Finance

Anyone following the tech sector over the past few years has had no shortage of hyped “next big things” to entertain. In 2019, it was cryptocurrency. In 2020, that expanded to mean anything blockchain or so-called Web3. Last year, it was the metaverse. There are two key reasons investors should pay more attention this time. The first is the velocity at which AI is growing and improving. The second, and arguably more important, factor is the rapid and warm reception AI has received from consumers.

Source: AI Has Its ‘iPhone Moment’

Universal Music Group posted booming results for 2022, with revenues soaring 21.6% to nearly $10.95 billion, driven by streaming. Also in the announcement and the earnings call, the company revealed that it has expanded its project with Tidal to come up with a new economic model for streaming to include Deezer. “Streaming has evolved in a way that undervalues the critical contributions of many artists as well as the engagement of many fans,” Grainge said.

Source: Universal Music Posts Nearly $11 Billion in 2022 Revenue as Company Expands Efforts for ‘New Streaming Model’

B2B streaming company Tuned Global has acquired music technology company Pacemaker and its AI-driven DJ applications. The purchase is significant for Tuned Global’s growth as its first acquisition, expanding the company into new markets. Initially integrated with Spotify before going alone after the streaming giant modified its API rules, Pacemaker holds several patents for its AI-DJ technology and “rightsholder-friendly DJ mix solutions.”

Source: Tuned Global Acquires Pacemaker As AI-DJ Streaming Expands

In January it was reported that Microsoft poured another $10bn in OpenAI the startup behind ChatGPT, on top of an earlier investment of $1bn. A spreadsheet maintained by Pete Flint at NFX, a VC firm, now lists 539 generative-AI startups. Not counting OpenAI, they have so far collectively raised more than $11bn in capital. Mike Volpi of Index Ventures, another VC firm, calls it a “Cambrian explosion.”

Source: Investors are going nuts for ChatGPT-ish artificial intelligence

October of 2021 Lyric unveiled a $500 million catalog fund with Northleaf. Now, the private equity firm has secured “total commitments of approximately $410 million” for its second fund, execs said, made possible by “support from a diverse group of new and existing institutional investors.” Additionally, it indicated that “senior debt financing” accounts for the remainder of the initially mentioned $800 million or so in deployable capital.

Source: Spirit Music Parent Lyric Capital Unveils $800MM Catalog Fund

London-based Hipgnosis Song Management, the “investment adviser” of the publicly traded Hipgnosis Songs Fund, and four-year-old Beatclub announced their tie-up today. Those who utilize the creator marketplace Beatclub – most notably Timbaland (who sold his catalog to HSF in 2019) and Justin Timberlake (who finalized a reportedly $100 million catalog deal with HSM last May) – “will have the ability to sample some of the most iconic songs in the world within the Hipgnosis catalog” moving forward.

Source: Hipgnosis Partners With and Invests In Timbaland’s Beatclub

Five months after announcing that it raised “eight figures” in financing as it doubles down on the Web3 space, Napster says it has acquired Mint Songs, an NFT marketplace that helps music artists build Web3 communities. The acquisition follows Mint Songs’ $4.3 million fundraising from investors including Freestyle Capital and Castle Island Ventures. Mint Songs previously worked with Web3 artists like Gramatik, Mark de Clive-Lowe, and Black Dave to offer exclusive NFT items.

Source: Napster acquires Web3 music startup Mint Songs after eight-figure financing

Paramount Global is again seeking to sell Simon & Schuster, months after the media company’s $2.2 billion deal to sell the book publisher to Penguin Random House collapsed, according to people familiar with the matter. Paramount will court private equity firms as potential buyers of Simon & Schuster because they do not compete with it and would not raise competition concerns with U.S. regulators that led to the demise of the Penguin deal last year, the sources added.

Source: Paramount Global tries again to sell Simon & Schuster -sources

Cutting Edge’s capital raise follows last year’s news that it had partnered with London-based investment firm Blantyre Capital to commit $125 million to acquire film and TV music rights. Cutting Edge says that the funds from last year’s round “has been fully deployed”. The new funds, announced today (February 14), will bolster CEMM’s cash reserves as it invests in music for film, television, video games and more.

Source: After investing $125m over the past year, Cutting Edge secures another $100m to buy film and TV music rights

Investors had celebrated Iger’s surprise return when he took the CEO reins back from Bob Chapek last November. But Wednesday’s earnings call wasn’t exactly a triumphant return. It was a much more sober-minded Iger who took listeners through the existential challenges that Disney and its big media brethren face, proposing tough solutions as it looks to pay down debt amassed from a torrid period of M&A and a massive investment in streaming.

Source: Bob Iger Gets Blunt: Hollywood Can’t Give Up on the Old Until the New Starts Making Real Money