Virgin Music Group, the global independent music division of Universal Music Group, announced today it has entered into a definitive agreement to acquire Downtown Music Holdings LLC (Downtown) for cash consideration of $775 million (approximately €737 million). The acquisition, which is subject to regulatory approvals, is expected to close in the second half of 2025.
Source: Universal’s Virgin Music Group to buy Downtown Music for $775 million
Of note, Murray said that audiobooks continue to outsell e-books in terms of total revenues and are helping to offset declines from lagging e-book sales. In terms of AI, the CEO declined to discuss specifics of licensing deals, like the one it signed with Microsoft for AI model training, citing NDAs, but stressed that it’s early days for AI licensing, calling it a “fascinating time” in the industry.
Source: HarperCollins CEO touts Spotify’s audiobooks entry, AI’s impact on publishing
Perplexity, the AI-powered search engine, is expanding its publisher program, with the LA Times, Adweek, Mexico News Daily, and a dozen other news outlets signing up. Publishers will share in revenue generated by ads on Perplexity, and receive metrics to track their content’s performance — as long as they don’t withdraw.
Nearly three-year-old GoldState just recently confirmed the sizable song-rights purchases (but not the exact value thereof) via its website. Said website also bills Create Music Group as part of GoldState’s growth portfolio; Flexpoint and Goldstuck injected $165 million into Create over the summer, but the corresponding announcement didn’t mention GoldState by name.
Source: GoldState Music Reportedly Buys $200 Million Worth of Music IP
Daily Mail publisher DMG Media has made a “significant investment” in Prorata.ai, a generative artificial intelligence platform that plans to share revenue with publishers each time their content is used to answer a user query. The deal gives Prorata access to DMG Media’s content, which includes the archives of the Mail, Mail Online, Metro, the i and New Scientist.
Source: DMG Media invests in publisher-friendly generative AI start-up Prorata
Promise says it will produce films and TV shows and “pioneer new formats, empowering both gen AI artists and established Hollywood talent to bring ambitious, creative visions to life.” A key piece of the startup’s business model is proprietary software that will facilitate “a reimagined production process.” The company’s trio of founders have digital-media bona fides.
Spotify cranked up the volume with another strong quarter, packing on 6 million paying subscribers globally in Q3 and issuing an upbeat forecast for the year-end quarter. Spotify gained 14 million total monthly active users (free and paid) to stand at 640 million at the end of Q3. Premium subs stood at 252 million, with growth in the quarter across all regions and “outperformance” led by Europe and Latin America, the company said.
Source: Spotify Tops Q3 Forecasts, Reaches 252 Million Premium Subscribers as Revenue Climbs 19%
Blackstone’s Hipgnosis has successfully completed a $1.47 billion music rights asset-backed securities transaction (i.e. bond offering). The ABS deal, referred to as Lyra 24-2, sees investment giant Blackstone raise $1.47 billion in debt financing backed by royalties from the 45,000-song Hipgnosis Songs Fund portfolio it acquired in July. Blackstone acquired Hipgnosis Songs Fund‘s assets from HSF’s then-public shareholders in a transaction worth USD $1.584 billion.
Source: Blackstone’s Hipgnosis closes $1.47bn asset-backed securities transaction
Perplexity is finalizing a new funding round that would value it at $9 billion—triple its valuation from just a few months ago—the latest sign of continued investor excitement for artificial intelligence startups. The funding round would turn Perplexity into one of the most valuable young AI startups to emerge out of the generative AI boom. It was valued at just $520 million at the start of this year.
Source: AI Startup Perplexity to Triple Valuation to $9 Billion in New Funding Round
While Shamrock doesn’t confirm that it will be looking to make acquisitions in the music industry specifically via the new funds, it did say that it will focus on “buyout and later-stage growth equity investments in middle market companies” across its target sectors. Shamrock’s target sectors include: media, entertainment, content, communication, sports, marketing, and education.