Welcome to Music Business Worldwide’s weekly recap we make sure you got the top five stories of the past seven days in our headlines. MBW Roundup is backed by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their tour costs.
This week, Universal Music Group’s parent company Vivendi confirmed that it was considering a proposal to divest 60% of the music company from the French company’s corporate ownership and trade UMG on Euronext Amsterdam by the end of 2021.
Meanwhile, Irving Azoff’s Iconic Artists Group has acquired a controlling stake in the Beach Boys’ intellectual property in what is likely a $ 100 million deal.
Elsewhere, UMG and Korea’s Big Hit Entertainment announced details of a “history-writing project” in which the two companies will jointly assemble and debut a new K-pop boy band.
In addition, the Warner Music Group (WMG) has invested a stake in Rotana Music, a Rotana Group company in Saudi Arabia that is considered the largest record label in the Middle East, in an eight-digit acquisition for a minority stake.
A total of 20 DSPs, including Spotify, Apple, and Amazon, have transferred a total of $ 424.38 million in accrued historical royalties to The Mechanical Licensing Collective (MLC).
1) Confirmed: Universal Music Group will go public on Euronext Amsterdam this year
It looks like Universal Music Group will go public this year – in Amsterdam.
UMG parent Vivendi has confirmed that it is considering a proposal to separate 60% of the music company from the French company’s property and to trade UMG on Euronext Amsterdam by the end of 2021.
Arnaud de Puyfontaine and Yannick Bolloré (Vivendis CEO and Chairman of the Supervisory Board, respectively) informed their colleagues about the news on Saturday morning (February 13th).
A new release from Vivendi investors reveals more details. Following the recent sale of UMG shares to a consortium led by Tencent for an enterprise value of 30 billion euros, Vivendi has identified “interests of other investors at potentially higher prices” for shares in Universal.
Vivendi confirms that its management board is now considering a “distribution of 60% of UMG’s share capital to Vivendi shareholders” via a “special dividend” …
2) IRVING AZOFF IS PURCHASING BEACH BOYS RIGHTS WHICH YOU WILL SEE A $ 100 Million Plus Offer
Irving Azoff’s Iconic Artists Group has acquired a controlling interest in the Beach Boys’ intellectual property, including the band’s sound recordings, brand, select musical compositions and memorabilia.
According to a press release, the Beach Boys and their heirs will retain an interest in their fortunes “in order to participate in the upward trend that Iconic expects through active marketing and promotion of the band”.
However, much of the band’s evergreen catalog from the 1960s is still owned by Universal Music Group, which acquired Beach Boys recordings through the $ 1.9 billion buyout of EMI Music in 2012.
Universal’s Bruce Resnikoff told Rolling Stone, “We have the original recordings and the publishing, but our ability to get the best out of this band depends on our ability to work with the band. Iconic will represent the band in a way that I believe will only add value to everyone …
3) BIG HIT AND UNIVERSAL ‘GLOBAL MUSIC HISTORY REWRITE’ WITH A COMMON K-POP LABEL, EXTENDED PARTNERSHIP
Universal Music Group and Korea’s Big Hit Entertainment have announced details of a “history-writing project” in which the two companies will jointly assemble and debut a new K-pop boy band.
The as-yet-undiscovered group’s music will be released under a new Los Angeles-based joint venture record label that Big Hit founded in collaboration with UMG and Geffen Records of the latter.
UMG boss Sir Lucian Grainge says the project will “further accelerate K-Pop as a global cultural phenomenon”.
Members of the K-Pop group are selected as part of a global audition program that Universal and Big Hit say is on the right track in 2022 and is being launched in partnership with a major US media partner.
4) WARNER MUSIC GROUP BUYS MINORITY STAKE IN SAUDI ARABIA’S ROTANA MUSIC
Warner Music Group (WMG) has made an investment in Rotana Music owned by the Rotana Group in Saudi Arabia, considered the largest record label in the Middle East.
The deal – presumably an eight-digit acquisition for a minority stake – will expand WMG’s presence in the Middle East and North Africa (MENA).
Last month, the Wall Street Journal reported, citing people familiar with the matter, that WMG was on the verge of finalizing a deal for a minority stake in Rotana Music that would value the Saudi company “at nearly $ 200 million” …
Photo Credit: Giorgio Found5) SPOTIFY, APPLE, AND OTHER FIGURES $ 424.38 MILLION IN HISTORICAL UNMATCHED ROYALTIES FOR MECHANICAL LICENSING COLLECTIVE
A total of 20 DSPs have transferred a total of $ 424.38 million in accrued historical unmatched royalties to The Mechanical Licensing Collective (MLC) to seek the Music Modernization Act (MMA) limitation of liability for past violations.
These DSPs, including Spotify, Apple Music, Amazon, SoundCloud, and others, also delivered more than 1,800 data files containing more than 1.3 terabytes and nine billion rows of data.
Of that $ 424.38 million, $ 163.3 million was received from Apple and $ 152.2 million from Spotify, while Amazon and Google transferred $ 42.7 million and $ 32.8 million, respectively.
Welcome to Music Business Worldwide’s weekly recap we make sure you got the top five stories of the past seven days in our headlines. MBW Roundup is backed by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their tour costs.Music business worldwide