From HYBE’s $1 billion revenue to Warner’s $750 million BlackRock fund: This is MBW’s weekly roundup
Welcome to Music Business Worldwide’s weekly roundup – where we make sure you’ve caught the five biggest stories that have made headlines over the past seven days. MBW’s Roundup is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize revenue and lower touring costs.
The global music industry was teeming with offers and dollar signs this week.
On Wednesday, February 23, we learned that Influence Media Partners had formed an alliance with BlackRock and Warner Music Group to create a new music rights buying platform… worth $750 million.
As The Wall Street Journal reported, $300 million has already been deployed to date, across several modern songwriter/producer slates.
That wasn’t the only catalog acquisition news to make MBW’s headlines this week.
Yesterday (February 24), Spirit Music Group announced that they have purchased the recorded music catalog of multi-platinum country superstar, Jason Aldean.
The acquisition includes 90% of Aldean’s recorded music catalog as well as related rights and SoundExchange royalties.
MBW understands that Aldean retains the remaining 10% ownership in the catalog and that the deal cost Spirit more than $100 million.
BMG-owned Broken Bow Records has been Jason Aldean’s label for nearly two decades. Following the announcement of the Spirit acquisition, BMG decided to clarify that Broken Bow will remain Aldean’s label until “at least 2030”.
Also this week, HYBE, home of mega stars BTS, topped $1 billion in revenue in 2021, marking the first time the company broke the $1 billion barrier in annual revenue.
Additionally, Brazil’s competition watchdog has approved the acquisition of Som Livre by Sony Music for $255 million (owner of Brazil’s largest national record label), while Ben’s music company Mumford & Sons’ Lovett, tvg Hospitality, has closed a new round of $50 million.
Here’s what’s been happening in the music industry this week…
1) BLACKROCK TEAMS UP WITH WARNER TO LAUNCH NEW $750M MUSIC BUY FUND VIA INFLUENCER MEDIA
Another week, another big money acquisition fund in music emerges…but this one comes with some interesting twists.
Financial giant BlackRock (not to be confused with Blackstone, which backs Hipgnosis) has co-invested with Warner Music Group in a new $750 million fund to acquire stakes in music copyrights.
According to the Wall Street Journal, this fund is launched in partnership with Influence Media
Partners, the American company founded by Lylette Pizarro that has already bought the rights to songwriters such as Julia Michaels and Ali Tamposi.
There’s no way to say this lightly: in its global portfolio, BlackRock currently has over $10 trillion (with a “t”) in assets under management…
2) SPIRIT MUSIC GROUP ACQUIRES JASON ALDEAN MASTERS FOR MORE THAN $100M
Two weeks ago on MBW’s Talking Trends podcast, we predicted that country music — for a variety of reasons — could become the big noise in catalog acquisitions in 2022. That prediction just took a big step forward for become reality.
Spirit Music Group today (February 24) announced the acquisition of the recorded music catalog of multi-platinum country superstar, Jason Aldean.
The acquisition includes 90% of Aldean’s recorded music catalog and includes nine albums in total, including twenty-four No. 1 songs, thirty-four Top 10 songs and six RIAA-certified Platinum albums…
3) HYBE, HOME OF BTS, EXCEEDED $1 BILLION IN REVENUES IN 2021 – THE YEAR IT ACQUIRED ITHACA HOLDINGS FROM SCOOTER BRAUN
Has HYBE just established itself as the fourth largest music rights company in the world?
The South Korea-based company, which began life as Big Hit – and remains the headquarters of BTS – posted record annual revenue in 2021.
Those revenues reached 1.257 billion South Korean won (KRW), according to new investor filings, up 58% year-on-year.
This KRW figure converts to USD 1.098 billion at the average annual exchange rate (according to the IRS) – the first time that HYBE has broken the billion dollar annual revenue barrier.
4) NOW SONY MUSIC GETS CLEARANCE FOR $255M SOM LOOK ACQUISITION IN BRAZIL
What a month it’s been for Sony Music Group.
In early February, the company’s parent company – Sony Corp – disclosed that its global recorded music and music publishing businesses generated approximately $7.5 billion in calendar year 2021. According to MBW calculations , that figure had increased by no less than $1.4 billion year-over-year.
Two weeks later, the UK Competition and Markets Authority (CMA) gave the provisional green light to Sony’s $430 million acquisition of AWAL from Kobalt Music Group.
Wednesday (February 23) brought more massive news: MBW confirmed that Brazil’s equivalent competition watchdog, CADE (Conselho Administrativo de Defesa Econômica), has given its approval to Sony Music’s acquisition of Som Livre, owner of the largest national record label in Brazil…
5) BEN LOVETT’S TVG HOSPITALITY RAISE $50M FROM INVESTORS INCLUDING IRVING AZOFF, CORAN CAPSHAW AND RYAN TEDDER
UK-born music venue developer and operator TVG Hospitality has raised $50 million in new funding to expand its portfolio of teams and venues across the UK and US.
Tvg was founded by Ben Lovett of Grammy-winning British group Mumford & Sons, along with his brother Greg Lovett, former chief financial officer of Soho House.
The firm currently operates three venues in London, with “multiple” venues under development in the US, including the Orion Amphitheater in Huntsville, Alabama, which will open in May 2022…The music industry around the world