Business News
Page: 109
The authors of a new report that paints a dismal portrait of gender diversity in recording studios are calling on major labels to step up their efforts to hire more women producers and engineers.
Published by Fix the Mix — an initiative launched in 2022 by nonprofit We Are Moving the Needle and official music credits database Jaxsta — the first annual report, created in conjunction with Middle Tennessee State University and Howard University and released Tuesday (April 11), found that women and non-binary people are drastically underrepresented in audio producing and engineering roles in recording studios.
Analyzing 1,128 songs from 2022, the report (Lost In The Mix: An Analysis of Credited Technical Professionals in the Music Industry Highlighting Women and Non-Binary Producers and Engineers Across DSP Playlists, Genres, Awards, and Record Certifications) found that only 16 of the 240 credited producers and engineers (6.7%) on the top 10 most-streamed tracks of 2022 across five major digital service providers (Spotify, Apple Music, Amazon Music, YouTube and TikTok) were women and non-binary people.
The levels of representation varied across genres. Among the top 50 songs across 14 genres examined in the report, metal had the lowest percentage of women and non-binary people credited in key technical roles at 0.0%, with rap and Christian & gospel coming in at 0.7% and 0.8%, respectively. On the other end of the spectrum, electronic stands out for its relatively high representation of women and non-binary people in producer roles, accounting for 17.6% of all producer credits on the top 50 songs of 2022, while folk & Americana was close behind at 16.4%.
“While this research notes the genres that have the best and worst gender representations, it is important to note that every genre needs improvement in representation of women and non-binary people,” said report co-author Beverly Keel, dean of Middle Tennessee State University’s College of Media and Entertainment, co-founder of Change the Conversation and co-founder of Nashville Music Equality. “It is difficult to fathom that representation remains so pitifully low in 2023. In any other industry, these low percentages of the genres that have the best gender representation would be an embarrassment, so I hope these ‘high achievers’ are not resting on their laurels.”
Analyzing data from streaming services that report assistant credits, the report also found that women and non-binary people are better represented in assistant roles, which have 12.6% percentage points more women and non-binary people on average than key technical roles. The report suggests that, “while this higher concentration of women and non-binary people in assistant roles may indicate a growing pipeline of these contributors rising into key levels, it could be indicative of a glass ceiling preventing this demographic from an upward trajectory.”
This year’s Grammy Award nominees didn’t fare well in terms of representation either. Of all winning albums in the 28 “best in genre” categories in 2023, 17 credited zero women or non-binary people in the key technical roles of producer and engineer. A total of eight projects listed women and non-binary people as producers (representing 11.5% of all producers) and three projects listed women and non-binary people as engineers (representing 3.9% of all engineers). The total number of women and non-binary people credited in technical roles was 19 out of 249, or just 7.6%. Across the eight Grammy Award categories that honored people in technical roles, only one woman was recognized versus 30 men.
To offer a wider look at the music industry, the report also analyzed the RIAA diamond-certified list (songs that have achieved 10-times-platinum status) and the Spotify “Billions Club” (songs that have received 1 billion streams on the streaming platform). Of the top 50 songs on the RIAA diamond-certified list, there are a total of 248 key technical roles credited. Of those, 224 (98.4%) are filled by men while just 4 (1.6%) are filled by women or non-binary people. Of the four women and non-binary individuals credited, three are producers (two of which were the main artist on the track), while one is an engineer. Among the top 50 songs included on Spotify’s Billions Club, women and non-binary people make up only 2% of key technical roles.
The new report acknowledges that its numbers differ from the “pioneering” research conducted annually by the USC Annenberg Inclusion Initiative, which found that only 2.8% of music industry producers were women in 2022. The Annenberg study uses the Billboard Hot 100 Year-End Charts as a measuring stick, while the Fix the Mix report looked at 757 top-streamed songs, 30 Grammy-winning albums, the top 50 songs on the Spotify Billions Playlist, and the top 50 songs certified diamond by the RIAA.
“Ensuring that there is more gender and racial diversity among music’s creators is not actually a complex problem if you want to solve it,” said co-author Emily Lazar, Grammy Award-winning mastering engineer and founder of We Are Moving The Needle. “The most important step is for artists and record labels to be able to hire from a more diverse pool of producers, mixers and engineers, but it’s exceedingly hard to hire people when you can’t find them. We hope this report will give decision makers the motivation and tools they need to make real change in their hiring practices so we can achieve gender parity in production, engineering and mastering roles.”
The report finishes with a list of recommendations and solutions to address the gender gap, including accurately crediting all technical contributors, diversifying hiring practices, educating the industry, finding and hiring women and non-binary producers and engineers, demanding data transparency, amplifying representation and encouraging active participation, supporting the changemakers and developing forward-facing solutions.
To see genre, streaming service and key role breakdowns, you can check out the full report here.
Branded, the parent and organizer of Asia’s annual All That Matters conference and showcase event, is now part of the Nodwin Gaming family.
Announced Tuesday (April 11), the Singapore subsidiary of Nodwin has acquired a 51% stake in Branded, the full-service live media specialist.
Financial terms weren’t disclosed.
As part of the arrangement, Nodwin, part of Nazara Technologies, will acquire all Branded’s existing event IPs, including All That Matters. Also, Nodwin, one of the world’s leading gaming and esports companies, will “expand its network of international sponsors to grow revenues from its live business as it continues its pursuit to grow as a sports media company” with a focus on esports and gaming, reads a statement unveiling the acquisition.
Branded co-founder and CEO Jasper Donat says both parties will tap into business synergies across APAC and beyond, with a view to expanding on its existing events and IP, and co-creating new properties.
“Over the past few years, Branded has transformed from a live event IP creator and producer to a live media company,” he comments. “We are really excited to become a part of the Nodwin Gaming family and share their vision and commitment to the business of growing media and entertainment and the communities around them.”
Based in Singapore, Branded produces All That Matters, which includes the Music Matters stream and complementary tracks on live entertainment, sponsorship, sports and more. ATM is widely considered the most important music conference in the region, with more than 2,000 guests turning up in a regular year, organizers say. The 2022 program featured guest speakers Universal Music Group Lucian Grainge; Spotify’s global head of editorial Sulinna Ong; and TikTok’s global head of music Ole Obermann; and Adam Wilkes, president, AEG Presents Asia Pacific, among others.
“We share very similar synergies be it our common love for gaming, sports, music, esports or entertainment, so this was a near-perfect match,” says Nodwin co-founder and CEO Akshat Rathee, noting Branded’s IP “will add a new dimension to what we already offer.”
On the flip side, Rathee explains, we “will also look at the talented Branded team taking our existing IPs such as Playground, The Premiership, NH7 and others international.”
This year’s ATM celebrates its “coming of age” 18th edition, with a three-day-long industry powwow at Hilton Orchard, which, again, revs up for the Singapore F1 Grand Prix week.
When it comes to the red-hot market for music rights, the only people who may be more important than the buyers and sellers are number crunchers like Nari Matsuura.
The Ottawa, Ontario, native is the partner of Barry Massarsky and founder of the valuation division of their music economics and valuation services practice at Citrin Cooperman, one of just a handful of firms that calculate the future growth rates and discounts essential to determining a music catalog’s market value.
From 2021 to 2022, Matsuura estimates she oversaw 750 catalog valuations totaling $15.5 billion for such clients as Hipgnosis Songs Fund, Primary Wave and Reservoir Media.
But as billions have flooded the music intellectual property market, the practice of valuing catalogs has encountered unexpected controversy, with Massarsky and Matsuura’s team occasionally in the middle. Banks put considerable weight on catalog valuations when determining how much to lend to a buyer, and some question whether Citrin Cooperman’s discount rate — which has not budged since spring 2022 — ignores macroeconomic pressures, such as the rising cost to borrow, that could affect valuations. Lower valuations could lead banks to decrease the amounts they lend overall, which could have a cooling effect on the market. “The reason we did not increase our discount rate along with the rising interest rate environment is because we had originally started at a higher discount rate so that we could accommodate for that rise,” Matsuura says. “We knew that this low interest rate environment was not sustainable in the long term.”
HYBE shares rocketed up 14.9% this week after the K-pop company reached No. 1 on the Billboard Hot 100 with “Like Crazy” by Jimin, a member of the group BTS. Investors could also rejoice that Jimin’s album, FACE, debuted at No. 2 on the Billboard 200. HYBE shares spiked 7.5% on Thursday (April 5) following Jimin’s U.S. chart success and rose another 5.9% on Friday, closing at 217,000 won ($164.85).
“Like Crazy” is an encouraging success for HYBE’s Big Hit Music imprint and the first track by a BTS member’s solo project to top the Hot 100. In fact, Jimin is the first South Korean solo artist with a No. 1 hit on the chart in the U.S. That’s good news for a company that will be without its biggest act for the foreseeable future and which needs to create additional chart successes outside of its home market. News of BTS’s hiatus sent HYBE’s share price down TK% from June TK to TK. Since then, HYBE has reached No. 51 with JIN’s “The Astronaut” and No. 30 with Jimin’s “Set Me Free, Pt. 2.” It has had more success outside of BTS members’ solo projects. Tomorrow X Together’s The Name Chapter: Temptation (EP) reached No. 1 on the Billboard 200 while Seventeen reached No. 4 on the chart with 4th Album Repackage: Sector 17.
HYBE’s share price is up 25.1% year to date.
HYBE was the only stock in the Billboard Global Music Index to see a double-digit increase this week and one of just eight companies to finish in positive territory. Overall, the 20-company index declined 3.1% to 1,224.34 this week. (Year to date, the Billboard Global Music Index is up 4.8%.) On Wall Street, the S&P 500 declined 0.1% to 4,105.02 while the Nasdaq composite dropped 1.1% to 12,087.96.
The index’s most valuable company, Universal Music Group, declined 8.2% to 21.40 euros ($23.53) and is down 5% year to date. Spotify, the second-largest contributor to the index, declined just 0.9% to $132.48 and is up 61% year to date.
TJ Landig was promoted to senior vp of marketing at Warner Records. Based in Los Angeles, he reports to executive vp of marketing & artist development Dionnee Harper. Among other duties, Landig manages the labels’ partnership with 88rising. He can be reached at tj.landig@warnerrecords.com.
Pete Nash joined Primary Talent International as a partner, effective immediately. Nash is the eighth partner to join the company since it regained its independence from CAA in March via a management-led buyout. Nash joined ICM in 2020 and worked closely with the Primary Talent team until CAA’s acquisition of ICM in June 2022. Nash brings clients Kings of Leon, Pet Shop Boys, Regina Spektor, Steve Winwood and Travis to the agency.
Roberto Neri joined Believe as CEO of Believe Publishing following the company’s acquisition of Sentric Music Group in March. Along with Sentric founder/CEO Chris Meehan, Neri will “build a service for songwriters and publishers, in a way that is both innovative and complementary with Believe’s core recorded music offering,” according to Neri’s post on LinkedIn announcing his hire. He was most recently CEO at Utopia Music Services, Sentric’s former parent company.
Elsewhere at Believe, the company’s U.K. office announced several promotions. They include Malena Wolfer, upped from head of artist services to director of artist services; Ben Rimmer, elevated from label & artist solutions director, Believe UK to regional director label & artist solutions, Believe UK & Northern Europe; and Panos Polimatidis, promoted from head of artist relations to head of label & artist solutions. Wolfer will focus on high-profile signings and partnerships and explore joint venture opportunities, Rimmer will help grow Believe’s operations in Benelux and Scandinavia, and Polimatidis will be responsible for business development across both the label and artist distribution divisions while also overseeing the client relationship management team. Wolfer and Rimmer will report to Believe UK managing director Alex Kennedy while Polimatidis will report to Rimmer.
Leslie Rosales joined Rostrum Records as head of marketing. In the role, she will develop and lead marketing plans for the independent label — creating marketing opportunities across all digital service providers, securing brand partnerships and partnering with creative teams to develop content that supports artist and label goals. Rosales, who will report to Rostrum Records president Erika Montes, joins Rostrum from High Standardz, where she will continue as a consultant for the label’s emerging artists, including Coco Jones and Lady London. She can be reached at leslie@rostrumrecords.com.
Sofia Ilyas was named chief community officer at The Beatport Group, where she will oversee the company’s diversity, inclusion and social action efforts. She will also lead corporate communications, spearhead the strategy for emerging growth markets and manage Beatport’s partnerships with DJ and product community organizations globally. She most recently served as a director at headphone company Nura. Ilyas will be based out of Beatport’s London office and can be reached at sofia.ilyas@beatport.com.
Mark Collen has departed his role as executive vp of international operations at Sony Music to launch a new consultancy firm called Night Manager Entertainment. The new firm will offer strategic leadership and international marketing consulting to clients across the music industry. Collen can be reached at mark@nightmanager-entertainment.com.
The Country Music Association (CMA) promoted four employees: Tiffany Kerns to senior vp of industry relations & philanthropy, Catharine McNelly to vp of communications, Ben Balch to senior director of accounting & financial planning, and Michael Farris to senior director of business strategy & insights. Among other duties, Kerns will continue overseeing the direction and management of CMA membership including operations, programming, events and the organization’s newly launched membership structure; McNelly will take on a greater strategic role with communications and talent relations efforts across all of CMA’s events, programs and initiatives; Balch will continue to oversee reporting and financial standing for both CMA and the CMA Foundation; and Farris will lead the ticketing, data architecture and insights teams and serve as the lead ticketing strategist for all CMA events. Kerns can be reached at tkerns@cmaworld.com, McNelly can be reached at cmcnelly@cmaworld.com, Balch can be reached at bbalch@cmaworld.com and Farris can be reached at mfarris@cmaworld.com.
Anna Pittman was hired as vp of artist development at Warner Music Nashville. Pittman previously served as an artist development and marketing consultant for Warner Music Group and, prior to that, worked at Q Prime Artist Management for over 14 years.
FreshTracks Music UK, a new MCPS Production Music publisher, launched with John Clifford — former global head of BMG Production Music and managing director U.K. at Universal Music Publishing — serving as managing director. In the role, Clifford will be responsible for building the Martin Nedved-founded company’s U.K. team and label partners while continuing to run his consultancy business, True Road Music. Along with its own repertoire, FreshTracks Music UK will sub-publish select production music from international labels, expanding the wider FreshTracks Music network that currently operates in 10 European countries. Clifford can be reached at john.clifford@freshtracksmusic.co.uk.
Oak View Group (OVG) promoted Drew Gershenson to vp of content for Greater Palm Springs’ Acrisure Arena and vp of OVG’s Southwest division. Gershenson joined OVG in December 2021 and previously served as director of booking for Acrisure Arena. He will report to John Page, senior vp of Acrisure Arena, the Coachella Valley Firebirds and OVG360 Facilities. In his new role, Gershenson will continue to lead the day-to-day programming for the Acrisure Arena and support other OVG-managed properties including Snapdragon Stadium in San Diego, Mullett Arena in Tempe and Tahoe Blue Arena, which is scheduled to open this summer in South Lake Tahoe.
Mike Reynolds and Norman Jacob launched MNJR, a new full-service artist and label management group based in Nashville where they will both serve as managing partners. The firm launches with a roster that includes The Mavericks and the solo career of the group’s frontman, Raul Malo, as well as their label imprint Mono Mundo Recordings; alt-country group 49 Winchester; and emerging artist McKinley James. The MNJR team at launch also includes Rudy Newman, who will serve as operations manager. Reynolds can be reached at mreynolds@mnjr.co, Jacob can be reached at norman@mnjr.co and Newman can be reached at rudy@mnjr.co.
Marni Greenberg joined Sofar Sounds as vp of communications. She was most recently head of music communications at YouTube, where she worked for six years.
Amy Van-Baaren was promoted to the newly-created role of chief impact and culture officer at Resident Advisor; her previous title was head of community. In her new role, Van-Baaren will continue overseeing the company’s philanthropic initiatives while overseeing the internal company culture, community partnerships and Resident Advisor’s non-profit jobs board, Doors Open. She can be reached at avb@ra.co.
Josh Miely was promoted to vp of content design and development at the National Association of Broadcasters (NAB), effective April 27. In his new role, Miely will lead the design, development and delivery of content programming for NAB Show events, while also supporting content and program development efforts for virtual events on NAB Amplify, as well as regional and community-based events for the organization. He’ll report to NAB executive vp/managing director, global connections and events Chris Brown. Miely was previously director of member experience, industry affairs.
Leading livestreaming firm Bulldog DM hired Gilad Gershoni as its new chief strategy officer. Prior to joining Bulldog DM, Gershoni served as Twitter’s live video specialist and as senior live streaming producer at MLB Advanced Media. Gershoni will work closely with Bulldog DM’s founder/CEO John Petrocelli, COO Simon Rust Lamb and chief technology officer Peter Kahn to deliver cutting-edge solutions that meet the needs of Bulldog DM’s clients. He can be reached at gilad@bulldogdm.com.
Megan Kleinschmidt was hired as director of regional promotion at Monument Records. She joins the company from Universal Music Group, where she worked on the Capitol Nashville promotion team. In her new role, she will be responsible for the West Coast, where she’ll represent the full Monument roster.
Southern California music festival Desert Daze launched the record label Desert Daze Sound in partnership with Partisan Records, which will distribute releases on the imprint; Desert Daze’s Phil Pirrone will lead the label’s curation. The first release on the label will be Zango, the first album in nearly 40 years from “Zamrock” legends (and Desert Daze veterans) WITCH, which is set for release on June 2. The label will additionally put out a vinyl compilation series titled LIVE @ Desert Daze!
Financing and investment company Cutting Edge Media Music acquired the full music catalog of United Kingdom-based media company First Score Music. The acquisition gives Cutting Edge complete master and publishing rights to over 75 film scores, including original music rights to films from Andy Serkis and Jonathan Cavendish‘s Imaginarium Productions. This includes Imaginarium’s upcoming animated version of George Orwell’s Animal Farm as well as its Taika Waititi-directed film Next Goal Wins with a score by Michael Giacchino. The catalog also includes scores by composers such as Carter Burwell, Christophe Beck, Hildur Guðnadóttir, David Newman and Rachel Portman for films including Sicario: Day of the Soldado, Three Billboards Outside Ebbing Missouri, Midway and Greenland.
Atlantic Records formed a joint venture with TAG Music, a new record label founded by artist-turned-executive Gabe Saporta (Cobra Starship, Midtown). The first releases under the deal include the singles “Nosebleed” from Los Angeles-based singer Sophie Powers (released March 31) and “Red Is My Favorite Color” from emo alt-rock artist Jules Is Dead in April.
China-based streaming service NetEase Cloud Music renewed its deal with independent Asian “Mandopop” label Rock Records to distribute both its back catalog and upcoming releases in China. Under the agreement, NetEase and Rock Records will continue collaborating to promote Rock Records artists and content; the new deal also “extends the strategic cooperation towards more in-depth initiatives on copyright cooperation between the two parties,” according to a press release, including the rights to sublicense Rock Records music for various uses including third-party applications, website background music and smart devices. Founded in 1980, Rock Records is home to popular artists including Tayu Lo, Jonathan Lee and Wakin Chau.
Symphonic announced a partnership with Boston-based music technology company Formless that will see Symphonic integrate Formless’ SHARE Protocol for blockchain technology. The protocol will roll out to a select group of Symphonic clients who express an interest in Web3. Artists using the technology will be able to control access terms to their music, including streaming price, and receive payments instantly while splitting royalties with collaborators and fans.
PayPal and Live Nation unveiled a multi-year partnership naming PayPal as the “preferred payments partner” of Ticketmaster, according to a press release. Under the deal, fans will be able to pay with PayPal, PayPal Pay Later products and Venmo across the Ticketmaster platform. PayPal Braintree will also become Ticketmaster’s primary global payment processor, speeding up the checkout process while giving fans access to event add-ons like merchandise and parking for purchase. The partnership also entails an “expanded global marketing program to drive broad engagement and fan loyalty through experiences and offers,” including by rewarding a limited number of fans who use PayPal and Venmo to pay for festivals like Bonnaroo, BottleRock and Lollapalooza with ticket discounts and “Cashless credits” to those events.
Despite a challenging economy and the lingering effect of the pandemic on the concert business, the German collecting society GEMA took in 1.178 billion euros ($1.25 billion) in revenue in 2022, a 13% increase over 2021. This year, for the first time, the organization’s distributions will exceed a billion euros.
“This is a record result,” said GEMA CEO Harald Heker in a statement. “The resurgence of events and music performances means a relief for our members after three hard years.”
Some of this increase reflects the continued growth of streaming, but some of it is due to the recovery from the pandemic.
GEMA collections from public music performances, its biggest category of revenue, grew to 357.5 million euros ($381.6 million), up 43.7% over 2021 (but still below the 407.4 million euro high of 2019). Online, the organization’s third biggest category, grew to 301.3 million euros ($321.6 million), up 26.5% over 2021. (Radio and television collections, the second biggest category of revenue, dropped 3.9% to 325.1 million euros [$347 million].) The amounts of money GEMA collects from levies on computers and items with blank memory, as well as from physical goods, both declined – by 27.7% and 9.2%, respectively.
GEMA is one of the first international collecting societies to announce its 2022 results, but its counterparts are expected to report good years as well, for some of the same reasons. Last month, ASCAP reported a 14% increase in collections over 2021, to $1.52 billion. (Collecting societies report their results differently, so exact comparisons can be difficult.) While organizations struggled to maintain revenue during the pandemic, the comeback of the concert business – and public life in general – should now boost all of them.
GEMA’s good news comes at an interesting time for the organization. As the 2014 EU directive on collecting societies continues to push them into competition with one another online, GEMA has emerged as one of the bigger and more successful organizations. In addition to its own operations, GEMA operates the online licensing and collecting hub ICE with STIM (Sweden) and PRS for Music (UK). Heker has led GEMA since 2007 and is expected to retire by the end of the year, and there is talk that GEMA will name its next CEO by summer.
Like many collecting societies and organizations of publishers and songwriters, GEMA believes that music-streaming is unfair to their side of the business, and rewards labels and artists disproportionately.
“The trend towards streaming must not lead to authors’ rights being undermined,” Heker said in the same statement. “GEMA’s most important task is and remains to stand up for fair remuneration in all areas and thus at the same time to secure conditions for a lively and diverse musical and cultural landscape.”
Lizzo and Amazon Studios have reached an extension on the singer’s first-look deal after the scorching success of her Emmy Award-winning show Watch Out for the Big Grrrls. Produced by Lizzo’s production company, Lizzo Bangers, and Amazon Studios, Watch Out for the Big Grrls notched three Emmys in categories including directing and picture editing and became the first streaming series to win the outstanding competition program category.
“Lizzo is one of the most exciting, creative, joyful artists in the industry, and the impact of her Emmy award-winning series Lizzo’s Watch Out for the Big Grrrls exceeded our every expectation,” said Vernon Sanders, head of television, Amazon and MGM Studios. “We are excited to continue our relationship with Lizzo and can’t wait for our global Prime Video audience to experience what’s next.”
“I’m thrilled to continue this partnership with the Amazon team after an incredible experience on season one of Watch Out for the Big Grrrls,” said Lizzo. “I’ve witnessed lives change through this show, and I’m grateful for the opportunity to continue making space for even more Big Grrrls around the world to shine and break down barriers across this industry.”
After a successful first season, Lizzo is now searching for women who can sing and dance onstage. Those interested in applying can sign up here for casting. Along with nabbing Emmys, Watch Out for the Big Grrrls also received a fistful of wins at the Critics Choice Real TV Awards, Costume Designers Guild Awards, Hollywood Critics Association Television Awards, NAACP Image Awards and Producers Guild Awards.
WWE and the company that runs Ultimate Fighting Championship will combine to create a $21.4 billion sports entertainment company.
A new publicly traded company will house the UFC and World Wrestling Entertainment brands, with Endeavor Group Holdings Inc. taking a 51% controlling interest in the new company. Existing WWE shareholders will hold a 49% stake.
The companies put the enterprise value of UFC at $12.1 billion and WWE’s value at $9.3 billion.
The new business, which does not yet have a name, will be lead by Endeavor CEO Ari Emanuel. Vince McMahon, executive chairman at WWE, will serve in the same role at the new company. Dana White will continue as president of UFC and Nick Khan will be president at WWE.
“Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity,” McMahon said in a prepared statement Monday.
He also provided some idea of where the focus of the new company will be, saying that it will look to maximize the value of combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster their brands.
Ties already exists talent wise between WWE and UFC, with stars such as Brock Lesnar and Ronda Rousey crossing over between the two businesses.
The deal between Endeavor and WWE catapults WWE into a new era, after functioning as a family-run business for decades. McMahon purchased Capitol Wrestling from his father in 1982, and took the regional wrestling business to a national audience with the likes of wrestling stars such as Andre the Giant, Hulk Hogan and Dwayne “The Rock” Johnson. The company, which changed its name to World Wrestling Federation and later World Wrestling Entertainment, hosted its first WrestleMania in 1985.
McMahon, in an interview with CNBC, addressed the notion that there was doubt among some WWE fans and industry experts that he would ever make a deal for the business. “It’s the right time to do the right thing. And it’s the next evolution of WWE,” he said.
The announcement of the WWE sale arrives after McMahon, the founder and majority shareholder of WWE, returned to the company in January and said that it could be up for sale.
Rumors swirled about who would possibly be interested in buying WWE, with Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund all in the mix.
McMahon acknowledged to CNBC that there were several suitors for WWE, but that combining with Endeavor is the right move.
“It makes all the sense in the world for all these synergies that we have to extract all of the value that we can out of the marketplace,” he explained.
Media industry analysts viewed WWE as an attractive target given its global reach and loyal fanbase, which includes everyone from minors to seniors and a wide range of incomes.
The company held its marquee event, WrestleMania, over the weekend. Last year, WWE booked revenue of $1.3 billion.
The company is also a social media powerhouse. It surpassed 16 billion social video views in the final quarter of last year. It has nearly 94 million YouTube subscribers and has more than 20 million followers on TikTok. Its female wrestlers comprise five out of the top 15 most followed female athletes in the world, across Facebook, Twitter & Instagram, led by Ronda Rousey with 36.1 million followers.
WWE had more than 7.5 billion digital and social media views in January and February of this year, up 15% from the same time frame a year ago.
The new company plans to trade on the New York Stock Exchange under the “TKO” ticker symbol. Its board will have 11 members, with six being appointed by Endeavor and five being appointed by WWE.
“We like the assets of UFC and also WWE in a world where linear TV is losing market share to streaming, thus live sport content is in high demand,” wrote Jeffries analyst Randal Konik said in a note to clients.
The transaction, which was approved by the boards of Endeavor and WWE, is targeted to close in the second half of the year. It still needs regulatory approval.
Shares of World Wrestling Entertainment Inc., based in Stamford, Connecticut, are up 33% this year, but fell 5% at the opening bell Monday. Shares of Endeavor, based in Beverly Hills, California, slipped less than 1%.
Billboard‘s Global Music Index rose 4.2% this week to 1,263.70, its high level in six weeks, as 14 of the 20 stocks in the index were in positive territory. The index’s most valuable companies were among the gainers: Universal Music Group was up 2.1%, Spotify improved 4.1%, and Live Nation climbed 6.1%.
With additional help from Warner Music Group (+5.9%) and Tencent Music Entertainment (+8.1%), the Billboard Global Music Index outperformed the major indexes. The S&P 500 rose 3.5% to 4,109.31 and the Nasdaq composite improved 3.4% to 12,221.91. In the U.K., the FTSE 100 rose 3.1%.
In the first quarter, the Billboard Global Music Index was up 8.2% overall.
Radio company Audacy was the greatest gainer of the week, improving 18.2% to $0.13. In a proxy statement filed March 24, Audacy said it will propose a reverse stock split at the company’s May 24 shareholder meeting. The New York Stock Exchange will initiate a delisting process for stocks that close below $1.00 for 30 consecutive trading days; Audacy’s share price has not exceeded $1.00 since July 5, 2022. A reverse stock split will reduce the number of outstanding shares. Since the value of the company is unaffected by the event, the reverse split will increase the share price.
Elsewhere, Madison Square Garden Entertainment (MSGE) improved 9.6% to $59.07. On Thursday (March 30), MSGE revealed its final plan to separate its live entertainment company from the rest of its businesses. On April 20, the current parent company will be renamed Sphere Entertainment Co. and be comprised of the state-of-the-art Sphere venue, MSG Networks and Tao Group Hospitality. That will leave a pure-play live entertainment company, MSG Entertainment, which includes such venues as Madison Square Garden and Radio City Music Hall.
Competing interests drove SM Entertainment shares higher in February and early March, but the stock has fallen 36.9% in the last three weeks after dropping another 13.1% this week. The K-pop company’s share price started the year at 76,700 won ($58.71) and surged to 114,700 won ($87.79) on Feb. 10 after HYBE acquired a 14.8% stake from SM’s founder, Lee Soo-man. By March 10, when HYBE and Kakao Entertainment were locked in a battle to become SM’s largest shareholder and lead the company’s expansion following its break from Lee, SM shares hit 147,800 ($113.13). Once Kakao Corp. and Kakao Entertainment’s tender offer expired on March 26, the share price plummeted. Still, SM Entertainment shares are up 21.5% year to date.