This week, Chord Music Companions secured over $2 billion in investable capital with one other $1 billion+ anticipated, marking a serious milestone for the UMG-backed music rights funding automobile.
In the meantime, Common Music Group CEO Sir Lucian Grainge fired again at Drake’s defamation lawsuit, calling the rapper’s claims “ridiculous” and “groundless” whereas confirming Common’s huge investments in Drake’s profession.
Elsewhere, Kobalt inked a direct licensing cope with Spotify within the US, becoming a member of Common and Warner in bypassing the controversial audiobook ‘bundling’ fee construction.
Additionally this week, Tencent Music revealed its ‘Tremendous VIP’ subscriber tier has reached 15 million customers, driving vital income development in China’s streaming market.
Listed below are among the greatest headlines from the previous few days…
1. EXCLUSIVE: CHORD MUSIC PARTNERS RAISES $2 BILLION+ IN INVESTABLE CAPITAL… WITH ANOTHER $1 BILLION+ ON THE WAY
Chord Music Companions has raised over $2 billion in investable capital through a funding spherical attributable to shut in October, with sources anticipating a further $1 billion to $2 billion earlier than completion. The spherical has been fueled by fairness investments from household workplaces and pension funds throughout Europe and the US, with Common Music Group sustaining its ~26% share by way of an incremental €30 million funding.
Searchlight Capital Companions has been confirmed as a brand new investor. MBW understands that Searchlight has contributed $400 million to Chord in fairness funding.
Chord has been “intentionally quiet” about offers over the previous 12 months, although nine-figure agreements have leaked together with a Morgan Wallen acquisition reportedly price north of $200 million. The corporate’s portfolio consists of music from The Weeknd, Lorde, David Guetta, and different main artists, with publishing rights administered by way of UMPG and recorded music by way of Virgin Music Group… (MBW)
2. UMG’S SIR LUCIAN GRAINGE REFUTES ‘RIDICULOUS’ CLAIMS IN DRAKE LAWSUIT, CONFIRMS UNIVERSAL BOUGHT STAR’S RECORDED MUSIC AND PUBLISHING CATALOGS
Common Music Group CEO Sir Lucian Grainge has filed a sworn declaration pushing again in opposition to Drake’s makes an attempt to power him to offer paperwork within the rapper’s defamation lawsuit. Grainge describes the artist’s claims in that swimsuit as “farcical” and “groundless.”
Within the declaration, filed on August 14 within the US District Courtroom for the Southern District of New York and obtained by MBW, Grainge states that he “had by no means heard the recording ‘Not Like Us,’ nor ever noticed the corresponding cowl artwork or music video, till after they have been launched by Interscope Information.”
Provides Grainge: “While, as a part of my position, I actually have monetary oversight of and accountability for UMG’s international companies, the proposition that I used to be concerned in, a lot much less accountable for, reviewing and approving the content material of ‘Not Like Us’, its cowl artwork or music video, or for figuring out or directing the promotion of these supplies, is groundless and certainly ridiculous…”… (MBW)
3. KOBALT INKS DIRECT LICENSING DEAL WITH SPOTIFY IN THE US
Spotify and Kobalt have signed a direct, multi-year licensing settlement overlaying the USA. The settlement marks Spotify’s newest direct cope with a outstanding music writer and strikes its settlement with Kobalt past the standard CRB mannequin within the US.
Which means Kobalt’s direct deal supersedes the audiobook ‘bundling‘ fee construction that, beginning in March final 12 months, noticed Spotify dramatically reduce the speed of mechanical royalties paid to publishers and songwriters within the US.
Since then, Common Music Publishing Group and Warner Chappell Music have signed direct licensing offers with Spotify that override the CRB bundling low cost. Sony Music Publishing is the biggest excellent participant on SPOT’s checklist of potential direct licensing offers. MBW understands that Spotify is at present in discussions with the corporate a few new deal.
Kobalt claims to be the world’s largest impartial music writer, serving over 1 million songs throughout 10 international workplaces… (MBW)
4. TENCENT MUSIC NOW HAS 15 MILLION ‘SUPER VIP’ SUBSCRIBERS
Tencent Music Leisure revealed its premium ‘Tremendous VIP’ tier has reached 15 million subscribers, representing 12% of the corporate’s whole 124.4 million paying music customers and driving vital income development in Q2 2025. The milestone represents robust development from 10 million SVIP subscribers reported in Q3 2024, with customers paying roughly RMB 40 ($5.58) month-to-month in comparison with the usual RMB 8 ($1.12) subscription.
TME’s music subscription revenues reached RMB 4.38 billion ($611 million) in Q2, representing 17.1% YoY development, whereas month-to-month ARPPU elevated 9.3% YoY to RMB 11.7 ($1.63). The SVIP tier affords premium sound high quality, unique digital albums, precedence live performance ticket entry, and collectible ‘star card’ collection with artists like JC-T, Silence Wang, and aespa.
Regardless of whole month-to-month lively customers declining 3.2% YoY to 553 million, TME’s give attention to premium monetization by way of SVIP memberships has pushed general profitability. The corporate’s whole revenues reached RMB 8.44 billion ($1.18 billion) in Q2, up 17.9% YoY, with music operations now accounting for 81% of whole quarterly revenues in comparison with 76% in the identical interval final 12 months… (MBW)
5. WARNER MUSIC GROUP JUST WROTE DOWN THE VALUE OF EMP BY $70M. IS A SALE ON THE CARDS?
Warner Music Group could also be getting ready to promote EMP Merchandising, the European rock and steel merchandise e-retailer it acquired for USD $180 million in 2018.
That’s in response to clues in WMG’s newest earnings press launch and quarterly SEC submitting, noticed by MBW.
The quarterly submitting, overlaying the three months ended June 30, 2025, reveals a USD $70 million pre-tax impairment cost on “long-lived belongings related to sure of [WMG’s] non-core e-tailer operations” – following what Warner describes as a “triggering occasion”.
In earlier Warner annual filings, just one subsidiary is known as an “e-tailer”: EMP…. (MBW)
Companion message: MBW’s Weekly Spherical-up is supported by BMI, the international chief in performing rights administration, devoted to supporting songwriters, composers and publishers and championing the worth of music. Discover out extra about BMI right here. Music Enterprise Worldwide
