Business News
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News that Concord plans to buy Round Hill Music Royalty Fund for $1.15 per share sent Round Hill shares soaring 64.4% on Friday (Sept. 8), from $0.6875 to $1.13 per share. They finished the week up 62.6%, leading all music stocks by a wide margin.
The deal, which must be approved by at least 75% of Round Hill’s shareholders at the company’s Oct. 18 general meeting, values the rights in the fund at nearly $469 million. On March 6, an independent valuation from Citron Cooperman put Round Hill’s economic net asset value at $519.6 million, according to the company’s 2022 annual report. That puts Concord’s bid at a 9.7% discount to economic NAV — a vast improvement from the 46% discount the stock had been trading at before the deal was announced.
Round Hill competitor Hipgnosis Songs Fund was also a beneficiary of Concord’s announcement. Shares of Hipgnosis rose 15.7% to 0.923 pounds ($1.15) on Friday, bringing the stock’s one-week gain to 16.8%. Hipgnosis shares have been trading at a steep discount to the company’s net asset value — a measure of the company’s catalog, less liabilities — and hadn’t closed above 0.923 pounds since Sept. 27, 2022. The fact that Concord found a buyer at a price close to its NAV could have signaled to Hipgnosis investors that its shares should be trading closer to its NAV. Some Hipgnosis investors may have also believed that, like the Concord deal, Hipgnosis could also find a suitor that would bid close to the NAV.
Round Hill and Hipgnosis were — by far — the biggest gainers of the week. Overall, the 21-stock Billboard Global Music Index dropped 0.8% to 1,348.41. Year-to-date, the index has gained 15.5%.
No other music stocks had a double-digit gain, and just six others finished the week in positive territory. Twelve stocks lost ground this week and one stock, music streamer Anghami, was unchanged. French music streamer Deezer gained 6.8% and was probably helped by its announcement of a partnership with Universal Music Group to adopt a new system for calculating streaming royalties. Universal Music Group shares improved 3.8% to 23.52 euros ($25.20).
Stocks were down around the world this week. In the United States, the S&P 500 fell 1.3% and the Nasdaq composite dropped 1.9%. South Korea’s KOSPI composite index lost 0.6%. In the United Kingdom, the FTSE 100 was a bright spot with a slight 0.2% gain.
With the help of Round Hill and Hipgnosis, the eight stocks in the record labels and publishing category on the Billboard Global Music Index had an average gain of 10.3%. The other categories saw losses; four live music stocks had a 0.9% average decline, six streaming stocks dropped an average of 3.9% and three radio stocks had a 4.7% average decline.
LiveOne shares fell 10.4% on Friday following the company’s spin-off of its PodcastOne segment on the Nasdaq exchange. That brought its shares’ one-week loss to 21.8%. LiveOne distributed about 19% of PodcastOne shares to LiveOne shareholders of record as of Sept. 5, but the podcast company’s trading debut got off to a rocky start on Friday. Trading under the ticker PODC, shares of PodcastOne owner and operater Courtside Group fell 45.1% to $4.39 from a starting price of $8 per share.
The Recording Academy has promoted Todd Dupler to chief advocacy & public policy officer, effective immediately. In his role, Dupler oversees the advocacy division focused on championing creators’ rights and elevating policy issues that stand to affect the music community. He also orchestrates cross-departmental efforts to advance the overall advocacy goals of the Recording Academy […]
If it’s Friday that means another spin around the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across the music industry.
European indie labels body IMPALA unveiled a new board for the upcoming two-year term, with Francesca Trainini of Italian national association PMI elected president and Dario Draštata of Balkan regional association RUNDA tapped as new chair. Everlasting Records CEO Mark Kitcatt stepped down as president, but will continue as a board member and chair of IMPALA’s streaming reform group. Standing pat is Geert De Blaere of Belgium’s BIMA as treasurer and Helen Smith as executive chair. At the Vienna WAVES Festival and Conference, the trade body also reviewed its priorities for the new term, including a focus on streaming reform, artificial intelligence and growth in Central Eastern Europe. “The Central and Eastern European region is a huge market with amazing talent and I am excited to be able to chair IMPALA with the huge opportunities we have across streaming and the whole market,” said Draštata, whose RUNDA supports former Yugoslavia nations. For more information on the membership makeup and structure of IMPALA, click here.
Curb/Word Music Publishing promoted and added staff in its country music publishing department. Sarah Schumacher has been promoted to senior creative director, country publishing, while Calista Miller has joined the team as creative coordinator, country publishing. Schumacher previously worked at Disney Music Group and Darkhorse Music Management, before initially joining Curb/Word Music Publishing in 2021 as creative director of country publishing. Schumacher’s responsibilities include managing creative operations of the country songwriter roster and catalog, recently signing writer/producer Alex Kline into the Curb | Word Music Publishing family. Miller is a recent 2022 graduate of Belmont University’s Mike Curb College of Entertainment and Music Business and previously interned for Curb/Word Music Publishing’s country team. Miller’s primary responsibilities include coordinating and facilitating strategic writing sessions for the country writer roster, managing social media strategy for the department, and assisting in pitching/placing writer catalog, in addition to catalog administration duties. –Jessica Nicholson
Music B2B company Revelator hired Luciana Pegorer and Arturo Soler to co-pilot the firm’s expansion into the booming indie Latin American market. Formerly of Warner Music Brazil, Pegorer will lead Revelator’s Brazilian office, while music industry veteran Soler will lead the company’s LATAM office out of Mexico. “Revelator has always operated globally but we saw that to serve the fast-changing Latin American market, we needed highly qualified, creative professionals with deep relationships, who were natives to the local market” notes Revelator founder and CEO Bruno Guez. “We found them in Luciana and Arturo.”
NPR president and CEO John Lansing announced he’ll retire at the end of the year after a four-year tenure that involved navigating the COVID-19 pandemic and a recent budget crunch. He’ll remain in place until NPR’s board of directors identifies his replacement, the public radio giant said. “We are all immensely grateful to John for his principled and tenacious leadership through a turbulent time for NPR, our system and our nation,” said NPR board chair Jeff Sine. Prior to joining NPR, Lansing was the CEO of USAGM, overseeing several global networks including Voice of America.
ICYMI: Timothy Xu is the new chairman and CEO of Universal Music Greater China … Julie Keiko Fujishima announced she was stepping down as president of talent agency Johnny & Associates … Elliot Grainge is joining Warner Music’s global leadership team … and this week saw the passing of Clive Davis’ righthand man at Arista, Elliot Goldman.
Australasian collecting society APRA AMCOS promoted Jonathan Carter from head of legal & corporate services to chief operating officer. Carter is a 15-year veteran of the rights group and scored his current position in 2016. In his spare time, he sits on the Global Legal & Policy Committee of CISAC and was previously president of the Copyright Society of Australia. “Given our growth, size and strategic ambition, we need to look at how we’re going to operationalise and drive our strategic plan across the company, and similarly ensure we’re taking a holistic view in mitigating risk,” said Dean Ormston, Chief Executive APRA AMCOS. “Jonathan will be critical in helping us collectively drive forward on our strategic plan.”
The Massachusetts Institute of Technology not only has a music department, but it just hired its first-ever professor Jazz. Grammy-nominated alto saxophonist, composer, bandleader and MacArthur Fellow Miguel Zenón has joined the MIT faculty. “MIT is an incredible school with top-tier students and a creative and open-minded aesthetic,” says Zenón. “I’m extremely excited and honored to become part of the MIT family.”
Last Week’s Turntable: Former Asylum Co-President Joins Hitmaker
Concord, under the name Alchemy Copyrights, has agreed to acquire the share capital of Round Hill Music Royalty Fund Ltd in a proposed deal jointly announced on Friday that values the rights in the fund at worth nearly $469 million.
If approved, Concord would acquire the music rights that sit in the publicly-listed Round Hill Music Royalty Fund, which includes 51 catalogs and roughly 150,000 songs by artists like Alice In Chains, Bonnie Tyler, Bush, Bruno Mars, Céline Dion, Lady A, Louis Armstrong, The Offspring, Carrie Underwood, The Supremes, Wilson Pickett and Whitesnake.
Launched in 2010, Round Hill Music was among the first catalog funds to raise money from instititutional investors to acquire and administer song catalogs. But since its November 2022 listing on the London Stock Exchange in November 2020, Round Hill Music Royalty Fund Ltd. has, like its peers Hipgnosis Songs Fund Ltd., struggled with a declining stock price this year as high inflation and interest rates have pressured alternative investments.
News of the Round Hill-Concord deal,reported earlier by Reuters, sent the fund’s stock up nearly 65% on Friday to $1.13 a share from its previous close of $0.69.
Under the proposed deal terms, Round Hill shareholders would receive $1.15 in cash per share, which values the ordinary share capital of the company at roughly $468.8 million.
While Concord’s proposed cash offer represents a premium price, it still represents a discount of approximately 11.5% to Round Hill Music Fund’s economic net asset value per share of $1.30.
In 2022, Round Hill reported its overall group revenues rose 32% year over year to $32.4 million and its portfolio’s fair value rose 13% $602.6 million.
The deal will be put to a shareholder vote at Round HIll’s nex general meeting on Oct. 18 and needs 75% of votes to pass. A group of shareholders led by Josh Gruss, Round Hill Music co-founder and CEO, who own roughly 33% of the fund’s shares have already signaled they will vote in favor of the deal.
“The Board is pleased to present this opportunity for liquidity at a premium to both the share price and the IPO price, as well as at a narrow discount to economic net asset value per share,” commented Robert Naylor, chairman of RHM. “The recommended offer represents excellent value for shareholders.”
Concord CEO Bob Valentine said that since its 2020 IPO, RHM has built an “impressive portfolio” of songs that “stand the test of time” and asserted that his company is “well positioned to maximise the value of this portfolio for all of the songwriters and artists within it.”
He added, “This offer enables RHM shareholders to realise their investment in the business at an attractive premium to the undisturbed share price, while the transaction provides an opportunity to create value for all stakeholders.”
Creative Artists Agency (CAA) has a new majority shareholder, Artémis.
The Pinault family’s investment company, Artémis has agreed to acquire the stake in CAA previously held by global investment firm TPG.
Through the arrangement, announced Thursday (Sept. 7), CAA’s Bryan Lourd, Kevin Huvane, and Richard Lovett have each made long-term commitments to continue leading the agency and will remain as co-chairmen of CAA. Lourd is expected to be named CEO following the completion of the purchase, while Jim Burtson, who led the CAA deal team, will remain president of CAA.
Financial terms were not disclosed.
“As a leader in its field with an outstanding management team, a crystal-clear focus on providing world-class service to world-class clients and a tremendous track record of growth, CAA has all the relevant characteristics to be part of the Artémis family, adding increased diversity, both in terms of geographical footprint and business activities, to our other assets,” comments Francois-Henri Pinault, Artémis CEO in a joint statement.
Artémis, whose assets include many of the most prestigious brands on the market, will now become a major player in the worlds of entertainment and sports, through its investment with CAA.
Founded in France in 1992, Artémis’ consolidated assets top $40 billion, including Kering, the luxury goods group that is home to Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, and other luxury brands; the Christie’s auction house; Pinault Collection, the world’s largest private collection of contemporary art; and more.
CAA’s “exceptional insight, relationships, and access across key sectors,” Pinault continued, along with its reputation for collaboration and innovation, gives “the company a formidable role in driving global opportunities for its diverse and culture-defining clients. We look forward to supporting the agency’s very bright path ahead.”
Singapore-headquartered global investment firm Temasek will remain a minority investor in CAA. CMC Capital remains a CAA strategic partner.
Allen & Company LLC served as financial advisor to CAA, and Wachtell, Lipton, Rosen & Katz served as legal counsel. Rothschild & Co was financial advisor to Artémis, and Cleary Gottlieb Steen & Hamilton LLP served as legal counsel. Ropes & Gray LLP was legal counsel to TPG. Sullivan & Cromwell LLP served as legal counsel to Temasek.
The transaction is expected to be completed later this year, subject to the satisfaction of closing conditions.
Ingram Entertainment, the second largest U.S. music wholesaler, has begun telling its accounts that it will begin shutting down its music operation, with plans to close by the end of this year, sources tell Billboard. Sources suggest that Ingram’s music operation generates about $200 million a year in revenue. Beyond music, there are indications that the […]
As the summer break comes to an end, the Spanish recorded music industry is celebrating a remarkable first half of 2023. PROMUSICAE (Productores de Música de España), representing over 95% of the Spanish recording industry, has just unveiled the numbers — and they are looking positive. The recorded music industry has generated a total revenue of 214.3 million euros ($229.2 million) during this period, reflecting an impressive growth rate of 11.53% compared to the same period in 2022 when the income stood at 192.1 million euros ($205.4 million).
Antonio Guisasola, president of PROMUSICAE, expressed his optimism regarding the industry’s performance in 2023. “To keep presenting growth figures over the world average is a satisfaction to us and encourages the Spanish recording companies to continue investing in Spanish talent, so that our artists succeed within and out our borders,” said Guisasola in a press release.
The digital market continues to be a driving force behind this growth, with a substantial increase of 12.82% compared to the same period last year. Digital formats now account for 88% of the industry’s turnover, totaling 188.6 million euros ($201.7 million). That’s nearly all streaming, which captured 87.8% of the total market and generated revenues of 188.2 million euros ($201.4 million) — up 13.26% compared to the first half of 2022.
Audio streaming represented 84.32% of all consumption and contributed 156.9 million euros ($167.9 million) to the industry. Video streaming, while representing over a third of total music consumption time, accounted for 29.1 million euros ($31.1 million).
Guisasola adds, “Numbers are not deceptive and consumption of recorded music is via streaming, though Spanish fans still want to have a bond with their favorite artists through vinyl, a format that follows the path of sales growth, offering very well cared for products that provide an added value to consumers.”
The physical market has also shown resilience in the first half of 2023, maintaining its share of the total market at 12% and experiencing a growth rate of 2.91% compared to the same period in 2022.
Sales of vinyl, in particular, have outperformed CDs, constituting 56.2% of physical sales and generating revenues of 14.4 million euros ($15.4 million) — up 6.32%. CD sales, meanwhile, declined 1.32%, contributing 11 million euros ($11.8 million), making up 42.9% of the physical market revenues.
Guisasola concludes in the press release, “Support the Spanish recording industry so that it does not lose its own boost and can seize the great momentum experienced by Latin music to consolidate its growth in our country and abroad.”
Courtesy Photo
Since the end of August, there have been reports that BMI is in advanced talks to sell itself to the private equity firm New Mountain Capital. A deal has yet to be signed but the possibility has raised concerns among songwriters about what it will mean for the collective management sector if one of its largest organizations becomes a business owned by private equity.
Such a move would take BMI in a new direction, away from the traditional model – based on non-profit and transparent operations—of the CISAC community. For CISAC and our global network of 227 Collective Management Organisations (CMOs, or societies), however, it also highlights the strength and value to creators of the global collective rights management system. The collective management model has been successful for over a century, remaining faithful to its core principles, while transforming and adapting to keep pace with the rapidly changing business environment.
BMI will stay connected to this community. In anticipation of the new direction it has taken in the last year, it has moved from being a full CISAC member to a CISAC “client,” a new category that was established in 2020 to accommodate the new types of rights management entities — including SESAC, Soundreef and Nextone – which have emerged.
Clients make up a very small group of “for-profit” entities that differ from the overwhelming majority of CISAC members, which operate on a non-profit basis. Clients are not subject to all of the traditional transparency and business rules that full CISAC members abide by, but still have access to CISAC’s systems and data exchanges that help the global music market function
By accepting for-profit entities as clients, CISAC maintains its inclusiveness and diversity, while not compromising on the core conditions of membership.
It is those core membership conditions which provide the unique value of the global network. Full members, such as ASCAP in the US, PRS for Music in the UK or GEMA in Germany, are required to meet key fundamental rules:
to operate on a non-profit basis or be controlled by their affiliates
to respect CISAC’s global standards of governance and professional rules
to be fully transparent in their financial reporting and share information with the rest of the CISAC members
As a global confederation, CISAC respects individual creators’ decisions on whom they entrust their rights to. It equally respects members and clients’ decisions on how they manage creators’ rights. The global song rights market is changing rapidly, with growing competition between different types of royalty collection bodies at a time when the cost pressures of managing digital collections and distributions has never been greater.
These changes are inevitable and they are good, if they have the end of result of better serving the creators who are at the center of our business.
In this transforming landscape, the vast majority of CISAC’s member societies remain non-profit entities which abide by all CISAC rules. Full CISAC members work only for creators and rightsholders, not shareholders. Their transparency obligations ensure high levels of integrity and best practice across the network. Creators and rightsholders, not financiers and investors, are assured a controlling role in their decision-making. Creators sit on our societies’ Boards of Directors. You’d be hard pressed to find other entities in the music industry which have music creators as their Board members.
The global collective management system gives creators a strong, united voice to lobby for creator-friendly legislation, develop modern systems for data exchange, adopt best practices and maximize collections and distributions. From turning around failing markets such as Greece, Turkey and India, this community continues to play an indispensable role for creators and publishers worldwide.
Our sector remains the only part of the music industry that puts the creator front and centre of everything it does. While more commercial ventures may be tested in our fast-evolving market, the fact remains that the collective management system is the most robust, reliable and fit-for-purpose model in serving creators.
Gadi Oron is the director general of the International Confederation of Societies of Authors and Composers (CISAC), a Paris-based rights organization.
The management division of Kygo‘s Palm Tree Crew has partnered with Live Nation. The new partnership is intended to expand opportunities for Palm Tree Crew Management’s dance/electronic-focused roster, which currently includes Kygo, Dean Lewis, Gryffin, Sam Feldt, Frank Walker, Forester, Thomas Jack and Petey Martin. Palm Tree Crew Management was founded in 2018 by Kygo (born Kyrre […]
Exceleration Music formed a strategic partnership with Azadi Records, an India-based independent label co-founded in 2017 by Mo Joshi and Uday Kapur. Under the deal, which marks Exceleration’s first in Asia, Exceleration has made a financial investment in the label to help fuel its growth. Azadi will also benefit from access to Exceleration’s worldwide team and infrastructure, with Exceleration partner Charles Caldas joining Azadi’s board to help guide the label’s strategy, performance and development. Azadi Records artists include Indian hip-hop duo Seedhe Maut, producer Sez on the Beat and rapper Prabh Deep, who won a Toto Funds the Arts (TFA) award — a major independent music prize in India. Forthcoming releases on the label include Seedhe Maut’s mixtape Lunch Break, an EP from Ranj & Clifr and a collaborative album from United Kingdom-based rappers Sonnyjim and PAVAN.
Encore Luxury Coach Leasing acquired Nitetrain Coach Company in Whites Creek, Tenn., making it the largest entertainer coach leasing company in North America. The acquisition brings Encore Luxury’s fleet to more than 145 coaches. Under the deal, Encore’s leasing operations will have offices in Phoenix and Nashville, with over 25 maintenance technicians. Touring clients of the combined companies include Nickelback, Thomas Rhett, Bailey Zimmerman, Lauren Daigle, Ben Harper, Barry Manilow, Beck, Phish and Blink-182.
Virgin Hotels partnered with Sofar Sounds for Hear This!, a new monthly concert series that will showcase emerging Sofar artists. The series will be open to the public, with Virgin Hotels’ Know members receiving premier access to reserve tickets ahead of the public onsale. Attendees of the concerts will also have access to exclusive Spotify and Apple Music playlists featuring highlights and recommendations from Hear This! artists. Members of Virgin’s rewards program, Virgin Red, will also be able to redeem Virgin Points to join Sofar Sounds events at Virgin Hotels, including Hear This! Virgin Hotels will also offer preferred room rates to all Sofar Sounds artists to help alleviate the impact of the pandemic on touring artists. Hear This! kicks off on Sunday (Sept. 10) at Virgin Hotel Dallas, with future iterations in Chicago, Dallas, Nashville, New York City, Edinburgh and the recently opened Glasgow location. Get more details here.
One Media iP acquired the licensor’s income share — or the income that is generated from digital exploitation — of the “Entertain Me” catalog of rights, which includes more than 15,000 tracks performed by artists including Dean Martin, Gloria Gaynor, Judy Garland, Ray Charles and Louis Armstrong. The acquisition was undertaken by One Media’s Harmony IP asset release program, “which allows music rights holders advanced access to the future earnings of their intellectual property by purchasing a portion of their rights up front,” according to a press release.
Also at One Media iP, the company renewed its partnership with music distributor The Orchard; the deal includes a $1 million recoupable advance to One Media “to be used to enhance catalogue enrichment,” according to a press release. The advance is recoupable against future sales by One Media.
The Pennsylvania Convention Center Authority (PCCA) board of directors approved a five-year contract renewal for ASM Global as its venue management company. The new agreement commences on Dec. 1, 2023, and runs through Nov. 30, 2028. ASM Global is “planning to bring many of its most innovative designs to a leading group of convention centers beginning with PCCA,” according to a press release.
Allseated, which offers virtual tour technology and floorplan design tools for venues, raised $20 million in funding, including capital from Level Structured Capital (an affiliate of Level Equity) and existing investors Magma Ventures, Vestech Partners, NYFF and WGG. The money will be used to further scale Allseated’s space visualization and collaboration platform and fuel its global expansion. Along with the new funding, the company is spinning out its Meetaverse division; according to a press release, “this includes a brand-new entity with a dedicated mission: to pioneer immersive experiences, such as virtual events and corporate environments, within an emerging market landscape.”
Full-service artist management company and record label Red Music Rising, which is managed entirely by Indigenous individuals, struck an exclusive global distribution deal with Warner Music Canada/ADA Canada. The Red Music Rising roster includes Wolf Saga, Boogey The Beat, Logan Staats and Nimkish.
Grant Avenue Studio, a legendary recording studio based in Hamilton, Ont., that has hosted artists including Gordon Lightfoot, Johnny Cash, U2 and Sarah McLachlan, was sold to music and film industry executives Mike Bruce and Marco Mondano. Bruce is a musician who owns and operates film studios, including Aeon Bayfront Studios in Hamilton, while Mondano owns D.C. Music, a rehearsal, recording and live production studio in Toronto. Grant Avenue Studio was established in 1976 by Daniel Lanois and his brother Bob, who later teamed up with engineer Amy King to helm the studio until the spring of 2023. Under its new ownership, new offerings at the studio will include an artist lounge, a writers’ studio, film and photography location opportunities and artist development programs.
Deezer expanded its partnership with leading Latin e-commerce platform Mercado Libre, becoming the official music streaming partner for the company’s new retail and entertainment subscription program, Meli+, which has been introduced in Mercado Libre’s main markets, Brazil and Mexico. The program includes a full year of music streaming from Deezer, among other elements. Brazilian artist Ana Castela has been appointed as the official Deezer ambassador on Meli+ and will star in joint campaigns and promotion.
Symphony, an artificial intelligence-powered marketing operating system for artists, creators, managers and independent labels, closed a $1 million pre-seed fundraising round from investors including Spice Capital, GoldHouse Ventures, LVRN Records, Guin Records, former Motown Records CEO Ethiopia Habtermariam and artists including 21 Savage and 24kGoldn. The SymphonyOS platform uses artificial intelligence to analyze millions of data points in order to create music marketing strategies for artists and labels. Since its beta launch in April 2022, SymphonyOS has processed over $750,000 worth of advertising budgets.