Today (February 11), the UK’s Competition and Markets Authority (CMA) has confirmed its provisional decision over Sony‘s $430 million buyout of AWAL – and it’s given the deal the green light. The approval concludes a months-long investigation into SME’s acquisition of AWAL from Kobalt Music Group in early 2021.
Source: Sony Music’s $430m buyout of AWAL provisionally cleared by UK competition watchdog
Virtual real estate is big business, and it’s getting more and more attention from the music industry. Today (February 10), we learn of yet another metaverse firm closing a significant funding round, and it’s attracted investment from a few superstar artists, too. That company is Everyrealm (rebranded from Republic Realm), which describes itself as “one of the most active investors in and developers of the metaverse ecosystem”.
The independent artist sector is growing fast, and an increasing number of firms are giving artists access to capital in the form of advances. One such company is music funding platform beatBread, which has just completed a $34 million seed round led by Fintech-focused venture capital firm, Deciens Capital.
Announced today (February 10), UMPG says that it has struck an “historic, comprehensive worldwide agreement for the catalog of one of the most commercially successful and critically-acclaimed songwriters of the last half-century”. The catalog features the entirety of both Sting’s solo works, as well as those with The Police.
While time-spent streaming may have lost some momentum last year as pandemic lockdowns lifted, consumer spending on streaming video nevertheless jumped 20%, to $25.3 billion, last year, according to estimates from DEG: The Digital Entertainment Group.
Source: Digital News Daily: Consumer Spend On Streaming Up 20%, All Other Home Entertainment Down Last Year
AT&T and Discovery have gained clearance for their much-anticipated deal to spin off WarnerMedia so it can merge with Discovery, a deal that has already been approved in Europe. The approval of Discovery shareholders is the last barrier to the deal moving forward.
Source: AT&T, Discovery Gain U.S. Clearance for WarnerMedia Deal
Spotify stock has lost an astounding 50% of its value over the past year alone, a dip of more than $32 billion in market cap. The exact reasons are difficult to pinpoint, though both internal and external headwinds are broadly driving the plunge. Since November, SPOT has been dropping precipitously, with broader economic concerns and anticipated rate hikes by the Federal Reserve dragging Spotify into the red.
Source: Spotify Stock Has Lost 50% of Its Value In the Past Year
Source: Disney+ Subscription Growth Has Slumped After a Pandemic Surge. Investors Watch for a Bounce Back.
WMG says that the quarter included an additional week, primarily reflected in its recorded music streaming revenue. Additionally, according to WMG, the quarter included the impact of a new deal with an unnamed digital partner, which it says, impacted its Recorded Music streaming revenue. Adjusted for the benefit of the additional week and the impact of the new deal with WMG’s unnamed digital partner, Recorded Music revenue was up 15.9% (or 17.4% in constant currency).
Source: Warner Music Group generated nearly $1bn from streaming last quarter
In the second half of October, KKR – via its new Chord Music venture – acquired a large portfolio of rights from Kobalt for $1.1 billion. Now, KKR Credit Advisors is using a catalog of 65,000 songs – including hits from The Weeknd, Stevie Nicks, and Childish Gambino – to sell more than $732 million of asset-backed securities supported by publishing and sound recording royalties.
Source: KKR bought a music catalog from Kobalt for $1.1bn. Now it’s turning it into bonds.