Finance

Warner Bros. Discovery updated its estimate on restructuring charges related to Discovery’s acquisition of WarnerMedia, and said content impairment and development write-off charges could be up to $3.5 billion — $1 billion more than it previously pegged. The media company made the disclosure in an SEC filing Wednesday. WBD said it “revised certain estimates related to its restructuring and transformation initiatives” that it previously disclosed in October.

Source: Warner Bros. Discovery Says Content Write-Offs Could Be Up to $3.5 Billion, $1 Billion Over Previous Estimate

The investment comes fresh on the heels of Public Pressure’s announcement that its first music and gaming NFT project raked in $2 million within days of its release. The project was launched in partnership with decentralized autonomous organization (DAO) Moonsama, introducing music as a gaming utility for the first time inside the Moonsama gaming metaverse.

Source: Web3 music platform Public Pressure raises $6m led by blockchain-focused investor Scytale

Connect Music, a self-described “US music monetization company that provides distribution and publishing administration services,” has officially kicked off an international expansion initiative with the acquisition of London’s MTX Music. MTX was founded in 2018 by Mike Mills and former Universal Music and Sony Music exec Mike Bartlett. The company provides distribution and/or marketing services to the likes of Judith Owen, Lost Society, Jonathan Antoine, and Calum Foad, to name some.

Source: Connect Music Acquires London’s MTX Music Amid Global Buildout

The Federal Trade Commission on Thursday asked a judge to halt Meta Platforms’ planned acquisition of a virtual-reality startup, a case that represents a shift in U.S. antitrust enforcement and poses a challenge to the Facebook parent’s metaverse strategy. The FTC is seeking an injunction blocking Meta’s planned acquisition of Within Unlimited Inc., the company behind the popular virtual-reality fitness game “Supernatural.”

Source: Judge Hears FTC’s Bid to Block Meta From Acquiring Virtual-Reality App Maker

After record deal-making in 2021, the number and dollar value of M&A in media and telecommunications fell during the past 12 months through November, according to the latest report by PwC. There have been 3,772 deals, a 26% year-over-year drop. The dollar value of M&A totaled $624 billion, an 18% dip, the firm said in its biannual U.S. Deals Outlook.

Source: Media & Telecom M&A Fell In 2022, But It’s A Good Time For The “Well-Capitalized” And The “Bold”

The completion of Concord’s asset-backed bond sale, which has repackaged publishing and recorded royalties from north of one million works, just recently came to light in a formal release from Apollo. Among these works (which are said to be valued at over $4 billion) are releases from R.E.M., Genesis and Phil Collins, Imagine Dragons, Pink Floyd, Creedence Clearwater Revival, Daft Punk, and an array of others.

Source: Concord Officially Completes $1.8 Billion Apollo-Led Bond Sale

There have been a lot of eyes on Hipgnosis Songs Fund (HSF) this year. The UK-listed fund, once the most active acquisitive entity in music rights, has paused its buying of catalogs over the past 12 months, and hasn’t raised any new share capital for rights buyouts during this period. Today (December 8), HSF has announced its half-year results for the six months to end of September 2022, with a number of positive signs, both for HSF investors and for the music rights business at large.

Source: Hipgnosis Songs Fund revenues climb 7.5% YoY, streaming revenues up 15.8% YoY, in most recent half-year period

Many pure-play entertainment companies are facing an “existential threat,” says Peter Csathy, chairman of Creative Media, largely because the pivot toward streaming has yet to be fully realized. “The economics just don’t work,” Csathy adds. “In this streaming-first world, the content budgets are too high. The revenues that come in are too low in a hyper-competitive world where everybody’s chasing the same streaming dollar.”

Source: When the Numbers Don’t Add Up: Recession Fears Dent Hollywood’s Streaming Ambitions

Investors are demanding a change of tune at the London-listed investment vehicle Hipgnosis Songs Fund. The company thrived in an easy-money era of high stock prices and cheap debt, growing through a string of deals, while it attracted a big-name financial backer in Blackstone Inc. But the stock price has tumbled in recent months. A large discount has opened to the net asset value of its holdings, suggesting concern that Hipgnosis may have overpaid for its 65,000-plus song library.

BMG has acquired the catalog of Peter Frampton, the company announced today (Dec. 7). The deal includes his publishing, songwriter, artist and session work revenue streams, as well as his neighboring rights, for the entirety of his career, including massive hits like “Baby I Love Your Way” and “Show Me the Way,” as well as his work with Humble Pie. Terms of the deal were not disclosed.

Source: Peter Frampton Catalog Sold to BMG