Welcome to Music Business 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 revenue and cut back their touring prices.
This week introduced information of not one, however two $300m+ offers related to leisure large HYBE, the corporate behind BTS.
On Thursday (February 9), HYBE America, led by CEO Scooter Braun, introduced its acquisition of Atlanta rap powerhouse QC Media Holdings or Quality Control, dwelling to acts similar to Lil Child, Migos, Lil Yachty and Metropolis Women. Selection reported that the deal is valued at $320 million in inventory and money.
Right this moment (February 10), we realized that HYBE is shopping for a 14.8% stake in SM Leisure from its founder Lee Soo Man, in a deal value 422.8 billion South Korean Received (approx. $334.5 million).
Lee Soo Man was the corporate’s largest shareholder previous to the deal, with an 18.46% stake, which signifies that HYBE, with a 14.8% stake within the firm, will turn into SM Leisure’s largest shareholder.
Additionally this week, Warner Music Group reported its outcomes for the three months to finish of December 2022 (calendar This autumn, however fiscal Q1 at WMG) and Robert Kyncl participated in his first quarterly earnings name as Warner Music Group CEO.
Elsewhere, TikTok launched its impartial distribution platform SoundOn in Australia, simply days after information arrived that the platform has been limiting entry to main label music available in the market as a part of a check with a subset of customers.
Plus, Hipgnosis acquired a track catalog from the first-ever Grammy Songwriter of the Yr Tobias Jesso Jr., whereas Songtradr agreed to purchase UK-based music expertise firm 7digital.
Right here’s what occurred this week…
1) HYBE HAS NOW SPENT $600M+ IN ONE WEEK, AS IT BUYS 14.8% STAKE IN K-POP RIVAL SM ENTERTAINMENT FOR $334M
There’s a number of consolidation occurring amongst the giants of the Ok-Pop business.
Earlier this week, we realized that South Korea-based Kakao Corp had acquired a 9.05% stake in Ok-Pop firm SM Leisure, which is behind stars like NCT, EXO and Aespa.
In keeping with Reuters, Kakao is shopping for its stake in SM Leisure in a deal value 217.2 billion gained ($172.8 million).
Now, one other large of the Ok-Pop world, HYBE, the corporate behind superstars BTS, can also be taking a stake in SM Leisure….”
2) TIKTOK, INDIE TRACKS, AI, AND TECH-DRIVEN ‘EFFICIENCIES’: ROBERT KYNCL’S FIRST EARNINGS CALL AT WMG WASN’T SHORT ON PUNCHINESS
Robert Kyncl may have requested for a rosier set of fiscal outcomes to accompany his first quarterly earnings name as Warner Music Group CEO.
WMG’s traders can be hard-pressed, nonetheless, to ask for an handle that was extra candid and unequivocal.
Instance: Inside 50 seconds of his opening speech, Kyncl advised analysts: “I’m dedicated to sustaining easy and constant communication inside the investor neighborhood. So in that spirit, I wish to instantly and clearly acknowledge that this was a tricky quarter.”
Clearly, Kyncl had due trigger for this acknowledgment: WMG’s recorded music streaming revenues fell 2.6% YoY at fixed forex within the three months to finish of December 2022 (calendar This autumn, however fiscal Q1 at WMG)…
3) TIKTOK LAUNCHES DIY DISTRO SERVICE SOUNDON IN AUSTRALIA, THE SAME WEEK IT STARTED LIMITING ACCESS TO MAJOR LABEL MUSIC IN THE MARKET
The timing of TikTok’s newest information is certain to boost just a few eyebrows within the world music business.
TikTok has launched its impartial distribution platform SoundOn in Australia, simply days after information arrived that the platform has been limiting entry to main label music available in the market as a part of a check with a subset of customers.
SoundOn was already Stay within the UK, US, Brazil and Indonesia, after launching in March final 12 months…
4) HIPGNOSIS ACQUIRES SONG CATALOG OF TOBIAS JESSO JR., WHO WAS JUST NAMED SONGWRITER OF THE YEAR AT THE GRAMMYS
Hipgnosis Track Administration has made its third acquisition in three weeks, shopping for a track catalog from Tobias Jesso Jr., who on Sunday (February 6) was named because the first-ever Grammy Songwriter of the Yr.
Jesso’s credit embrace Adele’s hit When We Had been Younger which has been streamed on Spotify over a billion occasions and Boyfriends, a observe on Harry’s Home which gained this 12 months’s Grammy for Album of the Yr.
Information of the deal follows Hipgnosis’ acquisition final week of a track catalog from TMS, the British songwriting and report manufacturing trio of Tom ‘Froe’ Barnes, Benjamin Kohn and Pete ‘Merf’ Kelleher for an undisclosed payment.
It additionally comes two weeks after shopping for a track catalog and related revenue streams from Justin Bieber for round $200 million… (MBW)
5) SONGTRADR TO ACQUIRE 7DIGITAL, A UK PUBLICLY LISTED B2B MUSIC TECHNOLOGY COMPANY, IN $23.4M DEAL
Los Angeles-based B2B music licensing firm Songtradr has agreed to accumulate 7digital, a UK-based publicly listed music expertise firm.
That’s in keeping with a submitting revealed within the UK on Wednesday (February 8), which states that the transaction is predicted to shut in Q1 2023 and that the deal is an all-cash provide for 7digital’s whole issued share capital, valued at approx. £19.4 million ($23.4m).
7digital offers a catalog of over 80 million licensed tracks and gives API providers to energy music in apps throughout health, social, radio, gaming and background music…
MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.
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