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K-pop giant HYBE purchased 868,948 shares of SM Entertainment, the company behind such acts as aespa and NCT 127, for approximately 104.3 billion won ($78 million) after SM founder Lee Soo-man exercised an option to sell the shares, HYBE announced in a Feb. 28 regulatory filing. The purchase concludes a transaction that briefly created a […]
When Condé Nast announced in January that it was folding the nearly 30-year-old music website Pitchfork into GQ, music fans and journalists decried the downsizing of a revered media outlet that gave voice to a diverse array of music genres, styles and artists that it praised and panned with its decimal system rating scale.
The shake-up also resulted in the departure of another woman from a leadership position in the music industry. Puja Patel, whom Condé Nast named Pitchfork’s first woman editor-in-chief in 2019, was among those laid off after presiding over an expansion both in staff and coverage. A veteran of Spin, which she also ran, and The Village Voice, Patel — the daughter of a Zimbabwean father and Indian mother — advocated for “more conversational and accessible writing,” ensuring that the publication’s tagline of being “the most trusted voice in music” rang true for a wider range of readers. She also empowered her staff to shape that coverage and widen its focus from the once-male-dominated space of indie-rock to include, for instance, regional rap, Latin and urbano music, while also supporting indie’s current generation of stars such as Phoebe Bridgers, Mitski, Adrianne Lenker and HAIM.
In her first interview since leaving Pitchfork, Patel, 38, discusses her impact on the brand and why music journalism is here to stay.
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What were your goals as Pitchfork’s editor-in-chief?
I really knew what I wanted to do with it when I went there, and I think having some security of vision and a strong sense of the legacy of a publication — being able to keep that alive while also growing the thing — is the biggest task of anyone taking on an institution like Pitchfork. But I was mostly excited about taking an incredibly talented staff and [helping build] an even more expansively minded staff.
“I would hang out in my uncle’s records and tapes store while visiting my mom’s family in India. I grew up influenced by the mixtapes he’d make and send to her.”
Krista Schlueter
How did you see the impact of those changes during your time there?
The work of changing a place that is so beloved and such an institution is slow and purposeful. Often when someone new comes in, people expect some kind of bombshell explosive reinvention. The harder and more meaningful version of that is keeping the best parts and changing the parts that can be changed. The staff is very obviously more diverse than it has ever been. The taste on the site — it has gotten weirder and more engaged with popular music. And the readership has also become a lot more inclusive.
What were your ultimate goals for Pitchfork’s growth and evolution?
I wanted Pitchfork to be the destination for the discerning music listener — a place where you could discover an artist, listen to our staff debate and contextualize new releases; hear from the musicians themselves; see them live at one of our shows; and become part of our community online and in person. It was important to me to be deliberate about expanding the scope of our editorial while also advocating for brand expansions in audio, sponsored activations and consumer growth.
“It takes so much work and curation to build a unique festival,” Patel says of Pitchfork’s annual Chicago event. “The lanyards remind me of some of my favorite live-music moments and seeing our vision come to life.”
Krista Schlueter
Indie music is currently more diverse and dominated by women. What role did Pitchfork’s coverage play in that evolution?
I wouldn’t go so far as to say that Pitchfork is the reason why that has happened, but I think we did make a really pointed case in recent years to say, “We’re going to give this artist what might be their first interview for a major publication. And we might also go ahead and book them for the festival.” We’ve heard from labels that they have signed artists based on Pitchfork album reviews and that tickets to shows have sold out once [an act] got Best New Music or once Pitchfork gave a glowing recommendation. Part of the way we curated the festivals during my time at Pitchfork was to give at least one [artist] their first headlining set at a festival. During my time there, that was HAIM, Big Thief, Phoebe Bridgers and Mitski. All folks who are vitally important to the conversation around music right now.
What role will the album review play going forward?
I find that music criticism and, specifically, the role of the album review is so important for anyone who cares about music. Every single day at midnight, we saw an uptick in traffic when we published our new album reviews. They are a way for fans to gauge their own understanding and opinion of how they feel. Beyond that, they contextualize an album against the artist’s own discography, explain the nuances of lyricism or that a [song sounds] intentionally familiar because it’s a callback to some other piece of art. I also really believe that the album review is a way for people to soundboard their own instincts. When they see, in Pitchfork’s case, a score, or they read someone who is talking about how a piece of music makes them feel, it’s a way for them to viscerally say, “I agree” or “I don’t agree” and explore why.
“I saw around 50 shows last year and always hold on to ticket stubs from special shows.”
Krista Schlueter
Why is it important to have a wider and diverse group of people pick Best New Music?
When I started at Pitchfork, I really made the idea of the album review scoring and consideration much more inclusive and collaborative. We would invite the entire staff to listen to an album. Bringing more people and more perspectives into the conversation opens up new windows and lanes to consider the piece of music, which always in my mind made us like it more. That’s not to say that there wasn’t an executive decision made from time to time.
With music publications shuttering or shrinking, does that create more space for independent voices to thrive?
It has been hard to watch the most iconic music publications slowly being pared down more and more. I’ve found a ton of inspiration and joy from the way that younger folks are using social media as a place to make music discovery and discourse accessible to more casual fans — especially as we’re seeing labels encouraging artists to take ownership of their narratives through some of the same formats. And while that sort of push from the music industry makes the industry ostensibly or optically less reliant on a journalist’s viewpoint, I still believe that journalism and arts writing is extremely valuable. At the very least, it acts as a historical record. So much of music right now is repurposed from other music, and knowing what you’re listening to and where it comes from is exceedingly valuable. I really believe that even very good marketing can’t replace very good music journalism.
Krista Schlueter
Who are your must-reads?
I want to shout out Mano Sundaresan’s blog, No Bells, which started as this tiny, friends-talking-about-rap thing but has evolved into a collection of some of the most interesting and spirited young people with a massive curiosity for new music. It’s done with the humor and levity and general alt-counterculture spirit that is missing from so much “capital s” serious writing.
How have you shaped the future of music journalism?
There tends to be a lot of acclaim awarded to people who are the first of their identity to step into some role that has historically been reserved for a certain other kind of person. And, honestly, almost everywhere I worked, I’ve been the first of some kind in my position: the first woman, the first person of color, the first Asian American. In most cases, I’m two of those things, sometimes all three. So you’re proving yourself to the systems that were made with other people in mind, and you are also bending those systems toward the future. You are de facto acting as a representative or a sounding board for people who might be or have felt underrepresented in the past. And just by way of that, you’re also reshaping the industry that you’re a part of.
This article originally appeared in the March 2, 2024 issue of Billboard.
In February, Billy Joel released his first song in 17 years, the emotional “Turn the Lights Back On.” But for his publicist, Claire Mercuri, there is never an off cycle with the 74-year-old legend.
Mercuri, who founded Claire Mercuri Public Relations in 2010, has represented Joel for more than 25 years. They began working together when Mercuri was at Columbia Records, where she rose to vp of media and also executed campaigns for veteran stars such as Bob Dylan, Bette Midler and Ricky Martin. In addition to Joel, her clients include his ex-wife, supermodel Christie Brinkley, and their daughter, Alexa Ray, as well as actresses Lorraine Bracco and Elizabeth Hurley.
A Brooklyn native, Mercuri scored her first music industry job in the 1990s as a personal assistant to KISS’ Gene Simmons and Paul Stanley. “They were wonderful to me — and quite generous,” she says. “I still love them both.”
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Developing long-term relationships with clients past and present is part of what makes the job so meaningful. Joel manages himself, and Mercuri is part of his tight inner circle, many of whom have also been with him for decades. “There is no other artist quite like Billy Joel… [He] remains very much at the top of his game,” she says. “Music should enrich your soul and challenge you to think in new ways. Billy has done this as well or better than any other artist I know.”
Now, as the targeted press campaign Mercuri orchestrated around Joel’s new single — which included stops at The Howard Stern Show and The Late Show With Stephen Colbert — wanes, the next several months promise to keep her busy. On April 14, CBS will air a special capturing Joel’s 100th consecutive performance at New York’s Madison Square Garden as he nears the end of his historic 10-year run of monthly shows at the vaunted venue this summer. Alongside those performances, Joel will co-headline stadium shows with buddies like Sting, Rod Stewart and Stevie Nicks. As Mercuri says, “Billy is always in the conversation.”
This story originally appeared in the March 2, 2024, issue of Billboard.
Irving Azoff’s Iconic Artists Group continues to partner with artists with deep-bench catalogs — announcing on Tuesday (March 5) a deal with Roxy Music frontman Bryan Ferry to acquire half of the suave auteur’s sound recording, publishing, and name, image and likeness rights. The company, which did not disclose financial details of the deal, said it will “develop and expand the renowned artist’s musical legacy to new generations of fans.”
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The deal spans Ferry’s work with glam-turned-sophisti-pop band Roxy Music and his expansive solo career, which combined has yielded 24 albums over 50-plus years. The through-line with Roxy Music is that Ferry wrote almost every one of the group’s songs, from 1972’s art-rock debut to the group’s eighth and final album, the pop-sheened Avalon, at times co-writing with fellow longtime members Andy Mackay and Phil Manzanera. The band’s best known songs include “Love Is the Drug,” “All I Want Is You,” “Virginia Plain,” “Dance Away,” “Avalon” and radio staple “More Than This.”
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Ferry’s solo career ran parallel with his band work, starting with 1973’s These Foolish Things all the way to 2018’s Bitter-Sweet. In the middle there he scored his only UK No. 1 with 1985’s Boys and Girls, which also features one Ferry’s biggest hits in America, “Slave to Love.” (The track was further immortalized when he performed it at Live Aid, with an assist from David Gilmour.)
As for accolades, Ferry was inducted into the Rock and Roll Hall of Fame in 2019 as a member of Roxy Music, and he was awarded a CBE in 2011 for his contribution to British music. Iconic president Jimmy Edwards calls Ferry a “true musical pioneer who blended art, fashion, and rock & roll into a captivating and enduring sound.”
At Iconic, which was co-founded by Azoff and Oliver Chastan, Ferry joins a hall-of-fame roster of acts that includes Rod Stewart, The Beach Boys, Cher, Linda Ronstadt, Joe Cocker and CSN bandmates David Crosby, Stephen Stills and Graham Nash, among others.
Ferry said, “I’m pleased to be working with everyone at Iconic on finding new ways to share my music with the world. I’m excited to see what possibilities unfold.”
SESAC Music Group today (March 5) announced a deal with the Korean Society of Composers, Authors and Publishers (KOSCAP) that calls for KOSCAP to represent SESAC’s repertoire in Korea and for SESAC-owned Audiam to administer KOSCAP’s publishing rights in the U.S.
The deal makes SESAC one of the first big collective management organizations (CMOs) to move its rights out of the established Korea Music Copyright Association (KOMCA) to KOSCAP, a competitor that the government approved in 2014 to increase competition in the market. KOSCAP will represent SESAC’s online and offline performing rights in Korea, and the catalog of the Harry Fox Agency, the SESAC Music Group’s mechanical rights entity, will follow next year.
The Audiam deal calls for that company, which the SESAC Music Group bought in 2021, to collect performing, mechanical and other audiovisual rights in the U.S. on behalf of KOSCAP.
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Charles Park
Although this might seem like just another deal in the alphabet soup world of collective rights management, it highlights the growing competition among CMOs – and how that is leading to different kinds of international deals. In October, SESAC made a deal to have its offline performing rights in Italy managed by Soundreef, a private company just over a decade old, instead of the traditional society Italian collecting society, SIAE.
“Why did we switch?” Alex Wolf, president of international of the SESAC Music Group, told Billboard about the KOSCAP deal. “We’re convinced about the competence and the responsiveness of the management and we’re convinced that we will increase our revenues. This is a bet on the future.”
Just a decade ago, only a few markets had competition among CMOs, which didn’t compete with one another across borders. Since 2014, though, when the European Union passed the Directive on collective management of copyright and related rights and multi-territorial licensing, European societies have had to compete for online rights in the EU, and many other countries have opened up as well. This has led to competition among established organizations, as well as new companies like Soundreef – both to represent writers and publishers and to make deals with foreign CMOs.
“It’s a great honor to partner with SESAC, a global leader with a world-class catalog and one of the premier Performing Rights Management organizations in the world, along with Audiam’s innovative technology to administer our catalog in the US,” KOSCAP COO Charles Park said in the press release announcing the deal.
LONDON — Hipgnosis Songs Fund has cut the value of its portfolio by more than a quarter and told investors that it does not intend to recommence paying dividends “for the foreseeable future” as it focuses on paying down debts.
The London-listed fund, which owns full or partial rights to the song catalogs of Red Hot Chili Peppers, Neil Young, Justin Bieber and Blondie, among many others, announced the updated valuation on Monday (March 4).
It follows a detailed review of the company’s portfolio “on a bottom-up basis” by Shot Tower, which was appointed following a public fallout between the firm’s board and its investment advisor, the Merck Mercuriadis-led Hipgnosis Song Management (HSM), over the fund’s worth.
In a financial filing, Hipgnosis Songs Fund (HSF) said Shot Tower’s preliminary report estimates the fair market value of the company’s portfolio at between $1.8 billion and $2.06 billion (and $1.74 billion and $2 billion after deducting contingent catalog bonuses of just under $60 million).
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Shot Tower gave a midpoint valuation of $1.93 billion, reflecting a multiple of 15.9x net royalty income, which is around 26% lower than the valuation of September 2023.
Hipgnosis Songs Fund said the new valuation was based on a range of criteria, including whether a catalog was made up of publisher, writer, producer or artist’s share of rights royalties. Shot Tower’s report also took into account royalty income streams and administration rights or copyrights due to be returned to the firm in future years, the fund said.
The firm’s cash net revenue (after third party royalty reductions and administration expenses) was $121.7 million for the 12-month royalty statement period ended June 30, 2023, according to Shot Tower’s analysis.
When adjusted solely for the new valuation, the company’s operative net asset value would be approximately $1.17 (92p) per share, compared to the last reported net asset value of $1.7392 (137p) per share at the end of September, the firm reported.
As a result of the decrease, the board said that it would be using free cashflow to pay down debt “and, therefore, does not intend to recommence paying dividends for the foreseeable future.”
In a statement accompanying the filing, Hipgnosis Songs Fund chairman Robert Naylor said the company’s newly constituted board “is making good progress with the due diligence work” underpinning its ongoing strategic review and that the board “remains focused on identifying all options to deliver shareholder value.”
Hipgnosis Songs Fund’s share price initially fell by 11% to £0.56 on Monday morning following the news.
The slashed valuation represents another blow for HSF, which underwent a turbulent end to 2023 and just-as-rocky start to the year.
In October, shareholders voted against the music royalties fund’s proposed $440 million deal to sell 29 catalogues to Hipgnosis Songs Capital – a partnership between investment giant Blackstone and the fund’s investment adviser Hipgnosis Song Management – citing the lack of an “up-to-date” valuation.
The same month’s annual meeting of shareholders also saw a majority of investors vote against a resolution “to continue running the fund in its current form” — a so-called “continuation vote” — commencing a six-month countdown for the board to come up with a plan “for the reconstruction, reorganisation, or winding-up of the company.”
That led to the installation of a new executive board with Naylor replacing Andrew Sutch as chairman, while last month shareholders passed a special resolution that authorizes the payment of up to 20 million pounds ($25 million) to prospective bidders seeking to acquire the fund’s assets. The fund hopes that the enticement of a large fee will help draw potential bidders to acquire some of the company’s catalogs.
February also saw Mercuriadis step down as chief executive officer of Hipgnosis Song Management to take up a newly created chairman role with Ben Katovsky replacing him as CEO.
Shot Tower is due to present its final due diligence findings to the firm’s board later this month.
The European Union leveled its first antitrust penalty against Apple on Tuesday, fining the U.S. tech giant nearly $2 billion for breaking the bloc’s competition laws by unfairly favoring its own music streaming service over rivals.
Apple banned app developers from “fully informing iOS users about alternative and cheaper music subscription services outside of the app,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust enforcer.
That is illegal under EU antitrust rules. Apple behaved this way for almost a decade, which meant many users paid “significantly higher prices for music streaming subscriptions,” the commission said.
The 1.8 billion-euro fine follows a long-running investigation triggered by a complaint from Swedish streaming service Spotify five years ago.
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The EU has led global efforts to crack down on Big Tech companies, including a series of multbillion-dollar fines for Google and charging Meta with distorting the online classified ad market. The commission also has opened a separate antitrust investigation into Apple’s mobile payments service.
The commission’s investigation initially centered on two concerns. One was the iPhone maker’s practice of forcing app developers that are selling digital content to use its in-house payment system, which charges a 30% commission on all subscriptions.
But the EU later dropped that to focus on how Apple prevents app makers from telling their users about cheaper ways to pay for subscriptions that don’t involve going through an app.
The investigation found that Apple banned streaming services from telling users about how much subscription offers cost outside of their apps, including links in their apps to pay for alternative subscriptions or even emailing users to tell them about different pricing options.
The fine comes the same week that new EU rules are set to kick in that are aimed at preventing tech companies from dominating digital markets.
The Digital Markets Act, due to take effect Thursday, imposes a set of do’s and don’ts on “gatekeeper” companies including Apple, Meta, Google parent Alphabet, and TikTok parent ByteDance — under threat of hefty fines.
The DMA’s provisions are designed to prevent tech giants from the sort of behavior that’s at the heart of the Apple investigation. Apple has already revealed how it will comply, including allowing iPhone users in Europe to use app stores other than its own and enabling developers to offer alternative payment systems.
The commission also has opened a separate antitrust investigation into Apple’s mobile payments service, and the company has promised to open up its tap-and-go mobile payment system to rivals in order to resolve it.
It’s been a nerve-wracking week for Universal Music Group employees — many did not know when they went to the office on Wednesday morning if they’d have a job on Friday. Layoffs hit department heads first and then started to impact the rank and file.
Over the past year, more than a dozen companies across the music business have undergone layoffs, eliminating thousands of jobs and leaving those who remain in a state of uncertainty. In the past twelve months alone, Warner Music Group, Atlantic Music Group, SiriusXM, Amazon Music, TikTok Music, CAA, Discord, BMG, TIDAL and Spotify have all cut staff.
This week, Universal Music Group followed suit, instituting layoffs in search of around $270 million in annual savings. The process started Wednesday and continued through Friday (March 1), impacting publicity departments, radio teams, A&R, marketing and more.
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The cuts are part of a restructure of UMG’s label operations that chairman/CEO Lucian Grainge announced in an internal memo on Feb. 1. The shift reorganized the company loosely into an East Coast-West Coast orientation, with Republic Records CEO Monte Lipman overseeing Republic, Def Jam, Island and Mercury, and Interscope Geffen A&M chairman/CEO John Janick responsible for Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note.
For UMG employees, the long runway leading into the layoffs — which were first hinted at back in October — combined with the fact that the company announced on Wednesday morning that it had earned more than $12 billion in revenue and $1.3 billion in net profit in 2023, has caused frustration, anger and anxiety, even for those who kept their jobs. That the layoffs came immediately following the annual earnings report, sources say, has led to greater frustration.
Though the scenes employees describe are typical for any company undergoing large-scale layoffs — the slow drip of news about who’s been let go, and colleagues crying as they pack up their desks, for example — UMG’s layoffs have had an outsized impact on industry morale because of the label’s position as the dominant market leader, its strong financial results and the extended period for which employees have known the cuts were coming.
In an email to staff, Grange said that “by reimagining our global structure, we are creating a blueprint for a future where our labels are empowered with new capabilities and additional agility, ensuring they can sign and support artists with enhanced access to UMG’s highest-performing internal teams and resources.” He added, “This organizational redesign represents a new paradigm for artist support and fan engagement.”
UMG first signaled its cuts during an earnings call with financial analysts at the end of October. “[We] are currently conducting a careful review of our cost base, which we will complete over the coming months, and we will update you when appropriate about an anticipated cost savings program to commence in 2024,” said Boyd Muir, the company’s executive vp and CFO. Grainge added that the company planned to “cut overheads in order to grow elsewhere.”
Earnings calls are, by nature, full of statistics and jargon like “adjusted EBITDA.” In January, the human cost of “cutting overhead” started to become clear: That would mean laying off hundreds of employees. In a statement at the time, UMG said “we are creating efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market, while realizing the benefits of our scale.”
The October earnings call did not make big headlines at the time. But many employees saw the January reports that layoffs were looming. “Every day I wake up thinking, is this the day I lose my job?” a UMG employee said in February.
“It is a particular kind of torture to leave people guessing for an extended period of time,” adds a music lawyer who has artist clients signed to UMG labels. “Your job is your No. 1 source of security. You add on top of already stressed individuals’ psyche the uncertainty of whether or not they’re gonna have a job tomorrow and draw that out for months.”
A UMG spokesperson declined to disclose any headcount for the cuts. In the meantime, sources say executives and department heads have received some generous exit packages on their way out the door.
For others outside the labels who work with them on behalf of clients, the layoffs — at UMG, at Warner, where dozens were recently let go at Atlantic Records, and amid rumors that other labels will be following suit — have also made life difficult. With UMG specifically, one manager with an artist signed to a UMG label says that the stress permeating the labels has made it hard to plan a rollout for his act. And a second music attorney notes that it’s been hard to do record deals within the UMG system knowing that the teams his artist speaks with may not be around by the time the deal is done.
Artist teams are also trying to understand how the cuts impact them. “The more I hear, the more stressed I am,” says another manager. There are “lots of firings across different positions. Some people are getting moved into jobs they aren’t in any way prepared for. And some people are now being asked to do what was previously three different jobs at once.”
There are more cuts to come in a “phase two” of the “strategic organizational redesign” next year, according to UMG’s investor presentation this week, which stated that “a combination of further ex-U.S. headcount reduction and other operational efficiencies” was set to begin in 2025. But not a single financial analyst asked questions about the extent of the layoffs on Wednesday. Instead, they asked about UMG’s battle with TikTok.
Nas wants to bring a state-of-the-art casino to his home borough of Queens.
On Thursday (Feb. 29), the rap legend was on hand to unveil the $5 billion vision for Resorts World‘s Aqueduct Park in Southeast Queens as the company hopes to win a license from New York State to break ground on the project. If granted, the casino is expected to be one of the largest in the world at 350,000 square feet.
“This is an ambitious project that will give new opportunities to the hard-working families who call Queens home, attract top-tier talent, and build up the next generation of leaders,” said Nas, who has partnered with Resorts World to help promote the project, in a statement. “Clearly, with this project, the world is ours.”
The “Queens Get the Money” rapper reportedly added at the unveiling: “It’s an honor to be here, to be a part of this with Resorts World, realizing the future, seeing what this can be and what it will be.”
Since Resorts World gained access to the land and infrastructure in 2010, it has been preparing to one day build a multi-functional casino. There are plans for a 7,000-seat capacity entertainment venue to host events and concerts as well.
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Park space, housing, hotels, restaurants and renovated transit options to JFK Airport and Manhattan are also part of the grand vision, which could create 5,000 union jobs.
Two-time NBA champion and current TNT basketball analyst Kenny “The Jet” Smith also endorsed the project; the plan includes building a sports academy with facilities named after the former Houston Rocket player.
“Resorts World came to me with a clear goal of fostering tomorrow’s athletes, student athletes and leaders both on and off the court,” said Smith in a statement. “Their investment in this Academy will help us teach the next generation the nuances of the game on and off the court, as well as the social, economic, and cultural impact of sports. I’m thrilled to partner with them to improve the borough that raised me and take it to the next level.”
Per The New York Times, Resorts World as well as Yonkers’ Empire City are expected to receive two out of the three licenses granted by New York State. That would not bode well for JAY-Z’s Times Square casino bid in Manhattan.
Watch an ad starring Nas for the Queens Resorts World Casino proposal below.
Universal Music Group (UMG) shares rose 4.9% on Thursday (Feb. 29), the day after its fourth-quarter earnings revealed record revenue of 11.1 billion euros ($12 billion) in 2023 and strong subscription-related growth in the fourth quarter. The music giant’s stock finished the week up 2.3% to 27.87 euros ($30.25), bringing its year-to-date gain to 6.8%.
Investors also received details about the financial impacts of UMG’s company-wide layoffs. A reduction in global headcount is expected to save 75 million euros ($81.3 million) in 2024, 125 million euros ($135.5 million) in 2025 and 250 million euros ($271 million) annually by 2026. UMG has not specified the number of employees being laid off, but Billboard had identified nearly 50 across the company by Friday afternoon (Mar. 1). A second phase of layoffs and “other operational efficiencies” is scheduled to begin in 2025 and run through 2026, according to UMG’s latest investor presentation.
In reducing its headcount and eliminating some positions, UMG is “redesigning our organization to enhance our capabilities in the areas most critical to our future growth and success,” CFO Boyd Muir said during the earnings call Wednesday (Feb. 28). “These changes will strengthen our leadership team, foster innovation and create significant efficiencies across our business.”
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Also enjoying gains this week were some of the other largest companies in the 20-member Billboard Global Music Index. Spotify rose 3.0% to $263.75, Warner Music Group improved 3.2% to $35.48 and Live Nation increased 1.9% to $97.15. The index itself rose 1.9% to a record 1,715.81, with 11 stocks in positive territory.
Stocks had another strong week in the United States overall. On Friday, the Nasdaq composite surpassed its previous high from 2021 and finished the week up 1.7% to 16,274.94. Chipmaker Nvidia rose another 4.4% to $822.79 this week after gaining 8.5% the previous week. Meta shares were up 3.8% to $502.30 following its announcement on Thursday that it will “deprecate” (i.e. remove) its Facebook News tab in the United States and Australia. The S&P 500 gained 0.9% to 5,137.08 — its first close over 5,100.
In the United Kingdom, the FTSE 100 fell 0.3% to 7,682.50. South Korea’s KOSPI Composite index fell 0.9% to 2,642.36, mirroring the declines of K-pop companies HYBE (down 7.6%), SM Entertainment (down 2.5%), JYP Entertainment (down 3.4%) and YG Entertainment (down 3.9%). China’s Shangai Composite Index gained 0.7% to 3,027.02.
Sphere Entertainment Co. was music’s greatest gainer of the week after its share price rose 8.4% to $44.29. The price jumped 6.2% on Thursday after an SEC filing revealed chairman/CEO James Dolan acquired an additional 59,000 shares, ranging from $40.48 to $41.46 per share. Less impactful to the share price was TMZ‘s news that the Eagles are in talks for a fall residency at the $2.3 billion Sphere in Las Vegas. After U2’s residency ends this weekend, Sphere will host Phish for four dates in April and Dead & Company for 24 dates spanning from May 16 to July 13. Sphere shares have gained 30.3% year to date.
French music streamer Deezer was the next-best performer of the week after gaining 5.1% to 2.25 euros ($2.44). The company reported fourth-quarter earnings on Thursday that showed improvements in subscriber court and average revenue per user. Revenue of 130.7 million euros ($141 million) was up 12.1% from the prior-year period. The same day, Deezer also announced the departure of CEO Jeronimo Folgueira. “Deezer is back on a growth trajectory and can now build from a solid foundation,” said chairwoman Iris Knobloch.
Believe shares rose 4.2% to 15.50 euros ($16.82) after the French music company announced that it received interest from a third party; a consortium consisting of founder Denis Ladegaillerie and two major shareholders launched a bid in February to take the company private at 15.00 euros per share. On Friday, Believe revealed it received “a confidential exploratory non-binding approach” from another party that valued the company at “at least” 17.00 euros ($18.45) per share. Believe was careful to note the third party’s approach did not constitute an obligation to make an offer. Still, the appearance of another possible bidder was enough to push Believe’s share price above the consortium’s earlier 15.00 euros-per-share bid.
Shares of Chinese music streamer Cloud Music dropped 0.5% to 90.45 HKD ($11.55). The company announced Thursday that music subscribers grew 8.7% to 205.9 million in the fourth quarter, with subscription growth helping revenue from online music services increase 17.6% to 4.4 billion RMB ($611 million) — although total revenue fell 12.5% to 7.78 billion RMB ($1.09 billion). Gross profit improved 63% to 2.1 billion RMB ($292 million) and net profit improved to 818.5 million RMB ($114 million) from a net loss of 114.6 million RMB ($16 million) in 2022.
iHeartMedia shares fell 2.6% to $2.26 after a seesaw week for the country’s leading radio broadcaster. The stock rose 22.0% to $2.77 on Thursday after the company’s fourth-quarter earnings report suggested the fog might be lifting from an advertising slowdown that has hurt broadcast radio revenues. After fourth-quarter revenue fell about 5%, iHeartMedia’s first-quarter revenue is expected to be down 2% to flat. Podcasts were a bright spot, growing 16.6% in the fourth quarter and 13.8% for the full year. Nearly all of Thursday’s gain was erased on Friday, however, when iHeartMedia shares fell 18.4%.
Cumulus Media suffered the largest loss amongst music stocks after falling 20.4% to $3.74. On Tuesday (Feb. 27), the radio broadcaster said its 2023 revenues fell 11.4% to $844.5 million and announced a debt exchange offer that would allow lenders to swap 6.750% notes due 2026 for 8.750% notes due 2029. The company is also offering to exchange term loans under a 2019 credit facility for new term loans.