UMG today disclosed the high-profile tie-up as well as its aggressive focus on AI patents. Regarding the aggressive descriptor, the label has already filed 15 applications with the self-described IP asset management firm Liquidax. These applications concern technology at the intersection of music and collaboration, “AI threat protection,” multimedia content, health, rights management, and administration, the companies indicated.
Source: Universal Music Eyes AI Patents Under Liquidax Partnership
According to a statement released on Tuesday (July 22), Concord is issuing $1.765 billion in bonds via a series of new five-year, seven-year, and ten-year senior notes. The bonds are backed by Concord’s catalog of over 1.3 million music copyrights. The latest bond issuance represents Concord’s fourth securitization offering and is claimed to be “the largest and longest tenured asset-backed term securitization of music rights to date”.
Source: Concord closes $1.76 billion asset-backed securities transaction to ‘fuel continued growth’
The world’s largest music rights company confirmed in a press release on Monday evening (July 21) that it has “confidentially” submitted a Form F-1 to the US Securities and Exchange Commission, “relating to a proposed public offering in the United States of the company’s ordinary shares held by certain shareholders”. Monday’s press release did not disclose the timing, pricing, or venue of UMG’s proposed US listing.
Source: Universal Music Group takes step closer to US listing, filing draft registration with SEC
Today’s announcement is of several commitments that aim to improve the income for legacy artists, songwriters and session musicians. For the artists, all three majors have committed to ‘disregarding’ unrecouped balances – advances they haven’t paid off – for artists signed before the start of 2000, with this date rolling forward every year.
Source: UK government reveals streaming reforms – focusing on label commitments
Private equity firm Blackstone has pulled out of the investor consortium looking to buy TikTok’s US operation, Reuters reported Friday (July 18), citing a source familiar with the matter. The withdrawal comes as TikTok’s presence in the US remains uncertain, with multiple deadline extensions on the divest-or-ban law. Blackstone had reportedly been slated to take a minority stake in the platform’s US business alongside other consortium members.
Source: Blackstone exits consortium for TikTok deal as divest-or-ban deadline looms (report)
The European Commission is planning to open a “full-scale” investigation into Universal Music Group‘s proposed acquisition of Downtown Music Holdings. That’s according to a report published by Reuters, citing “three people with direct knowledge of the matter.” UMG’s Virgin Music Group revealed in December that it had agreed to buy Downtown Music Holdings LLC in a $775 million deal.
Source: EU to launch ‘full-scale’ investigation into UMG’s $775m Downtown deal, Reuters reports
Moonvalley, an AI research company that says it is developing “ethical” foundational AI video models trained exclusively on licensed content, announced $84 million in additional funding led by existing investor General Catalyst. The round includes strategic investments from CAA and Comcast Ventures, as well as AI cloud company CoreWeave.
Source: Comcast, CAA Invest in ‘Ethical’ AI Video Start-Up Moonvalley as Part of $84 Million Funding Round
The bond issuance is backed by the master recordings and compositions from artists such as Creed, R.E.M. and Phil Collins, American Banker reported, citing data from Kroll Bond Ratings Agency (KBRA). According to ratings agency Moody’s, the proceeds will be used to repay a bond issuance that Concord completed in 2022. At the time, it was described as “the largest asset-backed securitization offering of music rights in the industry to date.”
Source: Concord prepares to issue $1.75bn in bonds, in ABS transaction backed by 1 million music copyrights
A group of independent music companies and trade associations called on the European Union to launch an in-depth investigation into Universal Music Group’s acquisition of Downtown Music Holdings, saying the deal threatens competition if antitrust officials let it go ahead. Universal entered into a definitive agreement in December for its Virgin Music Group label to buy Downtown for $775 million in cash.
Source: Universal Music’s Downtown Deal Warrants In-Depth EU Investigation, Critics Say
After stepping down from Hipgnosis following its $1.6 billion sale to Blackstone and a turbulent period of boardroom drama, Mercuriadis is launching a new venture under the Hipgnosis branding. The new Hipgnosis will focus on a partnership model, bringing together artists and their managers as co-owners.
Source: Merck Is Back! Hipgnosis Founder is Plotting a New Venture