very tough year! (when the music industry grew by 8% YOY - so BMG is losing ground). IP plays in the music industry isn't where the growth is! #music #musicindustry #musicbusiness

Away from the constant glitz and media announcements of tech company acquisitions, let's switch our focus to an industry that's hardly on the acquisition news feed. The I dustry is music production. According to an article on billboard.com, The Universal Music Group purchased a majority stake in Nigerian record company Mavin Global, the iconic label founded by Don Jazzy that is home to Rema, Ayra Starr, Crayon and Ladipoe, among others. The deal is expected to be completed by the third quarter, pending regulatory approval, the companies announced. Don Jazzy was also a musician in the previous generation of Afrobeat artistes famous for the song 'Eminado' and 'Dorobucci'. Afrobeats from Nigeria have taken the global audience by storm becoming a huge export that's attracting the attention of the global big players of music production. Music is a universal language that is also a form of art and culture. Afrobeats has proven to be a cultural export from Nigeria that's making seismic waves. To the investors out there, there's more to explore on matters acquisitions than just tech. There are many other business sectors out there making an impact without the hype. https://lnkd.in/daBeWevY

Bill Ackman, a major Universal Music Group shareholder, just got richer – and much more ambitious. What might this mean for UMG? MBW Explains is a series of analytical features in which we explore the context behind major music industry talking points – and suggest what might happen next. #Musicbusiness #BillAckman #UniversalMusicGroup

In the past 3 weeks, almost $1B of music catalogs have been acquired from artists including Michael Jackson, Rod Stewart and Village People. On the funding side, private equity firms have invested over $2.34B into catalog funds to fuel new acquisitions. Here are some of the most notable catalog acquisitions and investments made in February: Artist catalogs: - Michael Jackson’s estate and Sony reached a Blockbuster deal for 50% of his recorded music and publishing catalog for $600M, making it the largest single-artist catalog acquisition in history - Rod Stewart sold his catalog to Irving Azoff’s Iconic Artists Group for nearly $100M - Queen is finally close to selling its catalog for close to $1.2B - Village People’s catalog were acquired by Primary Wave for an undiscloed sum New fundraises:  - Iconic Artists Group closed on a $1B+ funding round for future catalog investment, led by HPS Investment Partners - Cinq Music Group closed on a $250M funding round led by parent company GoDigital for future catalog acquisitions with a focus in the Latin and Country space - Duetti closed on a $90M funding round, including $15M in new equity, led by Nyca Partners, and a $75M credit facility from Northleaf Capital Partners - Primary Wave reportedly received a $1B investment from Brookfield Asset Management The catalog market is still red hot - and continuing to evolve. What's to come: music ETFs? Fan-powered artist investment? Web-3 royalty management? All of the above?

It’s another week of deals for Universal Music Group. Fresh from acquiring a $240m stake in music-rights buyer Chord Music Partners, UMG revealed its role in another nine-figure acquisition yesterday. The deal sees online-shopping firm Ntwrk buying youth-culture brand Complex for $108.6m from its previous owner BuzzFeed. This, barely three years after BuzzFeed bought Complex for $294m. Complex has built its brand around music, trainers and pop culture, with its music vertical being one of the largest remaining editorial brands in the space. Where does UMG fit in to this? It is one of the investors in the new company created by Ntwrk’s acquisition alongside Main Street Advisors, Goldman Sachs and former UMG and Apple executive Jimmy Iovine. However, UMG is also described as a ‘strategic partner’ in the venture, starting with plans for collaboration with its Interscope Geffen A&M (IGA) and Capitol Music Group labels. With an eye to potential reactions within the music industry, UMG made a point of saying in its press release that “this new platform will be accessible to artists from all major and independent labels as well” Read Our Full Analysis Here: https://lnkd.in/eBPxATbd #UMG #ComplexAcquisition #MusicBusiness #musically #musicnews #readmore

The growing global appeal of K-pop, coupled with artists' return to live performances, has led to significant financial gains for major South Korean music companies. In Q2 2023, HYBE, SM Entertainment, YG ENTERTAINMENT, and JYP Entertainment witnessed an average revenue growth of 71%. This surge in performance also reflected in their stocks, with the combined market capitalization for these four companies increasing by over $4.7 billion. JYP Entertainment led the pack with a 124% revenue growth, largely driven by album sales and concerts. However, despite these impressive figures, both JYP and HYBE faced challenges with increased expenses impacting their operating incomes. https://lnkd.in/evNdQ6Rd Glenn Peoples | Billboard #kpop #musicindustry #musicbusiness #quarterlyresults

Universal Music Group is on an acquisition spree this week, bolstering its already star-studded catalogue with even more hits and doubling down on its 'superfans' strategy. 📀 Chord Music Partners: Universal Music Group has acquired a 25.8% minority stake in Chord Music Partners for $250 million, valuing Chord at $1.85 billion. This partnership involves UMG and Dundee Partners, forming a long-term strategic alliance to manage Chord's rights globally and potentially acquire more catalogues in the future. Chord was established in 2021 by KKR and Dundee Partners, boasting a portfolio of roughly 60,000 music intellectual properties from renowned artists like The Weeknd, David Guetta, and others. UMG plans to administer Chord's music publishing rights through Universal Music Publishing Group (UMPG) and its recorded music through Virgin Music Group. KKR will exit Chord once the transaction is complete, with the Dundee consortium and UMG owning 74.2% and 25.8%, respectively. 🏪 Complex: Universal Music Group, along with NTWRK, a 'Live Video Shopping' platform, is acquiring a stake in Complex, a youth-oriented media platform. This is the second time that Complex has been acquired in recent years, with it being sold to BuzzFeed for $294 million in November 2021. BuzzFeed confirmed itself that NTWRK (along with a consortium) has agreed to buy Complex Networks for $108.6 million. According to UMG's press release, the acquisition aims 'to create a new destination for “superfan” culture that will define the future of commerce, digital media, and music.' I have always been impressed by UMG's bets on the future and the larger picture, always one step ahead of the curve. I am putting the links to both press releases in the comments below. #MusicBusiness #MusicIndustry #UniversalMusicGroup #Fairplay #Perfunktory

March 26, 2024, Toronto, Canada. Music Royalties Inc. (‘MRI’) is pleased to announce the payment of its 50th dividend representing: 1)     a cumulative $0.112 per share in dividends and 2)     a total of over $8 million has been paid out to shareholders since 2019.   MRI 5 Year Dividend Track Record  MRI has more than tripled its dividend and stock price over the past 6 years through significant annual increases in the dividend (+20%, +50%, +33%, +25%, +20%) reflecting MRI’s long-term strategy of making accretive acquisitions at 6x to 10x cash flow, generating 10 to 15% yields which underpins the company’s ability to grow the dividend by double digit rates on an ongoing basis. The company’s goal is to list publicly to allow music fans as investors to own a share of passive non-correlated music streaming cash flow from top global artist brands, driven by global smartphone and streaming growth. The accretive corporate acquisition model with no AUM fees or debt allows MRI to continually increase its dividend and stock price. MRI is committed to fully passing through streaming revenues to shareholders. MRI is a diversified portfolio of primarily passive streaming income and is not in the music business. Read More below: https://lnkd.in/gzznV4t5

Due to their low correlation, consistent returns and resiliency against market fluctuations, music royalties can make for very valuable investments. CJ Wei, director of private credit at Northleaf Capital Partners, outlines how investors can make the most of this increasingly attractive asset class. Read more: https://lnkd.in/eQPt3WZM #abfj #topstories #digitaledition #assetbasedlending #musicroyalties