Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s 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.
The music industry is used to seeing nine-figure acquisitions take place these days. But the stack of cash that hit our headlines on Monday (April 26) was enough to shock even the most hardened of industry money moguls.
Nearly $800m changed hands via two announcements within a six-hour period: (i) Hasbro selling Entertainment One Music (eOne Music) to Blackstone for $385 million in cash; and (ii) Concord buying Downtown‘s owned music copyright catalog for what MBW’s sources say was $400 million (a figure later backed up by a report in the Wall Street Journal).
Meanwhile, Goldman Sachs, via its Music In The Air report, has raised its valuation of Universal Music Group from €30 billion to €44 billion. The latter figure is roughly equivalent to $53 billion at current exchange rates.
The past five days have also taught us that Tencent might be about to be stung with a $1.5 billion fine by China’s State Administration of Market Regulation (SAMR), while Spotify‘s global Premium Subscriber base grew to 158 million in Q1.
Here’s a recap…
1) CONCORD BUYS DOWNTOWN’S OWNED MUSIC COPYRIGHT CATALOG FOR AROUND $400M
Concord was one of the global music industry’s big-spenders in 2020, splashing over $100 million on two occasions – once to buy a majority stake in Pulse Music Group, and then again to buy a catalog from hit-making US band Imagine Dragons.
Compared to that, 2021 has been relatively quiet for Concord’s dealmaking team… until now.
On Monday (April 26), it was confirmed that a Concord 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
Financial giant Blackstone is about to acquire a big bundle of music rights.
Hasbro has confirmed it has entered into a definitive agreement to sell Entertainment One Music (eOne Music) to entities controlled by Blackstone for USD $385 million in cash.
The transaction is expected to close in the second or third quarter of 2021.
The deal will add to a portfolio of music companies under Blackstone that also include music rights org SESAC.
Photo Credit: Giorgio Trovato
3) GOLDMAN SACHS: UNIVERSAL IS WORTH OVER $50BN, AND GLOBAL MUSIC STREAMING REVENUES WILL RISE $3BN THIS YEAR
If there’s one music industry report that sets the industry’s expectations more than any others these days, it’s Goldman Sachs’ Music In The Air.
The financial company has this week released its latest update to the paper, which has been obtained by MBW.
Goldman Sachs, via the new Music In The Air, has raised its valuation of Universal Music Group from €30 billion to €44 billion. The latter figure is roughly equivalent to $53 billion at current exchange rates.
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 Entertainment (TME), are facing a potential battering in China as part of an antitrust clampdown by the nation’s regulators.
According to a new report from Reuters, though, China’s State Administration of Market Regulation (SAMR) is set to “make an example” of Tencent, and that the company should expect to be stung with a fine of at least 10 billion yuan ($1.54 billion) as a result.
Tencent will be raked over the coals for “anticompetitive practices in some of its businesses”, says a Reuters source, “with music streaming in particular focus”.
Credit: sdx15 / Shutterstock
5) SPOTIFY SUBSCRIPTIONS GREW JUST 2% TO 158M IN Q1, MONTHLY ACTIVE USERS TOPPED 356M
Spotify published its financial results for Q1 2021 on Wednesday (April 28), revealing that its global Premium Subscriber base grew to 158 million in the quarter (ended March 31).
That was up 21% year-on-year, but up by just 2%, or 3 million subscribers, on the 155m that SPOT counted at the end of the prior quarter (Q4 2020).
The company’s total global Monthly Active Users, (MAUs), meanwhile, grew 24% year-on-year to 356m in Q1 2021 and by 3% compared to the previous quarter.
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