This week, it was reported that Mayer’s company is in talks to acquire Will Smith and Jada Pinkett Smith’s Westbrook Inc, marking its second major buy, and the exec today teased that the deals won’t end there. “We’re going to bring in other category-defining businesses and brands that will fill out a whole spectrum of audiences,” he commented, adding that he couldn’t spill the beans on any specific acquisitions but that they “are considering some”.
Finance
Cinq Music parent GoDigital acquires music finance company Sound Royalties
Los Angeles-headquartered GDMG has teamed with MEP Capital to acquire Sound Royalties, the music financing platform that pays out advances to artists and rights-holders based on predicted future royalty income. Peterson didn’t disclose the price of the deal but confirmed it was a “high eight-figure purchase” – i.e. tens of millions of dollars – backed by funding from MEP.
Sony Music’s Acquisition of Kobalt’s AWAL Raises U.K. Regulatory Concerns
The U.K. regulator Competition and Markets Authority has raised concerns around Sony Music’s purchase of Kobalt’s recorded-music services division AWAL, after the first phase of its investigation into the acquisition. The investigation found that the distribution of recorded music in the U.K. is currently “highly concentrated,” with the three major labels accounting for the majority of the market and the independent sector handling the remainder.
Source: Sony Music’s Acquisition of Kobalt’s AWAL Raises U.K. Regulatory Concerns
Justice Dept. Is Said to Accelerate Google Advertising Inquiry
The Department of Justice has accelerated an investigation into Google’s digital advertising practices and may file an antitrust lawsuit against the internet giant before the end of the year, two people with knowledge of the government’s thinking said on Wednesday.
Source: Justice Dept. Is Said to Accelerate Google Advertising Inquiry
Apple to Allow Media Apps to Link to Own Websites for Payment Options
Source: Apple to Allow Media Apps to Link to Own Websites for Payment Options
Apollo completes its $5B acquisition of Verizon Media, now known as Yahoo
Private equity firm Apollo Global Management this morning announced that it has completed its acquisition of Yahoo (formerly known as Verizon Media Group, itself formerly known as Oath) from Verizon. The deal is worth $5 billion, with $4.25 billion in cash, plus preferred interests of $750 million. Verizon will be retaining 10% of the newly rebranded company.
Source: Apollo completes its $5B acquisition of Verizon Media, now known as Yahoo
Writers Guild, Public Interest Groups Ask FTC To Block Amazon-MGM Deal
Thirty-four groups from the Writers Guild of America West to Public Citizen to Demand Progress have appealed to the Federal Trade Commission to block Amazon’s proposed acquisition of MGM, which they say reflects the e-commerce giant’s growing dominance.
Bill Ackman: Universal and Warner are both under-valued… but UMG’s the right bet for us
What does Ackman think about UMG and WMG? In short, he thinks they’re both under-valued – but that, out of the two, UMG’s the better bet. And he believes that his investors’ chances of making a long-term loss on their near-$4 billion combined investment into Universal is “minimal”.
Source: Bill Ackman: Universal and Warner are both under-valued… but UMG’s the right bet for us
Why This Is the Right Time to Sell Your Catalog
Thanks to historically low interest rates and the fervor of investors seeking a new steady stream of income, artists across the spectrum are doing what was once unthinkable — selling their music catalogs. But the window may be closing soon for musicians hoping to maximize their returns on what’s likely their most precious asset.
Source: Why This Is the Right Time to Sell Your Catalog (Guest Column)
BMG midyear 2021 revenues up 9%, has over $1bn of acquisition deals in play with KKR
BMG saw its half-year revenues grow 9% YoY at constant currency to €296 million ($357m) in the six months to end of June. That represented the music rights company’s best-ever midyear performance since it was formed in 2008. 62.9% of BMG’s revenues in the first half of 2021 were from publishing, with 37.1% from recordings.
Source: BMG revenues up 9% in first half of 2021… and it has over $1bn of acquisition deals in play with KKR