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Believe founder and CEO Denis Ladegaillerie has formed a consortium with investment funds EQT and TCV as part of a wider effort to acquire full ownership of the French music company and take it private. The triad announced their intentions on Monday (Feb. 12), and the Believe board of directors unanimously voted to welcome the proposal to review.
All told, the bid values Believe’s entire share capital at 1.523 billion euros (USD $1.64 billion) based on 101,547 million shares outstanding.
Before they can take Believe private, Ladegaillerie, EQT and TCV first must acquire shares owned by historical shareholders TCV Luxco BD S.à r.l., XAnge and Ventech, which combined amount to 59.46% of the share capital. After this already agreed-upon transaction, Ladegaillerie would then contribute a portion of his company shares, representing an additional 11.7%, to the bidding conglomerate, as well as sell his remaining portion of 1.29%. An additional 3% has been obtained from other shareholders, bringing this group’s share of the company to roughly 75%.
Once these acquisitions are approved by regulators, the conglomerate would then make a tender offer for all Believe outstanding shares at an offer price of 15 euros per share, representing a 21% premium over the last closing price before the proposed buyout was announced (12.4 euros on Feb. 9). If legal conditions are met at the end of the offer, the company will then request the implementation of a squeeze-out procedure.
Completion of the acquisitions of the blocks of shares is expected to take place during the second quarter of 2024, and the filing of the subsequent tender offer would be sent to the Autorité des marchés financiers (AMF), which regulates the stock market in France, soon after.
The French digital music company, which owns TuneCore, began trading on the Paris Euronext exchange in June 2021.
Believe’s board has appointed an independent expert, Ledouble, to draw up an opinion on the offer, and assigned three board members to assist with that effort and work up their own recommendations for shareholders and employees.
In prepared comments, Ladegaillerie said Believe has “systematically outperformed its objectives, delivering its IPO plan two years ahead of schedule” but “the strength of its operational performance has not been reflected in the share price evolution.”
He added, “Believe has a significant opportunity ahead to consolidate the independent music market and create the first global major independent, at the service of artists at all stages of their career. In achieving this ambition, I am glad to continue benefiting from the active support of TCV who has accompanied Believe since 2014 and to be partnering with Europe-based EQT who has a great track record in supporting high growth companies.”
Believe has appointed Citigroup Global Markets Europe AG and Gide Loyrette Nouel as financial and legal advisers to assist the company and the three-member committee in their evaluation of the offer.
At the end of BMW’s new Super Bowl ad, actor Christopher Walken sits down to dine at a restaurant and finds Usher at the next table. They (and a waiter) wind up saying “yeah!” to each other a few times, and for this, publishers for each of the six songwriters on Usher’s 2004 smash “Yeah!” get to split a huge sync payment — even though not another word or any melody from the song is performed during the one-minute spot.
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“We, of course, smiled, and said, ‘You bet, we’ll license this to you guys,’” says Brian Monaco, president/global chief marketing officer for Sony Music Publishing (SMP), which represents James Phillips, one of six writers on “Yeah!” “It was a full fee, like they were using the entire song.” Pamela Lillig, vp of sync licensing for BMG, which represents co-writers J. Que, LaMarquis Jefferson and Sean Garrett, adds that BMW wouldn’t have had to pay the fee if random actors were saying “yeah” in an ad, but “because Usher’s in it, they felt they probably should.”
“Yeah!” — as well as Charles Wright & the Watts 103rd Street Rhythm Band’s 1970 soul classic “Express Yourself,” which plays throughout the BMW spot — is one of many big, easily recognizable tracks used in Super Bowl advertisements this year. Dove soap licensed “It’s the Hard-Knock Life” (from the Annie soundtrack); Budweiser brought back its Clydesdales for a spot containing The Band‘s “The Weight”; Volkswagen celebrated its 75-year history in the United States set to Neil Diamond‘s “I Am . . . I Said”; and a Popeyes ad includes “Also Sprach Zarathustra” and DJ Snake and Lil Jon‘s “Turn Down for What.”
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“The majority of songs used for us this year are catalog songs,” says Tom Eaton, senior vp of music for advertising for Universal Music Publishing Group (UMPG), which represents the Band and Diamond catalogs. “They create an immediate impact.” Adds Patrick Joest, head of sync for Hipgnosis, which owns stakes in Heart‘s “Barracuda,” used in a Hyundai commercial, and “Turn Down for What”: “What you’re seeing this year is people are going for the sure shots.”
Super Bowl ads are one of the most lucrative showcases for publishers’ nearly $1.5 billion-per-year synch business each year. According to synch sources, 2024 fees have ranged anywhere from $150,000 to more than $1 million. Last fall, when Hollywood writers and actors were still striking and placing songs for TV and film was paused for the foreseeable future, the beginning of the Super Bowl song-licensing season came as a welcome relief. “It was looking a little shaky,” says Scott Cresto, executive vp of synchronization and marketing for publisher Reservoir, which has a stake in Coi Leray and David Guetta‘s “Make My Day,” used in an E-Trade spot for this year’s game. “In the last quarter, all of our top 20 synchs were ads. It definitely helped our numbers.”
UMPG (whose catalog includes The O’Jays‘ “Love Train,” used in a Coors Light spot, and Perry Como‘s “Round and Round,” for Lindt Chocolate) has 18 synchs during this year’s Super Bowl. Sony landed 14 and Warner Chappell Music had 12 (including “Express Yourself”), while BMG had five, Kobalt four, Reservoir three and Hipgnosis two. (Billboard tallies in-game, national ads that appear during the CBS broadcast.)
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For recent Super Bowls, according to Rich Robinson, Warner Chappell’s executive vp of global synchronization and media, multiple ads used original “sound-design” instrumentals, as opposed to traditional song synchs that generate robust licensing fees for publishers. This year, the pendulum has swung back to the familiar. “It feels like a return,” Robinson says. “Almost every one we’ve licensed is a version of a really well-known hit.”
Still, a minority of Super Bowl LVIII ads showcase newer songs and stars: Ice Spice‘s “Deli” (UMPG) soundtracks an ad for Starry soda and Maizie’s 2021 track “Dumb Dumb” (BMG and SMP) is in an Uber Eats spot. And prolific songwriter Ryan Tedder of OneRepublic received a request this past Monday (Feb. 5) from a T-Mobile contact and wrote a new song, “Try,” in an hour, then submitted it as a voice memo. The ad will broadcast during the Super Bowl. “He works fast,” says Sony’s Monaco.
“There’s a mad rush sometimes. It’s super last-minute,” adds Lisa Bergami, vp of creative sync for Kobalt, whose Super Bowl placements include Flo Rida‘s “Good Feeling,” used in a Veozah menopause medication spot. “Some [advertisers] have gone a million rounds and ended up going with the song they wanted at the beginning. There isn’t much of a rhyme or reason.”
The Sphere venue in Las Vegas isn’t turning a profit, but it’s doing enough to encourage investors to buy into its owner, Sphere Entertainment Co.
Shares of Sphere Entertainment gained 13.8% to $40.29 this week after the company’s quarterly earnings report released Monday (Feb. 5) showed that the state-of-the-art venue — currently capturing eyeballs ahead of the Super Bowl in Las Vegas on Sunday — took in revenue of $167.8 million and had an adjusted gain of $14 million (adjusted to certain items including $117 million of non-cash impairment related to the company’s failed bid to open a Sphere in London).
Sphere Entertainment was the top-performing music stock in a week when music stocks soared to new heights, with the 20-company Billboard Global Music Index gaining 3% to land at a record 1,636.43. While the numbers of winners and losers were even at 10 stocks apiece, most of the index’s most valuable companies posted gains this week. Tencent Music Entertainment rose 6.7% to $9.67, Live Nation improved 1.5% to $89.53 and Universal Music Group gained 1.2% to 27.41 euros ($29.55).
Spotify, another of the index’s largest companies, gained 8.2% to $240.77 after its earnings results on Tuesday (Feb. 6) showed its subscriber number grew to 236 million, up 10 million in the quarter, and that revenue grew 16% to 3.67 billion euros ($4.05 billion). The share price reached its highest mark since December 2021 as investors discovered a renewed faith in Spotify following its decision to cut 17% of its workforce in December. Spotify has always had a good product. Now, there is a growing feeling it can be a good business, too.
“The market is now seeing the potential of this business,” Morgan Stanley analysts wrote in a Wednesday (Feb. 7) note to investors, “as record [monthly active user] net adds and subscribers come alongside price increases and an aggressive turn towards cost efficiency.” Stronger revenue growth and the potential for better margins led Morgan Stanley to raise its Spotify price target from $250 to $270.
Major indexes gained this week, too, and one reached a major threshold: The S&P 500 closed above 5,000 for the first time on Friday as it rose 1.4% to 5,026.61, while the Nasdaq composite improved 2.3% to 15,990.66, its highest level since 2021, thanks to big gains from chip maker Nvidia and e-commerce giant Amazon. In the United Kingdom, the FTSE 100 declined 0.6% to 7,572.58. South Korea’s KOSPI composite index rose 0.2% to 2,620.32. China’s Shangai Composite Index jumped 5% to 2,865.90.
It was a busy week for corporate earnings reports. CTS Eventim shares rose 5.5% to 66.90 euros ($72.12) following the company’s fourth-quarter results Wednesday. The German concert promoter’s 2023 revenue reached 2.4 billion euros, up 22.5%, and earnings before interest, taxes, depreciation and amortization improved 31.9% to 501.4 million euros.
Warner Music Group (WMG) shares briefly rallied following its earnings results on Thursday — with the stock up 5.1% to $38.05 — but it finished the day down 2.5% and the week down 2.6% to $35.71. Morgan Stanley analysts remained “overweight” on WMG and kept the price target at $42. Guggenheim analysts reiterated their “buy” rating and maintained their $46 price target.
MSG Entertainment shares rose 9% to $36.81 after the company’s fiscal second-quarter earnings results were released Wednesday. The New York-based live entertainment company raised revenue guidance for its full fiscal year by 10% to a range of $930 million to $950 million. Executive chairman/CEO James Dolan attributed the strong quarter to “record results” from the Christmas Spectacular production, the long-running show featuring the Radio City Rockettes.
LiveOne shares fell 2.1% after PodcastOne reported a 22% increase in revenue in the first nine months of its fiscal year on Thursday (Feb. 8). (LiveOne spun off PodcastOne in 2023 and retained a 73% stake.) PodcastOne ranked No. 10 in Podtrac’s top publisher’s rankings and achieved a U.S. audience of 5.3 million, but its net loss increased from $3 million to $13.7 million.
What’s the best way to become a superstar? First, become a successful mainstream artist.
That’s one of the key takeaways from the inaugural annual report from music data company Chartmetric.
Of the roughly 710,000 new artists added to Chartmetric’s platform in 2023 that placed into one of six career stages — ranging from “undiscovered” to “legendary,” only a small fraction of a percent finished the year amongst the top 35,000 artists. Instead, most new artists — 87.6% of them — fell into the “undiscovered” category, while 12.3% of them reached “developing,” one category above.
The upper echelons were incredibly difficult for new artists to reach. Just 0.05% of new artists — about 355 — finished in the mid-level category or higher — meaning they ranked in the top 35,000 on the platform. Chartmetric created its proprietary Career Stages categories by taking into account artists’ performance across streaming services, social media platforms and radio airplay.
But wait, the numbers are even more imposing! There were actually 1.3 million new artists added to Chartmetric in 2023, but only 710,000 of them were actually assigned a career stage. Chartmetric told Billboard it does not assign every artist a career stage to limit duplicates, remove non-artist profiles and filter out artists with limited data.
Chartmetric’s statistics throw cold water on the notion that social media and do-it-yourself distribution can help any artist reach the levels of success previously attainable only to artists on record labels. Those rare instances grab headlines and feed the narrative that technology has eroded traditional gatekeepers’ powers and democratized access to audiences. And while it’s true that artists such as Armani White and Jxdn rode TikTok fame to major-label record deals, those success stories are outliers. Anonymity, or something close to it, is the norm.
Economic mobility is far from impossible, though. Because Chartmetric tracks so many artists, even incredibly low odds of success can result in a meaningful number of artists moving up the ranks. The 355 new artists that broke into or surpassed the mid-tier level is a big enough number of breakthrough new artists to feed a system of record labels and artist-services companies that must constantly seek out young candidates to become future stars.
Still, the challenging math underpinning success in music makes sense. Getting heard is difficult when audiences live under a constant deluge of listening options. A massive amount of music is released every day — more than 110,000 on average every day in 2023, according to Luminate. Chartmetric added 17.2 million new tracks to its database in 2023 — 7.7 million were released last year — and has 103.9 million tracks in its system.
To evaluate career stage development, Chartmetric took a sample of artists who had reached a career stage on June 11. The vast majority of artists fell into the undiscovered category. In fact, undiscovered artists made up all but 150,000 of the roughly 1.5 million artists who had been given any career stage category on June 11.
Rather than take huge jumps in career stages, most artists who break out to superstar status come from the mainstream, not from the mid-level or developing categories. More than half — 54.2% — of mid-level artists (No. 12,000 to No. 35,000) rose to the mainstream category (No. 1,500 to No. 12,000), the strongest relationship between any two career stages, says Chartmetric.
Put another way, getting to the upper echelon usually means you’ve already had considerable success. This is likely to result of “a steady, consistent rise to the top,” Chartmetric opines, rather than overnight fame.
This path to success makes sense given the advantageous starting point of most major label artists. Rare is the artist plucked from obscurity and developed into a chart-topping success from scratch. In most cases, artists build a career independently and prove themselves — whether through a TikTok hit or ticket sales — before signing with a record label. The bidding war comes after, not before, an artist finds an audience. Undiscovered artists are far riskier propositions for record labels than mid-tier artists.
There is some economic mobility for less successful careers — but not much. About 12% of developing artists were able to rise to mid-level status (No. 12,000 to No. 35,000). Far fewer jumped all the way to the upper echelons: Just 0.25% of developing artists jumped mid-level status and reached mainstream (No. 1,500 to No. 12,000) or superstar (top 1,500).
Just as economic mobility characterizes the “American dream,” the idea that a person can strive to achieve a better life, the great hope of the modern music business is that artists can make a living on streaming royalties. Whether the system is fair is under debate. Spotify, Deezer and SoundCloud have changed their royalty calculations to favor professional and developing artists over undeveloped artists and non-music content. In the European Union, lawmakers are pressing music streaming services to improve payouts to artists.
Chartmetric’s report doesn’t dispel any notions that the odds are stacked against new artists hoping to break into the mainstream. Success is possible, but it’s rare.
This past Monday (Feb. 5), roughly 300 people across music industry sectors gathered at The Novo theater in downtown Los Angeles for the first -ever North American music industry climate summit. Outside, sheets of rain came down during unusually heavy storms in Southern California, adding a sense of urgency – and purpose – to an event meant to catalyze the music industry into taking meaningful action on the issue.
Organized by the Music Sustainability Alliance (MSA) – a neutral body that functions as a sustainability convener and resource for the entire industry – the Music Sustainability Summit featured eight hours of panels on climate-related topics, from carbon emissions related to fan travel to environmentally responsible food sourcing at events. Attendees were encouraged to (and did) bring their own water bottles and lanyards, with reusable cups on hand and a plant-based lunch served with bamboo plates and cutlery.
The event was a watershed moment for the music industry’s relationship with climate change, marking the first-time leaders of all sectors of the industry came together to discuss the issue and commit to creating systemic change. Enthusiasm around the event – which had to move to a larger venue to accommodate interest and drew a big crowd even in inclement weather – demonstrated that the industry is eager, even desperate, to become more sustainable and use the platform of music to inspire and catalyze a cultural movement for climate action.
Beyond knowledge sharing, the summit succeeded in bringing together stakeholders in the music industry’s fight against climate change, solidifying and expanding this community and shoring up the collective knowledge base. The summit was hosted by Joel Makower, a business sustainability expert and journalist whose depth of knowledge on the subject was matched by a thoughtful, often funny demeanor that brought levity to an often very existential seeming problem.
“The good news we don’t hear enough about is that we already have the solutions to climate change that work and are affordable,” noted one panelist. “How do I know this? Because we’ve scienced the s— out of it.”
(The summit was held under the Chatham House Rule, which advises that anyone who comes to a meeting is free to use information from that meeting, but is not allowed to reveal who made any particular comment. This rule was enacted so that summit attendees could speak freely in order to allow the event to have the highest impact. Billboard was the media sponsor of the Summit and agreed to abide by this Rule.)
Representatives for the MSA tell Billboard that following the summit, the plan is to keep momentum going through the formation of working groups. The MSA — lead by president and co-founder Amy Morrison, director Eleanor Anderson, co-founder and board member Michael Martin and board member Kurt Langer — will function as admin for these groups, helping bring people together, organize meetings and take notes to ensure conversations turn into action.
The MSA will also host monthly webinars to focus on specific issues. The first one next month will include a vote on how the industry can use its platforms to encourage audiences to be climate-minded voters. The summit will become an annual event, scheduled to happen annually on the day after the Grammys. Additionally, the MSA is working on accessible online content including an updated resource guide and other educational materials.
Music Sustainability Alliance staff Kurt Langer, Amy Morrison, Eleanor Anderson, and Michael Martin
Gilbert Flores
A crucial part of the plan is to have employees from competing companies engage with each other in a pre-competitive environment to share information and take steps that will be necessary for all companies to enact to meaningfully address climate change. The summit demonstrated that these precompetitive conversations are possible, with one panel featuring chief sustainability officers from Live Nation, AEG, ASM Global and Oak View Group, who told the audience they were all friendly with each other anyway.
Here are a few of the many things learned at the inaugural event.
The Music Industry Has Oversized Influence On The Issue
While it’s not yet clear just how much carbon emissions the music industry is responsible for, it’s likely that this number is relatively small in comparison to other industries. But the influence the industry has on climate change is massive, with many speakers emphasizing that because music affects culture — and the hearts, minds and motivations of listeners — the effect the industry can have on the issue is tremendous.
“Music makes culture,” one speaker observed, and thus determines “what things in culture become normalized.”
Artists Can Do a Lot, But They Can’t Do It All
There were many conversations about the effect artists can have in terms of educating their audiences on climate change and motivating fans to take action. These conversations observed that authenticity is the key to successful initiatives and that fans find it most inspiring when artists take action with them. Billie Eilish’s sustainability efforts were cited many times throughout the day, including a statistic that 130,000 fan actions resulted from Eilish’s climate change initiatives during her last tour.
These discussions advised, however, that artists cannot take on the burden of responsibility alone, with everyone in the industry responsible for initiating action, while also working with legislators.
Practical Solutions Are Available Now
A presentation on waste management noted that four billion single use cups are thrown away at live events every year. But the music industry is leading the re-use movement in the United States through a company called r.Cup — which provides reusable cups in venues and at festivals and which has eliminated 43 tons of plastic so far. Both AEG and Live Nation have employed successful reusable cup programs at various events.
Emissions: Fan Travel Is The Leading Issue
In terms of energy use, a panel on diesel fuel noted that the quickest way to decarbonize the music industry would be to remove diesel generators from event sites. While this measure is currently cost prohibitive and not yet possible, as most legacy rental companies would need a massive infrastructure upgrade to make it happen, the panel emphasized that it’s likely the technology to make this happen is forthcoming.
This conversation also included the use of HVOs (renewable diesel) that reduces CO2 emissions by 90%, along with talk about the option for currently available batteries to replace diesel generators in ancillary uses like parking lots and site lighting, etc. The hybrid use of batteries and generators was also discussed.
During the panel, it was noted that fan travel contributes to 50-80% of music industry carbon emissions, an acute issue given that many festivals happen in far-flung locations and that even many cities connected to the grid don’t offer public transportation. This conversation illustrated the need for promoters, venues, festival producers, fans, artists and municipalities to work together.
Food Is a Crucial Piece of Puzzle — And Action On It Can Happen Now
With animal agriculture being a major contributor to climate change, deforestation and air and water pollution, a food-focused panel demonstrated that the industry – from massive arena concerts to video shoots to award shows and meetings – can impact this in a positive way through plant-based catering and concessions.
It was suggested that even large venues that get food from large, national distributors could open up one plant-based concession stand to a local business or allow this business to park a food truck outside. Changing menus to include plant-based options is doable now, and a good place to start in terms of action that has the potential to change people’s everyday food choices.
Support And Feed, an organization founded by Eilish and Finneas’ mother Maggie Baird that works to mitigate climate change and increase food security by driving global demand, acceptance, and accessibility of plant-based food, is considered a leader in this space. The food panel also cited that roughly 8.8 million gallons of water were saved thanks to Eilish’s last tour switching to plant-based catering.
In what could be the largest valuation ever of a musician’s music assets, Sony Music Group has closed an agreement to buy half of Michael Jackson‘s publishing and recorded masters catalog in a deal that sources say valued those music assets somewhere above $1.2 billion. Other sources have suggested it might be as much as $1.5 billion. At those valuations, Sony will pay at least $600 million for its stake of the legendary rights.
That means that the Jackson deal, which closed late last year, is at a bigger valuation than the $1.2 billion that Queen is currently seeking. And whereas the Queen valuation includes, sources say, royalties from income streams beyond the masters and publishing, including from the Freddie Mercury biopic, Bohemian Rhapsody, and theatrical productions using Queen’s music, Sony’s deal with the Michael Jackson estate does not include royalties from the Broadway play and other theatrical productions featuring Jackson’s music.
It may not, however, just be Jackson’s music that’s involved in the deal. Sources say the current deal includes non-Jackson-authored songs in his Mijac publishing catalog, which also includes the approximately 250-song Sly & the Family Stone publishing catalog as well as iconic songs written and/or performed by Jerry Lee Lewis, Jackie Wilson, Curtis Mayfield, Ray Charles, Percy Sledge and Dion.
Last February, following a story first reported by Variety that the Jackson deal was being negotiated, Billboard estimated that the iconic artist’s estate earns about $75 million annually. Those assets include ownership of master recordings, publishing for Jackson’s share of his songs, his Mijac publishing catalog and revenue from merchandise and royalties from theatrical shows featuring Jackson’s music. At the time, Billboard estimated that within the $75 million estimate, Jackson’s recording and publishing assets alone brought in $47.2 million to the estate; and that Mijac might be bringing in another $5 million to $8 million annually.
The Jackson estimate, however, did not take into account that his popularity appears to be growing as the streaming marketplace expands.
Sales and streams of Jackson’s music grew steadily from 1.07 million album equivalent units in 2020 to 1.47 million in 2023 — up 37% over those three years — according to Luminate. That outpaced the overall U.S. music market for album consumption units, which grew 22.9% during that time period. Outside the United States, Jackson is arguably even more popular. In 2023, consumption of his music grew 38.3% to 6.5 billion on-demand streams, up from 4.7 billion streams in 2021.
Next year, a Jackson biopic called Michael will be released, likely fueling even more growth to his fanbase, boosting consumption and triggering more revenue to flow to his estate and any other rights holder.
With all of the economic returns the estate is delivering, the masterminds behind it — lawyer John Branca and A&R executive John McClain — are expected to continue to stay involved as co-executors.
Sources indicate that the Sony deal also leaves in place Primary Wave’s stake, which is believed to be about 10% of Jackson’s publishing assets.
Throughout the years, Sony has paid the Jackson estate more than $2 billion in some major deals that go beyond distributing royalties for his records and songs. In 1991, the company paid $100 million to buy the first half of what became Sony/ATV; ATV Music was the catalog that Jackson bought in 1985 that contained the Beatles catalog and other popular songs. That was merged into Sony’s music publishing operation to become Sony/ATV, with Sony and Jackson each owning 50% of that company. In 2016, the company paid $750 million for the remaining 50% of Sony/ATV. It also paid $287.5 million for the Jackson estate’s share of the consortium that owned EMI Music Publishing in 2018, as well as dividends during its ownership of those assets that came out to a total of about $1.6 billion. And now, the latest deal adds another $600 million or more, driving the total amount past the $2 billion mark.
Sony has been active with acquisitions over the past year. Last year, it also acquired what has been described as a significant minority stake in the Latin label and management company Rimas Entertainment, which launched Bad Bunny‘s career. While it’s unclear what percentage Sony bought, the overall deal for the label and management was expected to have about a $300 million valuation, sources said at the time.
In May 2023, Sony also acquired the RECORDS catalog from Barry Weiss, Ron Perry and Matt Pincus, buying out the latter duo in a deal that was seeking a $100 million valuation; and then did a going forward 50/50 deal with Weiss, who retained control of the label’s recent catalog.
Reps for Sony, the Jackson estate and Primary Wave declined to comment.
Since investing in the Chicago Sky in 2006, singer Michelle Williams of Destiny’s Child fame has sung the national anthem at multiple games, joined a Sky star in a photo-op with local high school players, hung out with fans at a meet-and-greet — and, of course, enjoyed the best seats in the house.
With her minority stake in the 2021 WNBA champion team, Williams belongs to an exclusive group of pop stars who own a slice of a sports team, including Usher, J. Cole, Pitbull, Fergie, Marc Anthony and Justin Timberlake. And with the Sky recently valued at $85 million, her investment is paying off in multiple ways.
“It checks a lot of the boxes — [she] is from the city, a fan of the sport, a woman, a member of an iconic group,” says Jonathan Azu, founder and CEO of Culture Collective, which manages Williams. “It has the hallmarks of why you would do something like that: ‘I’m associated with this team, so it brings a lot of value to my brand.’ ”
Michelle Williams speaks to kids at a the Dr. Martin Luther King Jr. Boys and Girls Club Monday, Feb. 27, 2006 in Chicago.
Jeff Roberson/AP Images
For an artist, that kind of value is both figurative and literal. Whether it’s Usher buying a small stake in the NBA’s Cleveland Cavaliers, Anthony and Fergie becoming minority owners of the NFL’s Miami Dolphins, Cole buying into the NBA’s Charlotte Hornets or Pitbull becoming co-owner of NASCAR’s Trackhouse Racing Team, money is a primary motivator.
“The stock market can go down, but the value of, say, the Texas Rangers is not going to go down,” says Michael Rapkoch, founder and CEO of Dallas-based Sports Value Consulting. Usher’s $9 million Cavs investment, for instance, may have more than quadrupled in value since he first made it in 2005, according to Forbes estimates. “I’m very happy to say that I don’t just have a basketball team, I have a championship team,” Usher tells Billboard, noting the Cavs won in 2016 under his watch. “That legacy is associated with something that I made an investment in.”
Perhaps the best-known artist-turned-team owner is Jay-Z, who spent $1 million on a small stake in the NBA’s Nets in 2004, helped move the franchise from New Jersey to his native Brooklyn, then divested from the team in 2013 to avoid a conflict of interest with his Roc Nation Sports agency. His windfall from that deal, according to Forbes, was an estimated $1.4 million.
Marc Anthony attends the NFL, ESPN/ESPN Deportes and the Miami Dolphins press conference at the Time Warner Center on July 21, 2009 in New York City.
Andrew H. Walker/Getty Images
Investing in a team can also mean easy self-marketing. When Timberlake, whose investing group owns a reported 2.8% of his hometown NBA team, the Memphis Grizzlies, played camera operator at home games, Sports Illustrated covered the story. “Sports is entertainment. There is crossover at every level,” Mark Cuban, who recently sold his majority stake in the NBA’s Dallas Mavericks for a reported $3.5 billion, tells Billboard.
That said, even a minority stake can be risky — “no different than any business,” as Cuban says. “If it’s not well run [and] customers aren’t happy, you can lose a lot of money.” That’s why none of longtime Bay Area music business manager Tim Jorstad’s clients have ever bought stakes in teams, even though many of his clients, which include the Doobie Brothers, Jefferson Airplane and members of Journey and the Grateful Dead, are regional sports fans.
Nonetheless, the perks tend to outweigh the potential downside for artists craving a piece of the sports pie. “It’s a fun investment. [Artist-owners] go to a lot of games and get to sit in the owners’ box and go onto the field and schmooze,” Jorstad says. “There are very few other normal investments where you get that kind of public exposure.”
J. Cole during the Miami Heat vs Charlotte Hornets game at FTX Arena on November 10, 2022 in Miami, Florida.
Lauren Sopourn/Getty Images
Additional reporting by Gail Mitchell.
This story will appear in the Feb. 10, 2024, issue of Billboard.
The $10 billion-a-year sports agency business is almost as hard to break into as the big leagues themselves — the gatekeepers are entrenched and powerful, and the cost of competing with them can be prohibitive. Right now, though, a growing disconnect between athletes and agents — players want their agents to find them lucrative ways to leverage their fame, while agents want to focus on the high-dollar contracts — is creating opportunities for entrepreneurs to disrupt the business. Some of them are coming from the music industry, leveraging their own cultural cachet to find clients and opportunities, including Jay-Z, whose Roc Nation includes a sports agency business; Young Money APAA Sports; and Quality Control Sports. More music stars are on their way this year too.
The business is now dominated by five firms — CAA Sports, Wasserman Sports, WME Sports, Excel Sports and Octagon — which together generate half of the $6 billion in commissions that the top 20 firms collected, according to Forbes. On the surface, these companies operate a bit like music and film/TV agencies, where executives identify opportunities for their clients and negotiate on their behalf. But the vast majority of the money comes from long-term player contracts that deliver giant commissions, and many athletes think this leads agents to ignore sports-adjacent opportunities and investments. Roc Nation and Rich Paul’s Klutch Sports, built on their reputation for combining sports and entertainment, used this to challenge the entrenched players, successfully enough that they are now ranked No. 7 and No. 9 by revenue, respectively, according to Forbes.
Does that mean other musicians and music executives will follow their lead — or even that they should? Launching a sports agency is expensive — it can take between $40 million and $50 million, according to Forbes, which is a big bet even for most stars. So that usually means finding additional investors, in the form of financial backers or other entrepreneurs, plus athletes who are either looking for an agent or a new one.
Roc Nation, which had a rock-solid source of both cash and credibility in Jay-Z, entered the sports business in 2013, five years after the company’s launch, with four-time All-Star Yankees second baseman Robinson Canó. Its sports division now has 190 clients, including Charlotte Hornets point guard LaMelo Ball and New York Giants running back Saquon Barkley, and about $2 billion in player salaries and another $500 million in sponsorships and nonsalary deals, according to Forbes, which estimates that the company’s sports operations generate $203 million a year. (Roc Nation declined to comment on its finances.) Klutch Sports, where Paul is agent and manager for LeBron James, as well as a board member for Live Nation Entertainment, generates about half that.
That kind of success brings competition, including from music executives Kevin “Coach K” Lee and Pierre “P” Thomas, who launched Quality Control Sports in 2019, four years before HYBE purchased their company. Their agency’s clients include New Orleans Saints running back Alvin Kamara and Kansas City Chiefs wide receiver Richie James. The Lil Wayne-owned Young Money APAA Sports has also put points on the board by signing University of Miami’s Leonard Taylor III ahead of the 2024 NFL draft.
That doesn’t mean every venture succeeds, though. Jeezy started his Sports 99 agency in 2019, but it closed during the pandemic, and Kanye West’s Donda Sports, launched in 2022 with basketball players Aaron Donald and Jaylen Brown, imploded within months after West made a series of antisemitic comments.
The fast-paced evolution of both the sports and music businesses may continue to tempt musicians with money and influence, but anyone who enters the sports agency business, no matter how famous, will probably do so as an underdog.
This story will appear in the Feb. 10, 2024, issue of Billboard.
From Celine Dion to Joni Mitchell and Allison Russell, Canadian artists made a big splash at the Grammys last weekend.
But there’s one Canadian music executive who also cleaned up. She may be the wealthiest, most influential, yet under-the-radar woman in the country’s music industry: Golnar Khosrowshahi of independent publishing and management company, Reservoir Media.
Among the 10 Grammy honours for Reservoir Media is Joni Mitchell at Newport, who won in the folk album category. The legendary singer-songwriter also made her Grammy performance debut. Following a brain aneurysm in 2015, Mitchell had stopped performing, but in 2022 she made a triumphant comeback at the Newport Folk Festival, bringing her living room jam sessions — Joni Jams — to the festival stage. At the awards, she took the stage accompanied by frequent collaborator Brandi Carlile, cello and violin duo SistaStrings, and Canadian Allison Russell on clarinet.
The NYC-based Reservoir firm has offices in L.A., Nashville, Toronto, London and Abu Dhabi and signed Mitchell to an all-encompassing global music publishing admin deal in 2021.
Notably, Reservoir is owned by the Iranian-Canadian Khosrowshahi family, who founded and then sold the Future Shop home electronics chain to Best Buy in 2001 for $580M. Reservoir is run by daughter Golnar, a classically trained pianist with impeccable business credentials.
The music firm now represents 150,000 copyrights and 36,000 master recordings that include the Tommy Boy and Chrysalis catalogues.
In addition to Joni Mitchell, Reservoir also represented winners by boygenius, SZA and Killer Mike. – David Farrell, Rosie Long Decter and Richard Trapunski
Charlotte Cardin Tops 2024 Juno Awards Nominations
Charlotte Cardin has earned the most nominations for the 2024 Juno Awards. The breakthrough Montreal pop singer-songwriter got six nods, including artist of the year, album of the year and pop album of the year (99 NIGHTS), single of the year (“Confetti”) and TikTok Fan Choice. She’s also nominated for songwriter of the year.
Daniel Caesar and TALK follow with five nods each. Allison Russell, Aysanabee, Connor Price, Lauren Spencer Smith, Tate McRae and DVBBS each received three nominations.
The nominations were announced on Feb. 6 in a press conference at the CBC Building. Comeback artist Nelly Furtado, who’ll be performing as well as hosting the broadcast ceremony, was a surprise guest at the nominees announcement. She also received a nomination for “Eat Your Man,” her collaboration with Dom Dolla, for dance recording of the year.
Punjabi-Canadian artist Karan Aujla, a cover star for Billboard Canada’s inaugural digital cover, was also nominated for breakthrough artist of the year and announced as a performer at the Junos ceremony at the Scotiabank Centre in Halifax on March 24. He follows fellow cover star AP Dhillon, who played the first full Punjabi performance at the awards last year. Joining Aujla as performers will be country breakout Josh Ross and singer-songwriter TALK.
Another Punjabi-Canadian artist, Shubh, is nominated for the TikTok Fan Choice, a fan-voted award, along with Aujla, Cardin, Ross, Caesar, DVBBS, Tate McRae, ThxSoMch and Walk off the Earth.
McRae’s “greedy,” which has topped the Billboard Canadian Hot 100 multiple times, is also nominated for single of the year, along with Cardin’s “Confetti,” Caesar’s “Always,” LU KALA’s “Pretty Girl Era,” and TALK’s “A Little Bit Happy.”
Nominated with Cardin for album of the year are Néo-Romance by Alexandra Stréliski, NEVER ENOUGH by Daniel Caesar, Mirror by Lauren Spencer Smith and Lord of the Flies & Birds & Bees by TALK.
Cardin, Caesar, Smith and McRae, all relatively young artists, are all nominated for artist of the year as well, along with the legacy artist of the category, Shania Twain.
The Junos will be broadcast live on CBC from Halifax’s Scotiabank Centre on Sunday, March 24. Tickets for the show and the JUNO Week events are on sale at ticketmaster.ca/junos. The majority of the awards will be presented at The Juno Opening Night Awards the night before the main ceremony on March 23.
Find the full list of nominations here and interviews from the red carpet at ca.billboard.com – Richard Trapunski
How Canadian Music Took Over 2024 NHL All-Star Weekend
Toronto was alive with music at the 2024 NHL All-Star Weekend – not just on the ice, but all around the city. As the hockey spectacle returned to the city for the first time since 2000, and to Canada for the first time since 2012, the multiple-day event brought live music from major stars including Nelly Furtado, the Kid Laroi and Diplo.
As the stars of the game played each other in skills competitions and 3-on-3 hockey, music was an integral component. Each of the four teams chosen by an NHL player was co-captained by a celebrity: Tate McRae, Justin Bieber, Michael Bublé and Will Arnett. They weren’t just there to sit on the bench, but they helped choose each team at the player draft on Thursday night (Feb. 1). Bieber even helped out with the players’ on-ice warm-ups.
“We went all-in [with music] this year,” said Steve Mayer, the NHL’s Chief Content Officer. “We’re so happy that we have what represents not only the best in the NHL coming here, but in our minds, the best in Canadian music. And being here in Canada with seven Canadian teams, we better know our Canadian music.”
The headliner of this year’s NHL All-Star Game was one of the biggest artists in the world. McRae comes from a hockey family, and the sport’s culture is a major part of her current image. So it felt natural to see her perform on three different stages on the ice in a glittery top with six dancers and the production value you might see at a big award show.
“For the past year or two years now, I feel like I’ve fully immersed myself in the hockey world,” McRae told Billboard Canada.
Michael Bublé said he’s proud seeing what McRae has accomplished and called her before the game.
“I told her I was happy for and proud for her,” he remarked. “And as a Canadian, it made me happy to see another young Canadian breaking through….Honestly, we’re kind of dominating music right now. We are sending a ton of artists out there, and we’ve already got a ton of career artists out there. This little place made a bunch of great ones.”
The star factor revved way up on Thursday night (Feb. 1), when Justin Bieber played an invite-only concert at the 2,500-capacity venue History, his first gig in over a year. Diplo, The Kid Laroi and Nelly Furtado also played at concerts over the weekend, but Bieber’s was the one that captured the most headlines and social media attention in a set that spanned his whole career. – Richard Trapunski
Last Week In Canada: Drake’s OVO Sound Partners With Santa Anna
It’s time for another quick whirl around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. Are you asking yourself “Hey, Wha’ Happened?!” amid this week’s overhaul at Capitol Music Group? Here’s a rundown. When you’re done processing that, get a readout of the most powerful people in the music biz with the latest Power 100 list.
Merlin, the global digital licensing agency for the independent music industry, has spent the last few months enhancing its finance, data analytics, software and member operations teams with numerous new hires and promotions.
Experienced financial controller Carol Zuma-Hall, formerly finance lead at Platoon and head of finance at The Orchard, joined Merlin to oversee its technical accounting and compliance related finance activities. Merlin’s new director of insights is Martin Vovk, following a dozen years at Sony Music. He’ll conduct in-depth data analysis and manage insights communications. Following a lengthy stint consulting for Merlin, Gary Watson made it official by taking the director of data operations role, where he’ll manage data flows and data visualization projects. Reporting to Watson will be Maria Lavric, who was appointed manager of data operations. She’ll handle non-financial trends data and other reporting. Matthew Price was right for the data engineer role and will develop what Merlin calls its “Data Lake,” which processes nearly 1 billion rows of data daily (FUN!!!). Joining the team as a paralegal is Emillia Walsh, who’ll scrutinize copyright infringement claims and just overall enhance the organization’s legal apparatus. Molly Kempen is the new royalty reporting coordinator, responsible for processing statements and keeping deadlines.
“The expansion of our multi disciplinary data analytics team this year is a testament to Merlin’s ongoing commitment to delivering value,” said Charlie Lexton, Merlin’s COO. “Each new Merliner brings a unique set of skills that are instrumental in our evolution. We are excited to see their contributions enhance our operations, improve our data capabilities, and further strengthen our relationships with Merlin’s global membership and digital partners.”
Data crunchers aside, Merlin also welcomed Simon Stride last year as a development manager, overseeing software projects from soup to nuts. Over at member operations, Alice Moss joined as senior manager, focusing on day-to-day support of Merlin’s members and working on ways to address operational issues between members and digital partners. Finally, Mariah Mu and ex-intern Ben Sperling have joined as coordinators on the member and partner success team. It should be noted that Mu is based in Bangkok and serves as the Merliner contact for members and partners in the entire Southeast Asia region.
“The integration of Alice, Mariah, and Ben into our Member & Partner Success team marks a significant enhancement in our capability to serve our members effectively,” said Jim Mahoney, svp of member & partner success. “Alice’s experience, coupled with Mariah’s knowledge of the digital and Southeast Asian marketplace and Ben’s keen approach to process improvement and communications, creates a dynamic synergy. This team embodies our commitment to excellence, ensuring that each member and partner experiences the full benefit of Merlin’s expansive network and resources.”
Meanwhile…
Warner Music Denmark promoted industry veteran Karen Vincent to general manager of the Copenhagen-based imprint. She reports to Mark Fry, president of Warner Music Nordics. In her capacity as marketing director, a role she’s held since 2017, Vincent has worked campaigns for regional artists including Christopher, Gobs and Nicklas Sahl, among others, and also has assisted in global releases from the likes of Bruno Mars and Dual Lipa. Prior to WMG, Vincent was senior product manager at Copenhagen Records while concurrently working as the global publicist for Danish rockers Volbeat. At the dawn of her music career, Vincent held gigs at Sony Music and EMI Music as well. “It’s great news that Karen has agreed to run Warner Music Denmark,” said Fry. “She’s been an indispensable part of the team, crafting incredible campaigns for local, regional and international artists, and I can’t wait to work with her as we continue to support the best Danish creative talent.”
Reactional Music, the maker of an interactive music engine for video games, hired Epic Games veteran Ben Lumsden as head of business development, Unreal. In his new role, Lumsden will oversee Reactional’s work developing partnerships across music, games and creator worlds, focusing on use cases built on the Unreal games engines developed by Epic Games. Speaking of… at Epic, he rose to senior business development lead in support of the company’s media and entertainment operation in Europe. Prior to Epic, he worked in virtual production on films and games such as District 9, Star Wars: The Force Awakens, Avengers: Age of Ultron and Godzilla, among others. He is also an accomplished composer for films. “Music and creativity needs great tech and creative minds to enable the new generation of music delivery, consumption and creation,” said Lumsden. “The consumer is more sophisticated, more creative and they spend more time in digital worlds. Music and audio has such an important role to play in the new era of gaming and creator worlds as consumption habits change to become part of these digital worlds.”
Noble Steed Music, the artist management company and label that boasts an “intuitive and patient approach to artist career development,” hired industry veteran Evan Levy as senior manager and content director. He arrives from Amazon Music, where he managed audio content for the last two years. Levy is tasked with building out the company’s content team, which will develop music-centric media, podcasts, social content and more. He’ll report to NBS founder Jason Spiewak. Prior to Amazon, Levy held key leadership positions at SiriusXM Pandora, CBS Radio, ABC News Radio and MTV Networks. “We are thrilled to welcome Evan to the Noble Steed Music family,” said Spiewak. “Evan’s expertise and creative vision will undoubtedly elevate our content and reinforce our commitment to delivering exceptional entertainment experiences to the masses.”
Curb Records‘ national director of promotion Mike Rogers is set to retire, effective March 1. Rogers, a 35-year radio promotion veteran, has been with Curb Records since 2002 and was previously part of the promotion team at CBS/Sony. Rogers shared: “[Curb Records chairman] Mike Curb’s belief in me these last 21 years was unparalleled. I was and always will be proudest of all we have accomplished in my time at Curb. You entrusted me to give your music its best shot and I hope I made you proud. To have actually learned from a legend will always be a crowning achievement in my career. Now, it’s time to ‘do some life’ with my wife, Laura, and our two daughters, all of whom sacrificed a ton as I lived out that road life as a radio promotion rep.” –Jessica Nicholson
UTA promoted 104 individuals across 25 departments, including music and comedy. In the interest of brevity, let’s stick to music, where the agency upped Grace Cunningham, St. John Faulkner, Sammy Gardiner, Anastasia Klochkivska, Taylor Krebs, Joe Marino, Matt Popper, Ashley Ramos, Katie Sexton, Evan Steinberg, Tyler Stimmel and Kingsley Williams to coordinator. UTA also promoted Tom Grainger, Alexis Lesko, Tom Matthews, Lolo McCluskey, Sheq Milli and Jamie Waldman to agent. The company stressed that a majority of those elevated to agent emerged from UTA’s Agent Training Program, adding that women constituted more than 50% of the promotions announced.
RADIO, RADIO: Warner Music Nashville bumped Andy Flick up to national director of radio, effective immediately. Flick, a longtime Sony pro who joined WMN in 2021 as regional manager, radio (North), will continue reporting to vp of radio Anna Cage. In the last three years, Flick has worked campaigns for Dan + Shay, Gabby Barrett and Zach Bryan, among many others … Happy retirement to NPR OG Linda Wertheimer … Canadian media conglomerate Bell Media is selling 45 of its 103 radio stations across the country because it lacks viability.
Lina Tebbs was named director of UK Production Music for Warner Chappell Music, reporting to UK managing director Shani Gonzales. She takes over for Kate Alderton, svp of operations and finance, who has been running the department for the last two years. In her new role, Tebbs will be tasked with scouting ways to service WCMs giant catalog to the film, TV, radio and advertising industries in the UK. She and her team will also work with other like-minded teams around the globe on cross-market opportunities. Tebbs arrives from Felt Music, where she was global head of business development and marketing. Prior to joining Felt in 2019, Tebbs held leadership roles at Audio Network and EMEA. “With Lina at the helm of our operations in the UK, the team will have a fresh outlook and exciting new ideas for how to build on our brand and further grow our roster and relationships,” said Gonzales.
Stem, the 9-year-old music distribution and payments platform, awarded four of its key leaders with promotions this week. Atop the table is Seth Faber, who was upped from svp of artist & label strategy to general manager of the company. In his elevated role, Faber will oversee artist marketing/development, commerce, international, customer success, content operations, brand marketing and product. Todd Perry is now vp of artist and label relations, hip-hop & R&B. Previously head of artist & label relations, hip-hop & R&B, Perry is credited with signing Veeze and for his work Jeezy’s latest album. Natalie Sellers, who joined Stem in 2018, is assuming the role of senior director of artist & label commerce & partnerships, where she’ll work to expand the company’s network of partners and create marketing and development opportunities. Finally, Lexi Roney was promoted to director of brand marketing following her time as marketing manager at Stem. As director, Roney will be responsible for leading and expanding all branding and partnership initiatives for Stem Distribution. The company said Faber and Perry will continue to report to president Kristin Graziani, while Sellers and Roney frame up to Faber.
CSW Publicity amped up its music division with the hiring of Heidi Anne-Noel as senior vp of music publicity. She’ll work alongside evp and founder Cara Woodnicki on all things music. Anne-Noel joins CSW from BMF, where as a vp she oversaw campaigns for clients including ONErpm, Awich, Abigail Barlow and others. Prior to BMF, she was at SiriusXM/Pandora and earlier at Capitol Records, where she worked closed with Katy Perry, Capital Cities, Sky Ferreira and others. Woodnicki comments, “Heidi is an incredible asset to any team and one of the best publicists I know, I’m beyond thrilled to be working alongside her again, this time at CSW.”
Derek Patten has returned to agency EastCoast Entertainment as director of artist services. Patten’s first spin at ECE was in 2018, when he helped lay the framework for the department he now leads. His background experience covers several professional areas including film (The Foot Fist Way) and live entertainment (Royal Caribbean Cruise Line). “We are delighted to have Derek with us again,” shares ECE’s President, John Wolfslayer. “His wealth of experience and unwavering dedication to the success of artists make him an invaluable asset to our team.”
Pophouse Entertainment, the creative production company co-founded by ABBA’s Björn Ulvaeus, announced a slew of promotions and new hires. Linda Höljö has been named COO, Natalia Fontecha is head of capital raising and investor relations, Sophie McKibbin is head of business and legal affairs, while Ryan Amstad is head of new production development, and Jon Spalding commercial director. Over at Mamma Mia! The Party, the souped-up uber-immersive dinner theatre production in London, Sophie Arendt has been appointed managing director.
BOARD SHORTS: Worldwide Independent Network, a support group for independent music trade groups, welcomed five new members to its board: Dario Draštata (Dallas Records, Croatia), Fran Sandoval (IMICHILE, Chile) and Marty Ro (Sound Republica, South Korea) as directors, together with Alejandro Varela (S-Music, Argentina) and Sridhar Swaminathan (SIMCA, India) as observers. Zena White and Maria Amato were reappointed as Chair and Treasurer, respectively … Dewei Zheng resigned as a non-executive director of Chinese music platform Cloud Music (formerly NetEase Cloud Music), effective Feb. 15.
David J. Krystal, whose orchestration work can be heard in The Flash, IT, Shazam! and Hidden Figures, among others, recently launched his own company to support his work: David Krystal Music Service. In an announcement, Krystal’s company looks to “synthesize the rich tradition of classic Hollywood scoring and orchestration with the fast-paced and powerful blockbuster film scores of today” and pledges “meticulous attention to detail.”
ICYMI:
Capitol Music Group chief Michelle Jubelirer announced her abrupt exit this week … and a day later Tom March, then-president of Geffen, was named her successor. Lillia Parsa (pictured) was also brought in from UMPG as co-president of CMG … Warner Music chief Robert Kyncl telegraphed a 10% staff reduction … which resulted in the exit of Warner Chappell Australia’s longtime managing director … Ricardo Chamberlain was been named COO of Marc Anthoney’s Puntilla Music … The Nashville Songwriters Association International (NSAI) selected its leadership for the coming year … and Eliza Tew is director of brand partnerships/talent manager for Clay Busch’s new agency, SiX18 Media.
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