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Sibling duo Mau y Ricky launched their new independent label, Why Club Records, in partnership with Warner Music Latina. According to a press release, the new imprint will not only act as a home for the duo — who were previously signed to Sony Music Latin — but will also “look to impact culture through music with a purpose, supporting artists who have something to say and want to break through the mold.” About Why Club Records, Mau y Ricky said: “We trust [Alejandro] Duque and [Roberto] Andrade as the ideal partners for this new stage. We are working on the most important album of our career so far.” The Miami-based duo’s first single under the new label, “Vas a Destrozarme,” will drop Oct. 5. – Griselda Flores
Round Hill Music acquired Austin-based neighboring rights agency Rident Royalties, which deals with film/TV composers and production music. With the acquisition, Round Hill’s existing neighboring rights platform, Sound Hill, expands to more than 1,200 performers and 120 record labels. The deal also allows it to tap the production music and TV/film score neighboring rights markets and expand into additional territories. Rident Royalties owner/president Chris Kennedy will serve as co-head of Sound Hill alongside Róisín Brophy.
Virgin Music partnered with independent publisher, record label and management firm Position Music, which boasts a catalog of more than 35,000 songs. Under the deal, Virgin Music will distribute Position Music’s new releases and existing catalog while helping to market, promote and develop Position’s frontline label roster, which includes artists, songwriters and producers such as Judah & the Lion, Kyle Dion, Ryan Oakes, Kid Bloom, Layto and Fantastic Negrito.
Atlanta-based management company Crown World Entertainment, founded by CEO Vincent Searcy, acquired Indie Distro and, with the purchase, launched Crown World’s new independent distribution arm, CWE Distro. The company will now offer music distribution to all streaming platforms as well as data insights, brand strategy, digital marketing, synch licensing, neighboring rights and content monetizations. For $29.99 a year, emerging artists who sign up for CWE Distro will keep 100% of their royalties, receive guaranteed distribution to more than 50 digital service providers and more. Plans for established artists are available by invitation and require no subscription fee. The first releases from CWE Distro are “Find Someone” by singer-songwriter Eric Bellinger and WifeyBaby’s “Stingy.”
Independent podcast company Acast partnered with royalty-free music platform Slip.Stream in a deal that will allow Acast podcasters to access more than 70,000 songs for use in their content. All 100,000 Acast podcasters will receive “Pro Level” access to Slip.Stream free for six months and a discount offer to upgrade to an annual Pro plan after that.
In other Acast news, the company partnered with podcast network Luminary to expand the reach of selected Luminary Original podcasts. Under the agreement, five shows — including Joking Not Joking with Mo Amer and Azhar Usman and How I Masaba with Masaba Gupta — will be made available to listeners across all platforms via Acast. Additionally, Acast will serve as Luminary’s exclusive monetization partner for these podcasts across all platforms. Luminary will also utilize Acasts’s recently launched Acast+ Access capability to allow listeners to access exclusive content on the listening app of their choice.
ASM Global will operate the new, 185,000-square-foot Henrico Sports & Events Center slated to open at Virginia Center Common in Glen Allen, Va. in October. The Henrico Sports & Entertainment Authority board of directors, which oversees the center, approved an initial five-year contract in July, with the option to extend it annually for up to five additional years. Under the deal, ASM Global will provide staff and oversee the venue’s day-to-day affairs, including managing the box office, contracting with vendors, handling maintenance, event management, food and beverage concessions and licensing and permits. The Henrico Sports & Entertainment Authority will continue leading on scheduling to make sure the venue, which boasts a capacity of 3,500, is available for county events including high school graduations and tournaments. ASM Global will help to fill off-peak times with local programming including sports clinics, leagues and camps.
Also in ASM Global news, the company secured venue operations and management rights for Connect Conference Centre (known as C3 and formerly known as Opportunity Pavilion) in its second Dubai-based deal after the Coca-Cola Arena. Located in Expo City Dubai, C3 will host a number of events for the upcoming United Nations Climate Change Conference (COP28) which runs from Nov. 30-Dec. 12.
Lastly at ASM Global, the company renewed its management deal with the 475,000-square-foot Huntington Convention Center of Cleveland for five years. Forthcoming plans at the venue include the creation of a Sky Lounge with a view of the Rock and Roll Hall of Fame and Lake Erie.
Dreamus, a Korean entertainment company and subsidiary of Korean multinational SK Planet that handles distribution and events for K-pop artists including Twice, Psy and MissA, is now using the cryptocurrency and blockchain platform Avalanche. Under the partnership, users of Dreamus’ ticketing app OK Cashbag can now buy Avalanche-backed tickets, allowing Dreamus “to build a ‘Blockchain Ticket Total Solution Service,’” according to a press release. The company will use Avalanche to enable easy digital transactions, get around scalpers, stop secondary market abuse and address issues around counterfeit tickets. Dreamus plans to launch a secondary ticketing marketplace later this year.
House music label Defected Records partnered with demo submission platform LabelRadar, which is under the umbrella of The Beatport Group’s music services division. Under the deal, Defected and its sub-labels (including D4Dance, DFTD, Glitterbox, Big Love, Soulfuric, Nu Groove, Classic, 4TTF, DVINE Sounds, Stay True Sounds and The Remedy Project) will now field demo submissions from artists around the world via LabelRadar’s streamlined process. This marks the first time in Defected’s history that the label has allowed demo submissions.
Amazon Music is the exclusive livestream partner of this year’s Life is Beautiful Music and Art Festival, which returns to Downtown Las Vegas for its 10th anniversary Sept. 22-24. Sponsored by JBL and Boost Infinite, the livestream will be available on Prime Video and the Amazon Music channel on Twitch starting at 5 p.m. PT each day of the festival.
Afterparty, a platform that scales one-to-one fan interactions for creators, has raised $5 million in funding in a round led by Blockchange Ventures with participation from existing investors Acrew Capital, Act One Ventures and Tamarack Global along with new investors Wilson Sonsini and Vinny Lingham. Afterparty will use the funding for product development, including AI voice, photo and video messaging. The new AI platform, dubbed Afterparty AI, will give fans “24/7 on-demand access to conversations with their favorite creator’s AI,” with images and videos created with the platform becoming “one-of-a-kind collectibles unique to each fan who generates them – all of which are verified on the blockchain and can easily be shared on social platforms,” according to a press release. Each interaction and piece of content fans share becomes a “point of access” to exclusive experiences allowing them to connect with creators one-to-one.
Live Music Society, a non-profit that has given over $3 million in grant funding to small venues and listening rooms across the United States since 2020, has partnered with international music residency The House of Songs to reestablish the latter’s presence in Austin. Under the deal, House of Songs — which has brought together artists from over 30 countries for songwriting sessions — will establish a new hub in Austin after pulling out of the city during the pandemic.
Levellr, a company that helps artists use messaging tools like Discord to reach fans, raised a $1 million pre-seed round led by Crush Ventures. The company’s clients include Fred again.., Pink Pantheress, Gorillaz, Swedish House Mafia and Maisie Peters. The money will be used to hire additional employees and grow into new verticals including sports and gaming.
Music rights and metadata management software platform Orfium signed an agreement with Japanese entertainment company Avex to manage its music catalog on YouTube. Under the deal, Orfium will work to maximize the monetization of Avex’s repertoire using its AI-based matching technology.
Music financing service RoyFi teamed with earthprogram, a quasi-record label and provider of business development solutions for the music industry. Under the partnership, artists can apply to access funds directly through RoyFi via the new earthprogram website, allowing a “consistent through line of support and career development from the beginning of consultancy with earthprogram through capital provision and financial literacy education with RoyFi,” according to a press release.
Instrument brand Gibson and its charitable foundation, Gibson Gives, partnered with Purdue Polytechnic Institute’s School of Mechanical Engineering Technology (MET) program that will provide experiential learning to students in MET’s guitar lab. Via Gibson Gives, Gibson will gift guitars from its collection to be showcased in the class’ lab; provide direct monetary support to the Purdue guitar lab to ensure it remains operational throughout the year and facilitate the hiring of undergraduate teaching assistants; assist in providing essential lab supplies and materials required to design and manufacture stringed instruments; and provide insights and experiences from Gibson’s trained luthiers and executives throughout the semester. Support will extend at least through the 2023-24 academic year.
UBS partnered with Billboard to help increase awareness about the financial resources available to all entertainers.In the first of four episodes, UBS’ Wale Ogunleye sat down with Sherrese Clarke Soares to explore her role within the world of music finance as the founder & CEO of HarbourView Equity Partners. Check out the first episode here […]
Litmus Music, a catalog rights company backed by private-equity giant Carlyle Group LP, said on Monday (Sept. 18) it acquired the rights to Katy Perry’s five studio albums released for Capitol Records, including her Grammy-nominated Teenage Dream.
According to sources, Litmus paid $225 million for Perry’s stake in the master recording royalties and music publishing rights to her five albums released between 2008 and 2020—One of the Boys, Teenage Dream, PRISM, Witness and Smile. Litmus declined to comment on the deal terms.
Perry’s catalog sale, finalized earlier this year, follows other 2023 music rights deals like Justin Bieber’s $200-million sale to Hipgnosis Songs Capital, demonstrating that household name artists can still command top dollar even as high interest rates moderate investors’ appetites for song rights.
From her breakout single “I Kissed A Girl” in July 2008 to the five chart-topping songs from 2010’s Teenage Dream, Perry has notched a total of nine No. 1s on the Billboard Hot 100. During a musical era that saw major hits from other female pop stars like Lady Gaga, Beyoncé, Rihanna, Taylor Swift, and Adele, Perry remains the first woman and only second artist ever (after Michael Jackson) to send five songs from the same album to the summit of the Hot 100. Those songs are “California Gurls,” “Firework,” “E.T.,” “Last Friday Night (T.G.I.F.)” and “Teenage Dream.”
In addition to releasing 2017’s Witness and 2020’s Smile, Perry is winding down a blockbuster Las Vegas residency that she started in late 2021.
The “Roar” singer’s professional relationship with Dan McCarroll, Litmus co-founder and chief creative officer, dates back to 2010 when McCarroll was president of Capitol Records, the company said.
“Katy Perry is a creative visionary who has made a major impact across music, TV, film, and philanthropy,” McCarroll said. “I’m so honored to be partnering with her again and to help Litmus manage her incredible repertoire.”
Launched in August 2022 with a $500-million-investment from Carlyle’s Global Credit Platform, Litmus has acquired publishing and recording rights of artists from a range of genres, including Keith Urban‘s master recordings and a package of publishing and performance copyrights from super producer benny blanco.
Hank Forsyth, Litmus co-founder and chief executive officer, called Perry’s “essential” songs “part of the global cultural fabric.”
“We are so grateful to be working together again with such a trusted partner,” said Forsyth, an industry veteran previously of Warner Chappell and Blue Note.
“We believe this is a testament to the team’s ability to partner with the world’s top artists. Katy’s iconic songs have not only achieved outstanding commercial success but have significantly influenced popular culture,” said Matt Settle, managing director at Carlyle.
Jann Wenner, founder of Rolling Stone and a co-founder and former chairman of the Rock & Roll Hall of Fame Foundation in New York, is no longer serving on the foundation’s Board of Directors, the Rock & Roll Hall of Fame Foundation confirms to Billboard.
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“Jann Wenner has been removed from the Board of Directors of the Rock & Roll Hall of Fame Foundation,” the foundation says in statement released on Saturday (Sept. 16).
Billboard reached out to John Sykes, current chairman of the foundation, and president and CEO Joel Peresman for further comment.
The move comes directly following an interview published by the New York Times Friday, in which Wenner, 77, addressed criticism of the scope of coverage in his new book The Masters, published through Little, Brown and Company.
In The Masters Wenner looks back at a collection of his interviews conducted in his years at Rolling Stone — all with white men, including Bono, Bob Dylan, Jerry Garcia, Mick Jagger, John Lennon, Bruce Springsteen and Pete Townshend.
The book noticeably does not feature any interviews with people of color or female musicians. Wenner notes in his introduction that neither are in his “zeitgeist.”
“When I was referring to the zeitgeist, I was referring to Black performers, not to the female performers, OK? Just to get that accurate,” Wenner told the NYT‘s David Marchese. “The selection was not a deliberate selection. It was kind of intuitive over the years; it just fell together that way. The people had to meet a couple criteria, but it was just kind of my personal interest and love of them. Insofar as the women, just none of them were as articulate enough on this intellectual level.”
Wenner clarified: “It’s not that they’re not creative geniuses. It’s not that they’re inarticulate, although, go have a deep conversation with Grace Slick or Janis Joplin. Please, be my guest. You know, Joni was not a philosopher of rock ’n’ roll. She didn’t, in my mind, meet that test. Not by her work, not by other interviews she did. The people I interviewed were the kind of philosophers of rock … Of Black artists — you know, Stevie Wonder, genius, right? I suppose when you use a word as broad as ‘masters,’ the fault is using that word. Maybe Marvin Gaye, or Curtis Mayfield? I mean, they just didn’t articulate at that level.”
He added that his selection was “intuitive” and noted, “You know, just for public relations sake, maybe I should have gone and found one Black and one woman artist to include here that didn’t measure up to that same historical standard, just to avert this kind of criticism. Which, I get it. I had a chance to do that. Maybe I’m old-fashioned and I don’t give a [expletive] or whatever. I wish in retrospect I could have interviewed Marvin Gaye. Maybe he’d have been the guy. Maybe Otis Redding, had he lived, would have been the guy.”
Wenner, who was inducted into the Rock & Roll Hall of Fame as a non-performer in 2004, was one of the founders of the Rock & Roll Hall of Fame Foundation in 1983. The founding group intended to celebrate rock ‘n’ roll and honor its icons; the foundation began inducting musicians in 1986. Wenner served as chairman from 2006 through 2020, with Sykes filling the role upon Wenner’s retirement.
He left Rolling Stone in 2019 when the publication was acquired by Penske Media Corporation, which is also Billboard‘s parent company.
Will Hipgnosis Songs Fund, a trailblazer in making music an alternative asset class in the financial world, fight to see another day? The sale of catalogs for $465 million, announced Thursday, is meant to help Hipgnosis Song Fund’s sagging share price and bring it closer to the company’s per-share net asset value (NAV). But it also intends to give investors a reason to vote for a five-year continuation in the annual meeting that’s likely to be held in October.
Given its need to shore up investor support, the catalog sale didn’t come as a surprise. Board chair Andrew Sutch said at a July 13 investor presentation that the board was pursuing options to boost shareholder value, and Hipgnosis has said that many of its largest shareholders favor share buybacks and partial debt repayment to help the struggling share price. This transaction provides the capital for those measures: Hipgnosis intends to use $180 million for share buybacks and $250 million to pay down the revolving credit facility.
Whether the deal ultimately succeeds depends on investors’ belief they are getting a good deal on the sale — the majority of which is to a sister company, the Blackstone-backed Hipgnosis Songs Capital (a joint venture with the royalty fund’s investment advisory, Hipgnosis Song Management, led by Merck Mecuriadis). Hipgnosis Songs Fund has long traded at a steep discount to its per-share NAV. That could partly be explained by higher interest rates that make the royalty fund, launched when interest rates were lower, a relatively less attractive investment to safer bonds. A larger factor could be investors’ lack of faith in NAV. Hipgnosis, which has argued the share price does not accurately reflect the value of its catalog, is now giving the market a transaction to help prove its point.
In the days following the announcement, some analysts have shown concern about the deal’s terms, transparency and related-party buyer. Investec analysts criticized the deal for valuing the assets “as being little more than the IPO price” in an investor note on Friday (Sept. 15) and stated, “there is substantial value leakage to related parties that again sadly raises significant corporate governance concerns.”
Numis predicts that Hipgnosis investors’ views will be “mixed, particularly given the Round Hill offer,” analysts wrote in a Sept. 14 investor note. In that deal, announced Sept. 8, Round Hill Music Royalty Fund — a royalty fund listed on the London Stock Exchange like Hipgnosis Songs Fund — received a buyout offer from U.S. music company Concord. Unlike the Hipgnsosis deal, Concord bid for the entire publicly traded company — at a price 11.5% below Round Hill’s net asset value. It’s a more straightforward transaction than Hipgnosis’ proposed partial catalog sale.
Numis believes that Hipgnosis’ share price’s discount to NAV “may persist for some time,” which could mean the board and the investment advisor, Hipgnosis Songs Management, “will continue to come under pressure.”
Analysts at Stifel, who have long been critical of Hipgnosis and Round Hill’s music royalty funds’ valuation methodologies, focused on the value Hipgnosis Songs Fund was extracting from Hipgnosis Songs Capital. The $465 million transaction consists of two parts. The first disposal worth $440 million, which accounts for 95% of the purchase price, is 17.5% below the fair value and 26% above the catalogs’ acquisition price.
Little is known about the smaller, second disposal that amounts to a $25 million slice of a catalog acquired from Kobalt Music in 2020 for $323 million. Hipgnosis Songs Capital is not the buyer of the second disposal.
Adding to the deal’s complexity, Hipgnosis Songs Fund is on the hook for bonuses and other payments under the original acquisition agreements; the company believes that will amount to $5.5 million, and it will be capped at $30 million. In addition, Hipgnosis Songs Capital is due royalties on the acquired catalog earned going back to Jan. 1 — about $15.3 million through Sept. 14.
“The complex nature of the deal suggests that it is hard to say the NAV has been validated,” wrote Stifel analyst Sachin Saggar.
If the share price is any gauge of investors’ initial reaction to the deal, opinions aren’t good. Shares of Hipgnosis Songs Fund dropped 6.5% on Thursday and another 7% on Friday. The 13% two-day decline eliminated nearly all of the 15.7% bump the share price received on Sept. 8 following news of Concord’s bid for Round Hill.
If investors are considering what Hipgnosis Songs Fund has left after the sale, they will find many jewels remaining in its catalog, including Neal Schon of Journey, Christine McVie and Lindsey Buckingham of Fleetwood Mac, Red Hot Chili Peppers, Tom DeLonge of Blink-182, Neil Young, Blondie, Steve Winwood, Rodney Jerkins, Chrissie Hyde of the Pretenders, RZA, Teddy Geiger and The Chainsmokers. Five of those names — Journey, Red Hot Chili Peppers, Blink-182, Fleetwood Mac and The Chainsmokers — rank in the year-to-date top 500 recording artists ranked by global on-demand audio streams, according to Luminate. Two of them, Red Hot Chili Peppers and Fleetwood Mac, are in the top 100. It’s also keeping Walter Afanasieff, co-writer of Mariah Carey’s “All I Want for Christmas Is You,” which is a No. 1 song in the United States, United Kingdom and Canada every November and December.
Hipgnosis is giving up some quality, though: The 29 catalogs in the first portfolio include 21 of 473 songs in Spotify’s Billions Club, five of Rolling Stone’s 500 Greatest Songs, and five of YouTube’s 30 most-viewed music videos. They include some older music by Barry Manilow and Rick James as well as newer artists like Poo Bear, RedOne, Martin Bresso and Colombian star Shakira, who ranks No. 55 in global audio on-demand streams. But, on average, these are younger songs with less proven royalty histories than the average song in Hipgnosis Songs Fund’s portfolio. In general, younger songs are less valuable than older, more established songs. Shareholders will vote on the sale at the annual general meeting.
The second disposal represents “non-core” assets worth $25 million that represent a small portion of the 33,000 songs acquired from Kobalt Music for $323 million in 2020. That deal also included the 18,000-song publishing catalog of Canadian music company Nettwerk. Hipgnosis Songs Fund said at the time it paid Kobalt an 18.3 times net publisher share multiple for the catalogs.
Hipgnosis believes the two disposals achieve multiple aims. The $465 million price tag is “the smallest possible that would provide the required capital” for share buybacks and debt repayment, the company stated in a press release. Also, the catalogs the company chose to sell leave intact “the fundamental investment case for Hipgnosis Songs Fund….by protecting the strength of the remaining portfolio.” Come October, we’ll see what investors are thinking.
Peggy Gou has expanded her WME representation and is now globally represented by the agency. Based in Berlin, Gou’s 2023 tour schedule has included EDC Mexico, Sónar Barcelona, KappaFuturFestival, Lollapalooza Stockholm, Electric Castle, Creamfields North and ARC Music Festival. Upcoming plays include Australia’s Beyond The Valley and Wildlands festivals. She’s also played events including Primavera, […]
23 PR (or Twnty Three) expands its presence in the United States with the appointment of James Rainis as head of U.S. public relations, Billboard can exclusively reveal.
The independent comms and artist management firm recruits Rainis from Shore Fire Media, where he worked on campaigns for the likes of Bruce Springsteen, Bon Iver, Ghostface Killah, Oneohtrix Point Never, and PJ Morton, over a nine-year stint.
Founded in 2014 by Melody Forghani, 23 PR is based in Sydney, Australia and represents a diverse roster of talent, including RAYE, Little Simz, Obongjayar, KAYTRAMINÉ, Caroline Polachek, Skepta, and Joji.
In 2019, Amanda Perlstein, formerly of Stones Throw, Partisan, Shore Fire, and Big Hassle, launched 23 PR U.S. With Perlstein at the helm, the American arm secured relationships with Logic1000, CLIP, Baird, Luna Li, Haviah Mighty, and others, and works in tandem with HQ to offer tailored U.S.-only, Australia-only, and, when required, joint campaigns.
“Melody and Amanda have built a formidable press operation both in Australia and the U.S. while always honoring the vision and goals of the musicians they represent,” comments Rainis in a statement. “I’m thrilled to join the team and to expand 23’s U.S. operations, all while working with a diverse roster of artists on the bleeding edge of music today.”
Adds Perlstein: “Melody and I are thrilled to welcome James to our U.S. team. We can’t wait to see where he takes the company next with his keen eye for spotting talent early, extensive knowledge of music, and a commitment to developing an inclusive company culture.”
Since the U.S. division opened for business, the indie firm has brought acts like Kucka, Maple Glider, altopalo, Sunset Rollercoaster, MAY-A to the “global stage,” reps say.
A statement from the company reads, “Our love of music is at the center of every campaign through the promotion and protection of artists and their stories.”
The board of directors of Hipgnosis Songs Fund said on Thursday that the music royalty fund founded by Merck Mercuriadis plans to sell two portions of its song catalog in a bid to increase its stock price and pay down debt.
The proposed sales include one package of assets that consists of 29 catalogs worth roughy $440 million, which the Blackstone-backed entity, Hipgnosis Songs Capital, has agreed to acquire. The second package of assets, worth $25 million, includes songs Hipgnosis Songs Fund acquired in 2020 from Kobalt, and is being shopped to external buyers.
The board introduced the proposed sales, which have a combined value of $465 million, alongside a proposal to buy back up to $180 million of its own stock, to pay down $250 million of its revolving debt and to introduce new, lower advisory fees to be paid to Hipgnosis Song Management Limited. The board says it believes the package of proposals, which must be approved by shareholders, will serve as a “catalyst for a re-rating of the company’s share price … (which) over the last 18 months … has not reflected the fundamental value of the company.”
This follows news last week of Concord’s $469 million bid for rival Round Hill Music Royalty Fund, a move that gave Round Hill and Hipgnosis’ stock prices a much-needed boost. Round Hill’s stock price spiked 65% after the acquisition announcement to $1.13.
“Given the substantial share price discount to fundamental value in recent months, share buy backs enable (Hipgnosis Songs Fund Ltd) to invest further into the remaining portfolio at a material discount to its fundamental asset value,” according to the statement. “These disposals are of the smallest magnitude possible that would provide the required capital to execute on this strategy, whilst ensuring that the ongoing investment case for Hipgnosis Songs Fund remains intact by protecting the strength of the remaining portfolio.”
The board says that the proposed sale worth $440 million that would go to Hipgnosis Songs Capital, a fund run by Mercuriadis’ Hipgnosis Song Management and Blackstone, reflects a multiple of 18.3x historical Net Publisher Share and is “designed to protect the strength of the remaining portfolio” because it will leave the London Stock Exchange-listed Hipgnosis Song Fund with a “concentration of culturally important and successful songs.”
Those songs, it says, represent 81% of the existing portfolio by fair value, including ownership in seven of the Fund’s 10 largest catalogs, and are mostly older vintages, such as 47 of Rolling Stone’s 500 Greatest Songs of All Time (down from the Fund’s current ownership stake in 52 of those songs.
The board says the sales price represents a 51% premium, compared to the asset’s valuation based on the company’s 30-day average market capitalization up to Sept. 13, 2023. It also represents a discount of 17.5% to the fair value of the package of assets compared to the valuation disclosed in the company’s most recent annual report, out March 31.
By comparison, Concord’s cash bid of $1.15 per share for Round Hill’s Music Royalty Fund represented a 67% premium to the share price and a 11.5% discount per-share net asset value ascribed to Round Hill by Citron Cooperman, a leading valuation expert.
With regards to the second proposed sale of rounghly $25 million-worth of songs, the board said it had long anticipated it would need to sell some of what it acquired from Kobalt’s Fund One.
“They were considered non-core as the company does not have perpetual ownership rights or the songs require ongoing accounting and reporting obligations that take up significant bandwidth which can be better focused on active song management,” the board said in the statement.
Billboard reported that a package of non-core assets was being shopped in July.
Hipgnosis Songs Fund will hold meetings for shareholders to vote on the proposals as well as the company’s first continuation vote on or before Oct. 25, according to the statement. If approved, the $440 million asset sale to the Blackstone-backed Hipgnosis fund will result in the the publicly listed Hipgnosis fund paying $6.7 million in corporation tax.
Bob Boilen is leaving NPR.
On Wednesday (Sept. 13), Boilen announced his departure from the media organization after a 35-year tenure. Boilen is the co-creator of NPR’s Tiny Desk Concerts, the creator and host of All Songs Considered and has directed All Things Considered for the last 18 years.
On social media, Boilen wrote, “After 35 years, I am leaving NPR. I’ve had the thrill of creating Tiny Desk Concerts, All Songs Considered, directing All Things Considered for 18 years and so much more. I love the people I’ve worked with, but it’s time to find new challenges. thank you for listening/watching.”
Boilen’s last day on the job is Oct. 2.
An internal memo obtained by Billboard also announced Boilen’s departure to staff.
“For over 35 years Bob has been a fixture here, whether as a long-time producer and director on All Things Considered or as a digital pioneer with NPR Music, Bob’s impact has achieved what few can; he has, through his work, changed NPR and changed the world around us,” reads the memo, written by NPR vp of visuals & music strategy Keith Jenkins and outgoing senior vp of programming and audience development Anya Grundmann.
In the memo, Jenkins and Grundmann add that the Tiny Desk series, which Boilen co-created in 2008, “has set the music industry agenda for the last 15 years” and succeeded in “bringing new audiences to NPR.”
The memo includes a note from Boilen, who states, “I leave at a time when new creative folks will hopefully envision exciting new futures for NPR Music.”
In addition to his work at NPR, Boilen is an accomplished musician and writer. His debut book, Your Song Changed My Life, was published in 2016.
The news of Boilen’s exit follows two other high-level departures at the public radio broadcaster as of late. In August, Grundmann — who worked with Boilen on Tiny Desk in her role overseeing music, podcasts, entertainment and talk shows at the broadcaster — also announced that she’s leaving the public radio giant at the end of the year following nearly 30 years at the organization.
That was followed earlier this month by an announcement from NPR president/CEO John Lansing that he’ll retire at the end of the year following a four-year tenure. Lansing’s time at NPR 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.
Read the full staff memo on Boilen’s departure below.
All;Today, we’re sharing the news that one of our longest tenured colleagues, Bob Boilen, is retiring from NPR. For over 35 years Bob has been a fixture here, whether as a long-time producer and director on All Things Considered or as a digital pioneer with NPR Music. Bob’s impact has achieved what few can; he has, through his work, changed NPR and changed the world around us.Bob’s work on the broadcast side of NPR was extensive, and he later was instrumental in pushing NPR into the digital world at a critical moment of change in media. All Songs Considered, which began as a multimedia online show in 2000 and became one of NPR’s first podcasts in 2005, was a foundational element of NPR Music which Bob helped create in 2007. Bob has continued to produce the podcast weekly, and it’s also heard on more than a hundred NPR Member stations.While web video was still in its infancy, Bob created Project Song which placed a musician in a Big Brother type environment at NPR for 24 hours, allowing us to observe the song writing process, unfiltered. While its run was short, its impact was great; Project Song’s influence can be found in podcasts like Song Exploder. Project Song also has the honor of earning NPR its first Emmy in 2012.Finally, there is little left to say that hasn’t already been shared about the Tiny Desk series, which Bob co-founded in 2008. The series has set the music industry agenda for the last 15 years, and it continues to break new ground with its concerts and the Tiny Desk Contest; bringing new audiences to NPR. It is very difficult indeed to go anywhere in the world — whether it’s a battlefield in Ukraine, an embassy in Washington, a farm in the Midwest or a restaurant in Asia — where people haven’t heard about and watched Tiny Desk Concerts. This is the very definition of a global phenomenon.Bob is leaving NPR with a legacy of creativity and innovation. Knowing of his love for photography and the Eastern Shore, we hope his days continue to be filled with beautiful birds and sunsets — that is, when he can tear himself away from continuing to discover new music in clubs across America. We wish you all the best.Keith and AnyaA few words from Bob:I’m retiring from NPR after 35 incredible years. It’s time to find new challenges in life, and I’m excited about some of the possibilities. I leave at a time when new creative folks will hopefully envision exciting new futures for NPR Music. My last day is October 2.I lived the dream when I came to NPR’s All Things Considered without a day of journalism or radio in my background. I was a musician and a video producer in 1988, but the folks at NPR saw something in me and gave me opportunities to take chances and grow. Within a year, I was directing All Things Considered. I did that for 18 years. I produced hundreds of music stories, brought in music writers, and edited and produced their reviews.In 1999, I imagined a music show for the internet, and in 2000 All Songs Considered was born. Back then, it was a multimedia show with music. In the summer of 2005 All Songs Considered became what I believe was the first original content podcast for NPR.With the launch of NPR music in 2007, NPR covered music festivals, including Newport Folk, and, of course, SXSW, where Stephen Thompson’s comment to Laura Gibson became the spark that started the Tiny Desk series. The staff includes such great talent and now the videos look and sound better than ever.All the while, I got to be in an office with some truly amazing, talented, and fun people. Most of all I just want to thank all of you for making magic happen.
Concord’s $469 million bid for Round Hill Music Royalty Fund, announced on Friday, did more than give Round Hill’s shareholders a tidy premium over the previous day’s closing price. The offer, which must be approved by 75% of Round Hill shareholders at the company’s Oct. 18 general meeting, also provides a vote of confidence in music asset valuations and the ability of the marketplace to seek out value.
Andy Moats, director of music, sports and entertainment at Pinnacle Financial Partners, says Concord’s offer is “a win-win for all parties.” Round Hill, which had been trading at a steep discount to its catalog’s value, was offered a premium over the share price prior to the announcement. Concord gets to pay fair-market value for a catalog of 150,000 songs by the likes of Bruno Mars, The Supremes and Louis Armstrong.
The deal comes as Round Hill’s share price struggled to meet expectations and falls short of it the value ascribed by multiple independent experts. Concord bid $1.15 per share, 11.5% below the per-share net asset value (NAV) ascribed to Round Hill by Citron Cooperman, a leading valuation expert. Round Hill’s shares had been trading at a 47% discount to NAV the prior day and had fallen 11.5% year to date.
But the fact that Concord’s bid is slightly below Round Hill’s NAV shouldn’t be viewed as a negative, says Larry Miller, clinical professor and director of music business program at New York University. “When you see a liquidity event like this at even close to NAV, I think that is a sign of a strong business fundamentals, notwithstanding how some class of investors — in particular investors in alternative assets — might view the value of the catalog to NAV.”
Moats agrees that Concord’s bid should be seen as a positive despite falling short of Round Hill’s recent NAV. “It was consistent with what we’ve seen in the past” in terms of where deals transact, he says. Not all deals close precisely on valuations, Moats says. Some prices are above valuations and some fall below. The Round Hill price is “within range of what I’ve seen over the last five years where something trades relative to its valuation,” he says.
Other people see additional positives in Concord’s bid for Round Hill’s music royalty fund — which still leaves Round Hill with a substantial publishing and recorded music business. To some, the acquisition reflects a functioning market in which Round Hill’s music assets are moving to Concord’s more efficient cost structure.
Roy Salter, senior managing partner at Virtu Global Advisors, says the deal shows the market is working as intended. “Among the major messages symbolized by the Concord transaction is the continuing advancement of music royalty capital market efficiencies, wherein an increasing number of pension and profit-sharing funds, insurance companies, sovereign funds and similar capital market constituents are steadily entering the market in search of predictable, non-correlated investment returns, and business operations which support music royalty administration continue to be enhanced such as enables optimal market-efficiencies,” he says.
For others, Concord’s bid is an important vote of confidence for firms’ NAV models. “The key takeaway from this Round Hill deal is that it affirms the valuation methodologies that have been used for large music portfolios,” says Michael Poster, an attorney with Michelman & Robinson. “For all the negativity that has come out of a handful of analysts around some of these valuation methodologies, at the end of the day, the market tells the story.”
NAV, a measure of an investment fund’s assets minus debts and liabilities, has been a sticking point for Round Hill and the other publicly traded music royalty fund, Hipgnosis Songs Fund, in recent years. Citron Cooperman, FTI Consulting and other valuation experts employ valuation models that calculate music catalogs’ values by estimating their cash flows over a lengthy period of time. A company’s NAV can improve if the valuation expert believes the catalog merits a lower discount rate, for example, or because favorable industry trends suggest previous revenue forecasts are too conservative.
Some equity analysts have raised questions about not just the valuations but the music industry’s tendency to constantly update NAV. Most funds in other sectors hold their new acquired assets at cost “until there are verifiable reasons” — such as a market transaction — “to suggest a change is warranted,” Stiefel analysts wrote in a Jan. 7, 2021, note to Hipgnosis investors.
Over the last roughly two years, a gap between independent valuation expert’s NAV and Round Hill’s trading price had widened dramatically. The discount to NAV stood at 5% on Dec. 31, 2021, when Round Hill’s NAV was $1.12 per share, and peaked at 51.6% on April 3, 2023, when Round Hill fell to $0.615 per share.
To give the market more faith in its NAV, Round Hill commissioned a second valuation report, by FTI Consulting, that put its NAV within 3% of Citron Cooperman’s estimate. This additional valuation supported Round Hill’s view that its portfolio was being “significantly undervalued” by investors, Round Hill CEO Josh Gruss said at the time.
The move appears to have helped some: Round Hill’s share price rose 19.7% over the following month (Hipgnosis shares, not part of Round Hill’s efforts to change investors’ impressions, fell 4% over that period). But whether investors remained concerned with NAV methodologies or motivated by rising interest rates and other macroeconomic factors, Round Hill’s share price remained well below NAV until last week.
Concord’s bid also provided a boost to Hipgnosis Songs Fund shares that have also been trading at a deep discount to NAV. The day before Concord’s bid was announced, Hipgnsosis shares closed at 0.798 pounds ($1.00), a 58.3% discount to the company’s NAV on March 31 of $1.92. Whether investors regained faith in the NAV or expect Hipgnosis to negotiate a similar asset sale, its shares jumped 15.7% to 0.923 pounds ($1.15) the day of the announcement, peaked at 0.962 pounds ($1.20) on Tuesday and closed at 0.93 pounds ($1.16) on Wednesday.
Had Concord’s bid come in significantly less than NAV, there could have been ripple effects that touched everybody from banks to investors. In such a scenario, people would re-think the value of catalogs and their interest in investing in music assets.
But that didn’t happen. Concord and Round Hill, both widely considered to be smart players in the music asset market, agreed to a price tag close to the often-criticized NAV. If the market was looking for a signal about how to value Round Hill, it received a credible confirmation.
“There’s a lot of stability and consistency in this space,” says Moats, “and this transaction provides that.”