This week, Harmony closed its largest-ever asset-backed securities transaction, elevating USD $1.765 billion backed by over 1.3 million music copyrights.
In the meantime, the European Fee confirmed that it was opening an in-depth Section II investigation into Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings, citing preliminary considerations about potential diminished competitors.
Elsewhere, Warner Music Group promoted Alejandro Duque to a twin position as President of each ADA and Warner Music Latin America, increasing his tasks throughout the corporate’s distribution and companies division. Duque takes over as head of ADA from Cat Kreidich, who’s leaving the corporate.
Additionally this week, Recognition Music Group introduced plans for a $372 million bond sale backed by its catalog previously referred to as Hipgnosis Songs Fund, whereas ONErpm founder Emmanuel Zunz declared that conventional trade classes like “document labels” and “distribution corporations” now not exist… with truthful justification.
Listed here are a number of the largest headlines from the previous few days…
1. CONCORD CLOSES $1.76 BILLION ASSET-BACKED SECURITIES TRANSACTION TO ‘FUEL CONTINUED GROWTH’
Harmony has efficiently closed its newest asset-backed securities transaction to “gasoline continued development” on the unbiased music firm. The corporate issued $1.765 billion in bonds by way of a sequence of latest five-year, seven-year, and ten-year senior notes backed by Harmony’s catalog of over 1.3 million music copyrights.
The bonds are secured by Harmony’s portfolio that includes songs and recordings from artists together with The Beatles, Beyoncé, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Think about Dragons, John Fogerty, Kiss, Michael Jackson, Otis Redding, Phil Collins, Pink Floyd, R.E.M., Rihanna, Rodgers & Hammerstein, Taylor Swift, and The Rolling Stones… (MBW)
2. EU OPENS IN-DEPTH INVESTIGATION INTO UMG’S $775M DOWNTOWN DEAL
The European Fee has opened an in-depth Section II investigation into Common Music Group’s $775 million acquisition of Downtown Music Holdings, asserting on Tuesday (July 22) that it has preliminary considerations the deal might scale back competitors in wholesale distribution of recorded music within the European Financial Space.
The EC mentioned it’s “preliminarily involved that the transaction might permit UMG to scale back competitors out there for the availability of artist and label companies within the EEA by eradicating an essential aggressive power” and that UMG might purchase commercially delicate information from rival document labels. UMG’s Virgin Music Group revealed in December that it had agreed to purchase Downtown Music Holdings LLC within the $775 million deal.
The Fee now has till November 26 to decide following the 90-day Section II investigation course of. A UMG spokesperson mentioned the corporate “stays assured that the mix of Virgin and Downtown will create an improved providing within the rising and extremely aggressive label companies class that at present consists of roughly 100 corporations”… (MBW)
3. ALEJANDRO DUQUE TAKES ON DUAL ROLE AS PRESIDENT OF ADA AND PRESIDENT OF WARNER MUSIC LATIN AMERICA
Alejandro Duque has been named President of ADA, Warner Music Group’s distribution and companies division for indie labels and artists, increasing on his current tasks as President of Warner Music Latin America. Duque will proceed to be based mostly in Miami and report back to WMG CEO Robert Kyncl.
Since serving as President of Warner Music Latin America from 2021, Duque has championed breakthrough artists reminiscent of Blessd, Danny Ocean, Elena Rose, Myke Towers, Natanael Cano, Ovy on the Drums, Tiago PZK, Tokischa, Yami Safdie, and Yandel. WMG mentioned a key driver of his success has been his capacity to convey the corporate nearer to the unbiased neighborhood and spearhead development of its distribution enterprise within the area.
Duque succeeds former ADA President Cat Kreidich, who left the position as reported on Tuesday (July 22). Robert Kyncl mentioned Duque’s management will assist differentiate ADA by “offering unbiased labels and artists with alternatives at a pace and scale they gained’t discover wherever else”… (MBW)
4. RECOGNITION MUSIC GROUP PLANS $372M BOND SALE – AS VALUE OF CATALOG ONCE KNOWN AS HIPGNOSIS SONGS FUND CONTINUES TO BALLOON
Recognition Music Group, the Blackstone-owned firm that now controls the portfolio previously referred to as Hipgnosis Songs Fund, is planning a $372 million issuance of five-year bonds backed by its multi-billion-dollar music catalog. The catalog consists of recorded music and/or publishing rights from artists such because the Purple Scorching Chili Peppers, Journey, Justin Bieber, and Shakira.
In keeping with a report from Kroll Bond Score Company, based mostly on a third-party valuation as of March 31, the catalog backing Recognition’s ABS transaction was price $2.95 billion, inclusive of $340.8 million in further property that Recognition added to it. This implies the portfolio that till just lately was referred to as Hipgnosis Songs Fund was price $2.61 billion as of the top of March, representing speedy development since Blackstone acquired it in summer season 2024.
The Recognition portfolio consists of round 47,000 grasp recordings, compositions, and associated property with a weighted common age of round 21 years. KBRA gave the bond issuance a score of A, noting that streaming revenues proceed to symbolize a constructive tailwind to trade development and catalog cashflow… (MBW)
5. ONERPM’S EMMANUEL ZUNZ: ‘THERE ARE NO MORE DISTRIBUTION COMPANIES, THERE ARE NO MORE RECORD LABELS. THERE ARE JUST COMPANIES PROVIDING SOLUTIONS TO CREATORS.’
Nashville-headquartered ONErpm has continued its outstanding development trajectory, positioning itself as one of many music trade’s most important unbiased gamers. Based in 2010 and fully self-funded, ONErpm is on observe to hit round $300 million in gross income this yr, working in 40+ territories globally with a claimed 2.7% worldwide market share on Spotify.
ONErpm founder Emmanuel Zunz bristles at conventional trade categorizations, stating: “There are not any extra ‘distribution’ corporations, and there are not any extra ‘document labels’. There are simply corporations offering options to creators.” It’s a philosophy that runs by means of every part ONErpm does, from primary distribution agreements to full label companies offers, catalog acquisition, and joint ventures.
Notably, when requested concerning the Downtown-Common deal, Zunz mentioned he responded to the European Fee’s questionnaire by emphasizing there are many alternate options for unbiased artists and labels out there… (MBW)
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