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From $ 400 million downtown copyright sale to Tencent’s troubles in China, it’s MBW’s weekly roundup

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.

The music industry is used to nine-digit acquisitions taking place these days. But the pile of money that hit our headlines on Monday (April 26th) was enough to shock even the most die-hard money moguls in the industry.

Almost $ 800 million changed hands in six hours through two announcements: (i) Hasbro is selling Entertainment One Music (eOne Music) to Blackstone for $ 385 million in cash; and (ii) Concord bought Downtown’s music copyright catalog for $ 400 million (a number later corroborated by a report in the Wall Street Journal).

Meanwhile, Goldman Sachs, through its Music In The Air report, has upgraded Universal Music Group’s valuation from EUR 30 billion to EUR 44 billion. The latter number is roughly equivalent to $ 53 billion at current exchange rates.

The past five days have also taught us that Tencent could be fined $ 1.5 billion by China’s State Market Regulator (SAMR), while Spotify’s premium global subscriber base grew to 158 million in the first quarter.

Here is a summary …

1) CONCORD PURCHASES OWN MUSIC COPYRIGHT CATALOG FROM DOWNTOWN FOR AROUND 400 MILLION USD

Concord was one of the largest funders in the global music industry in 2020, injecting over $ 100 million twice – once to acquire a controlling stake in Pulse Music Group and then again to create a catalog from hit US band Imagine Dragons to buy.

By comparison, 2021 has been relatively quiet for Concord’s dealmaking team … until now.

On Monday (April 26), it was confirmed that a Concord subsidiary had acquired 145,000 copyrights from Downtown, New York. MBW believes this is a $ 400 million deal.

2) BLACKSTONE BUYS A MUSIC FROM HASBRO IN $ 385M CASH DEAL

Financial giant Blackstone is on the verge of acquiring a large bundle of music rights.

Hasbro has confirmed that it has entered into a definitive agreement to sell Entertainment One Music (eOne Music) to Blackstone-controlled companies for USD 385 million in cash.

The transaction is expected to close in the second or third quarter of 2021.

The deal will expand a portfolio of music companies under Blackstone, which includes music rights group SESAC.

Photo Credit: Giorgio Found3) GOLDMAN SACHS: UNIVERSAL IS WORTH OVER $ 50 BILLION, AND REVENUE FOR GLOBAL MUSIC STREAMING IS RISING $ 3 BILLION THIS YEAR

If there is one report from the music industry that sets industry expectations more than anyone today, it is Goldman Sachs’ Music In The Air.

The financial firm released its latest update on the paper received from MBW this week.

Goldman Sachs has increased the valuation of the Universal Music Group from € 30 billion to € 44 billion through the new Music In The Air. The latter number is roughly equivalent to $ 53 billion at current exchange rates.

4) TENCENT COULD FINE US $ 1.5B and Forced to Sell Two Music Apps in China (Report)

Tencent and its majority-owned subsidiary Tencent Music Entertainment (TME) face a possible crackdown on China as part of antitrust action by the country’s regulators.

China’s State Market Regulator (SAMR) is said to be an example for Tencent, and the company should face a fine of at least 10 billion yuan ($ 1.54 billion) as a result, according to a new report from Reuters.

Tencent is being raked over the coals for “anti-competitive practices in some of its companies,” a Reuters source says, “with a particular focus on streaming music.”

Photo credit: sdx15 / Shutterstock5) SPOTIFY SUBSCRIPTIONS THAT GROW ONLY 2% TO 158M IN Q1

Spotify released its financial results for the first quarter of 2021 on Wednesday (April 28), revealing that its global premium subscriber base had grown to 158 million in the quarter ended March 31.

That was 21% more than in the previous year, but only 2% or 3 million subscribers more than the 155 million SPOT had at the end of the previous quarter (4th quarter 2020).

The company’s total monthly active users (MAUs) increased 24% year over year to 356 million in the first quarter of 2021 and 3% year over year.

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.

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