Executive Turntable
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Four months after stepping down as chairman/CEO of Warner Music Nashville (WMN) and assuming the role of chairman emeritus, John “Espo” Esposito is resigning the emeritus title effective immediately.
In an email to the WMN staff Wednesday (April 19), Esposito wrote, “It’s that time of year when I head off to Nantucket to relax and reflect. This summer though, I will be reflecting on my next adventures, as I am stepping down as the Chairman Emeritus of Warner Music Nashville today. I’m so proud of what you’re all achieving as a team. I will always be the biggest champion of this team and the artists we signed and developed together. Keep rocking! See you in the fall.”
Esposito gave no reason for the move. However, when reached by Billboard, he said the change would give him more time to work with the T.J. Martell Foundation for Cancer Research as well as “travels and a chance to see the forest for the trees by taking some time.” In March, Esposito was named the chairman of the board of trustees of Nashville-based T.J. Martell, which is rebounding after an embezzlement scandal. “We got the double whammy of the COVID pandemic and somebody being a bad actor,” said Esposito of T.J. Martell in March. “I felt qualified with my knowledge of the organization and passion for them to do what I could to help get us back on track.”
Last June, when Esposito’s retirement as WMN CEO/chairman was announced, longtime WMN executives Cris Lacy and Ben Kline were elevated to co-presidents in preparation for Esposito transitioning to chairman emeritus status at the start of 2023. In early January, Lacy and Kline were promoted to co-chair/co-presidents.
Under Esposito, who had been at WMN’s helm since 2009 after coming over from WEA Corp. as president/CEO, the division’s market share quadrupled, according to parent company Warner Music Group. The label also said its artists have earned more than 300 gold and platinum RIAA certifications.
When Esposito’s shift to emeritus was announced, Warner Recorded Music CEO Max Lousada said in a statement: “Under Espo’s brilliant guidance over the past 13 years, our Nashville team has built superstar careers, attracted original new voices, innovated in the digital world, and championed the creative community.”
Universal Music Group Nashville (UMGN) has promoted Lori Christian and Rob Femia to executive vp of marketing and executive vp of business & legal affairs, respectively. The label group includes Capitol Records Nashville, EMI Records Nashville and MCA Nashville.
In her new role, Christian will oversee UMGN’s artist development, brands and sponsorship, as well as creative services, international marketing and media marketing departments for the label group’s artist roster. Christian was elevated from senior vp of marketing, a role she was tapped for in 2020 after leading the publicity department at UMGN following the 2012 merger of EMI and UMG.
Femia has more than 15 years of experience practicing entertainment law and joined UMGN in 2013 as head of business and legal affairs; he was promoted to senior vp in 2018. He will now lead the company’s business affairs department.
“Lori’s understanding of storytelling and weaving our artists’ narratives into framing their stories has been a critical element of UMGN’s success,” said UMGN chair/CEO Cindy Mabe in a statement. “Artist development is such a defining feature that separates our artists, especially in a world where everyone is looking for immediate gratification. Having Lori in this leadership role to help drive the key tenants of artist development across all of UMGN is going to change our artist growth strategy. I am so excited to see how Lori leads and guides a new era in artist marketing across UMGN.”
Mabe added of Femia, “It’s an honor to expand Rob’s leadership abilities beyond his vast business and legal knowledge. Rob has had a front seat in dealmaking for a while but as we expand the new goals of UMGN, Rob is helping to write and build the next era of the country music business. With the industry changing so rapidly, Rob is an essential partner to our future as Universal Music Group Nashville and his alignment and guidance of our staff and artists is critical to our success. It’s an honor to watch Rob shine and lead our company and I am thrilled to have him join our executive team.”
The promotions are part of an ongoing restructuring at the company following Mabe’s official ascent to the UMGN chairman/CEO role on April 1 following former chairman/CEO Mike Dungan‘s retirement. Earlier this month, senior A&R executives Stephanie Wright and Brian Wright, along with senior promotion executive Royce Risser, exited the company. Meanwhile, UMGN recently added to its artist roster, welcoming Brad Paisley into the fold.
Additionally, former UMGN executives Katie Dean and Rachel Fontenot recently teamed up to form a new label, Leo33.
Esteban Geller, who for nearly five years has led the marketing division at Sony Music U.S. Latin, has been promoted to the new position of general manager, Billboard has learned.
The Argentina-born Geller, based in Miami, will continue to report to Sony Music U.S. Latin president Alex Gallardo.
Geller was most recently senior vice president for artist relations & marketing for the label, working closely with superstar artists like Shakira, Maluma, Camilo, Rauw Alejandro, Wisin & Yandel, Manuel Turizo, Farruko and their teams. In his new role, he adds Puerto Rico and West Coast Operations to his purview, as well as radio/promotions and video commissioning.
“Esteban is one of the most dynamic, savvy, energetic, and enthusiastic executives in the business. He has played a key role in our expansion and the sustained success of countless acts,” said Gallardo in a statement. “He’s a true team player who doesn’t just envision big ideas; he actively executes them at the highest level.”
Highly-regarded among artists and management teams, Geller has gained a reputation as a tireless, proactive and solution-driven executive. His expertise comes from different fields. Prior to joining Sony Music in 2018, he worked with superstars Ricardo Arjona and Diego Torres (a Sony artists) and held jobs at event promoter Fenix Entertainment Group Latin America as well as MTV/Vh1 Latin America.
“It has been amazing to be part of Sony’s growth in the industry and I’m proud of what we have achieved over the past few years,” said Geller in a statement. “Every project is so important to us, and we approach each artist with the same care and diligence. Much appreciation to Alex and Afo [Verde, Sony’s CEO/President for Latin Iberia) who have entrusted me to not only develop music releases, but most important, artists careers.”
Position Music has sold a significant minority equity stake in itself to Vesper Company, a private investment firm founded in 2021 by executives formerly involved with a company that invested in Kobalt Music. In addition, Position Music has a new revolver credit facility from Pinnacle Bank. Terms were not disclosed for either deal.
Founded in 1999 by CEO Tyler Bacon, Position Music has a 40-person staff and occupies a 15,000-square-foot facility with office space and two recording studios, with four more studios currently being built. The company, which started as a synch music house, now consists of music publishing, a record label and a small artist management operation.
“I am excited to be partnering with the Vesper team as we enter this next phase of growth,” Bacon said in a statement. “With Vesper’s investment and strategic experience paired with our new credit facility from Pinnacle Bank, we are well-positioned to substantially build on the foundation we have built for 24 years.”
According to the company, Position Music’s publishing roster includes RIAA platinum-certified songs including Em Beihold’s “Numb Little Bug,” grandson’s “Blood // Water” (double platinum) and Judah & the Lion’s “Take It All Back,” along with gold-certified songs including Rotimi‘s “In My Bed” and Sueco’s “Paralyzed.” Its roster includes songwriters and/or artists such as Kid Bloom, Welshly Arms, Fantastic Negrito, Layto, Ryan Oakes, Blackway, 2WEI, TeaMarr and Judah & The Lion.
Position Music says the songwriters and producers it represents have written or produced songs for such artists as Avril Lavigne, Dua Lipa, Blink-182, Travis Barker, iann dior, Pop Smoke, Machine Gun Kelly and Avicii. Moreover, the company says it has recently completed joint ventures with Big Noise Music and Champagne Therapy Music Group. Position Music provides its own administration in the United States, while Kobalt serves as its international administrator.
Vesper was founded in 2021 by David Caro, Shamit Grover and Raj Gopal, formerly with MSD Partners. They were involved in that firm’s purchase of a minority stake in Kobalt Music Group, first made in 2014.
“For over twenty years, Tyler and his team have shown a strong commitment to serving artists and songwriters and helping them reach the next level of their careers,” added Gopal in a statement. “We’re excited to support the continued growth and evolution of Position Music.”
According to SEC filings, Vesper has raised at least $36.5 million in selling securities since its founding, although that appears to be related to another Vesper investment: its acquisition of New England Marine Monitoring. That investment, like its stake in Position Music, is apparently part of its investment strategy of partnering with companies that the firm can help scale through providing “strategically aligned capital and active support,” according to its website.
“Few independent music companies today can match Position Music’s scale, track record, and depth of synch and creative services,” Vesper’s Caro said in a statement. After his involvement with MSD Partners — but before the formation of Vesper — Caro served as head of corporate development at Kobalt, according to his LinkedIn profile.
With its new investment partners, Bacon tells Billboard that Position Music will organically expand by signing another 15 artists to its label roster in the near future and another 20 or so songwriters and/or producers in the next few years. Moreover, it will continue to selectively acquire current music assets, mainly in the pop and hip-hop genres; it recently completed two such buys in deals that included going-forward songwriting contracts. Bacon says the company is also open to doing more joint ventures.
As for investing in legacy music — a preferred asset class for most institutional investors — Bacon says the company’s financing is currently not set up to accommodate that type of investment strategy, though he doesn’t rule out making such investments somewhere down the line.
Position Music was represented by Shot Tower Capital and Reed Smith. Vesper Company was represented by Drummond Woodsum and Greenberg Traurig.
In other Position Music news, Bacon announced that vp/head of A&R Mark Chipello, vp/head of synch Emily Weber and vp of A&R and gaming Jake Versiuis have been made partners at the company.
Tyler Bacon (second from left) with his newly announced partners at Position Music: Jake Versluis, Emily Weber and Mark Chipello. / Mallory Turner
Lloyd Starr has been appointed COO at Discogs, the recorded music database, marketplace and community, effective May 1. He joins the company from vinyl subscription service Vinyl Me, Please; prior to that, he served as president/COO at digital electronic music marketplace Beatport.
In his new role, Starr will oversee Discogs’ day-to-day operations, with a focus on driving growth and innovation. He will work closely with CEO Kevin Lewandowski and the rest of the executive team to develop and implement Discogs’ strategic direction.
“We’re thrilled to welcome Lloyd Starr to the Discogs team as our new COO,” said Lewandowski. “Lloyd’s extensive experience in the music industry and his track record of success in building and scaling companies make him an ideal addition to our leadership team. We’re confident that his expertise will help us continue to grow and innovate as we serve our community of music fans, record collectors, and sellers around the world.”
Starr added, “I’ve long admired the Discogs mission and its passionate community. I am thrilled to join such a talented and creative team to help realize our vision and continue to add value for vinyl and music lovers worldwide.”
Jon Kurland was named executive vp of business affairs and chief entertainment counsel at iHeartMedia. In his new role, Kurland will lead the company’s business affairs team and focus on deals and relationships with iHeart’s podcast, music, entertainment and new media partners. He will additionally oversee the company’s entertainment legal functions across podcasts, live events and new media initiatives as well as its music licensing strategy. Based in New York City, he will report to executive vp and general counsel Jordan Fasbender. Kurland joins iHeartMedia from Amazon, where he was senior corporate counsel in the global media and entertainment group.
Jen Ashworth was promoted to senior vp of commercial marketing & streaming at Capitol Music Group (CMG), up from her previous role as vp of global commercial marketing. In her new role, Ashworth will oversee the company’s streaming strategies across its portfolio of labels, with a focus on editorial and partner activations with Spotify, Apple Music, Amazon, YouTube and Pandora. She will continue managing CMG’s relationship with Spotify as the company’s account lead. Based in Hollywood, she reports to CMG executive vp of global commercial marketing strategy Mike Sherwood.
Manager Jared Rosenberg joined Red Light Management, bringing clients Aly & AJ and Disney star Kylie Cantrall to the firm. Rosenberg has been in management for over 20 years, working with artists including Backstreet Boys, Janet Jackson and Thirty Seconds to Mars.
Mateo Dorado joined Atlantic Records as senior director of A&R. The New York-based executive will work closely with emerging artists including Luh Tyler and Alicia Creti while reporting to Atlantic co-president of Black music Lanre Gaba. He arrives at Atlantic from Alamo Records, where he signed Rod Wave.
Jonathan McHugh joined independent music publishing, rights management and catalog marketing company AMR Songs as senior advisor of creative and synch. McHugh will also sit on the company’s board. Over a decades-long career, the industry veteran has served in roles at New Line Cinema (as vp of soundtrack music), Jive/BMG and Island Def Jam/Def Jam Films; he has produced 40 music-focused films and TV series and music-supervised 85 feature films and TV shows. In addition to his new role at AMR Songs, he will continue working as an independent producer/director and music supervisor while teaching a music industry studies class at Loyola University in New Orleans.
Amanda Tumulty was named vp of global marketing at Cinq Music Group. She joins the company from Universal Music Group, where she spent over five years on the global consumer marketing team, specializing in marketing strategy and operations. At Cinq, she will oversee all marketing strategies for the label/distributor’s roster and the Cinq Music brand. Tumulty can be reached at atumulty@cinqmusic.com.
Nashville-based record label Melody Place restructured and rebranded while elevating Sanborn McGraw to president/general manager and Tony Gottlieb to COO. Under the new leadership, the company will refocus its efforts on artist development, original material and international promotion. The first signing following the restructure is Nashville singer-songwriter Makena Hartlin, who signed a recording and publishing deal with Melody Place and its affiliate, Melody Place Publications. She will release her single, “LA,” on the label April 21. Melody Place is also working on a new project from singer Jackie Evancho. McGraw can be reached at sandy@melodyplace.com and Gottlieb can be reached at tony@melodyplace.com.
Global creative audio network Squeak E. Clean Studios hired music producer Jennie Armon as executive creative producer out of New York. She joins the company following seven years at Brooklyn-based music and sound company Found Objects, where she served as executive producer and music supervisor. Armon can be reached at jennie@squeakeclean.com.
Rich Paul, founder and CEO of Klutch Sports Group and United Talent Agency board member and head of sports, has joined the board of directors at Live Nation. Paul, who is longtime partner of pop superstar Adele, boasts a client list that includes LeBron James, John Wall, Anthony Davis and Draymond Green and “brings a valuable perspective from sports, business, entertainment and more,” said Greg Maffei, chairman of the Live Nation board of directors. “We’re fortunate to welcome him as a new addition to our board.”
Live Nation President and CEO Michael Rapino noted that “Rich understands what it takes to help talent develop a long and successful career. His input will be a great addition as we continue driving more value for artists and their fans through live shows.”
Paul, who has regularly been named one of the most powerful agents in sports by Forbes, ESPN and Sports Illustrated — which crowned him “The King Maker” on a 2019 cover — got his start working with James in 2003. He later joined CAA and went on to launch his sports agency Klutch in 2012. In 2020, he became the first African American to sit on the board of UTA, which made a significant investment in his company Klutch the year prior. Last year, he inked a deal with New Balance for the launch of the Klutch Athletics clothing line.
“Live Nation’s artist-centric approach to business makes this a really natural fit for me,” said Paul in a statment. “Going to an event live is one of the most powerful ways to experience sports and music, and I look forward to contributing to the company and the industry in this new way.”
TJ Landig was promoted to senior vp of marketing at Warner Records. Based in Los Angeles, he reports to executive vp of marketing & artist development Dionnee Harper. Among other duties, Landig manages the labels’ partnership with 88rising. He can be reached at tj.landig@warnerrecords.com.
Pete Nash joined Primary Talent International as a partner, effective immediately. Nash is the eighth partner to join the company since it regained its independence from CAA in March via a management-led buyout. Nash joined ICM in 2020 and worked closely with the Primary Talent team until CAA’s acquisition of ICM in June 2022. Nash brings clients Kings of Leon, Pet Shop Boys, Regina Spektor, Steve Winwood and Travis to the agency.
Roberto Neri joined Believe as CEO of Believe Publishing following the company’s acquisition of Sentric Music Group in March. Along with Sentric founder/CEO Chris Meehan, Neri will “build a service for songwriters and publishers, in a way that is both innovative and complementary with Believe’s core recorded music offering,” according to Neri’s post on LinkedIn announcing his hire. He was most recently CEO at Utopia Music Services, Sentric’s former parent company.
Elsewhere at Believe, the company’s U.K. office announced several promotions. They include Malena Wolfer, upped from head of artist services to director of artist services; Ben Rimmer, elevated from label & artist solutions director, Believe UK to regional director label & artist solutions, Believe UK & Northern Europe; and Panos Polimatidis, promoted from head of artist relations to head of label & artist solutions. Wolfer will focus on high-profile signings and partnerships and explore joint venture opportunities, Rimmer will help grow Believe’s operations in Benelux and Scandinavia, and Polimatidis will be responsible for business development across both the label and artist distribution divisions while also overseeing the client relationship management team. Wolfer and Rimmer will report to Believe UK managing director Alex Kennedy while Polimatidis will report to Rimmer.
Leslie Rosales joined Rostrum Records as head of marketing. In the role, she will develop and lead marketing plans for the independent label — creating marketing opportunities across all digital service providers, securing brand partnerships and partnering with creative teams to develop content that supports artist and label goals. Rosales, who will report to Rostrum Records president Erika Montes, joins Rostrum from High Standardz, where she will continue as a consultant for the label’s emerging artists, including Coco Jones and Lady London. She can be reached at leslie@rostrumrecords.com.
Sofia Ilyas was named chief community officer at The Beatport Group, where she will oversee the company’s diversity, inclusion and social action efforts. She will also lead corporate communications, spearhead the strategy for emerging growth markets and manage Beatport’s partnerships with DJ and product community organizations globally. She most recently served as a director at headphone company Nura. Ilyas will be based out of Beatport’s London office and can be reached at sofia.ilyas@beatport.com.
Mark Collen has departed his role as executive vp of international operations at Sony Music to launch a new consultancy firm called Night Manager Entertainment. The new firm will offer strategic leadership and international marketing consulting to clients across the music industry. Collen can be reached at mark@nightmanager-entertainment.com.
The Country Music Association (CMA) promoted four employees: Tiffany Kerns to senior vp of industry relations & philanthropy, Catharine McNelly to vp of communications, Ben Balch to senior director of accounting & financial planning, and Michael Farris to senior director of business strategy & insights. Among other duties, Kerns will continue overseeing the direction and management of CMA membership including operations, programming, events and the organization’s newly launched membership structure; McNelly will take on a greater strategic role with communications and talent relations efforts across all of CMA’s events, programs and initiatives; Balch will continue to oversee reporting and financial standing for both CMA and the CMA Foundation; and Farris will lead the ticketing, data architecture and insights teams and serve as the lead ticketing strategist for all CMA events. Kerns can be reached at tkerns@cmaworld.com, McNelly can be reached at cmcnelly@cmaworld.com, Balch can be reached at bbalch@cmaworld.com and Farris can be reached at mfarris@cmaworld.com.
Anna Pittman was hired as vp of artist development at Warner Music Nashville. Pittman previously served as an artist development and marketing consultant for Warner Music Group and, prior to that, worked at Q Prime Artist Management for over 14 years.
FreshTracks Music UK, a new MCPS Production Music publisher, launched with John Clifford — former global head of BMG Production Music and managing director U.K. at Universal Music Publishing — serving as managing director. In the role, Clifford will be responsible for building the Martin Nedved-founded company’s U.K. team and label partners while continuing to run his consultancy business, True Road Music. Along with its own repertoire, FreshTracks Music UK will sub-publish select production music from international labels, expanding the wider FreshTracks Music network that currently operates in 10 European countries. Clifford can be reached at john.clifford@freshtracksmusic.co.uk.
Oak View Group (OVG) promoted Drew Gershenson to vp of content for Greater Palm Springs’ Acrisure Arena and vp of OVG’s Southwest division. Gershenson joined OVG in December 2021 and previously served as director of booking for Acrisure Arena. He will report to John Page, senior vp of Acrisure Arena, the Coachella Valley Firebirds and OVG360 Facilities. In his new role, Gershenson will continue to lead the day-to-day programming for the Acrisure Arena and support other OVG-managed properties including Snapdragon Stadium in San Diego, Mullett Arena in Tempe and Tahoe Blue Arena, which is scheduled to open this summer in South Lake Tahoe.
Mike Reynolds and Norman Jacob launched MNJR, a new full-service artist and label management group based in Nashville where they will both serve as managing partners. The firm launches with a roster that includes The Mavericks and the solo career of the group’s frontman, Raul Malo, as well as their label imprint Mono Mundo Recordings; alt-country group 49 Winchester; and emerging artist McKinley James. The MNJR team at launch also includes Rudy Newman, who will serve as operations manager. Reynolds can be reached at mreynolds@mnjr.co, Jacob can be reached at norman@mnjr.co and Newman can be reached at rudy@mnjr.co.
Marni Greenberg joined Sofar Sounds as vp of communications. She was most recently head of music communications at YouTube, where she worked for six years.
Amy Van-Baaren was promoted to the newly-created role of chief impact and culture officer at Resident Advisor; her previous title was head of community. In her new role, Van-Baaren will continue overseeing the company’s philanthropic initiatives while overseeing the internal company culture, community partnerships and Resident Advisor’s non-profit jobs board, Doors Open. She can be reached at avb@ra.co.
Josh Miely was promoted to vp of content design and development at the National Association of Broadcasters (NAB), effective April 27. In his new role, Miely will lead the design, development and delivery of content programming for NAB Show events, while also supporting content and program development efforts for virtual events on NAB Amplify, as well as regional and community-based events for the organization. He’ll report to NAB executive vp/managing director, global connections and events Chris Brown. Miely was previously director of member experience, industry affairs.
Leading livestreaming firm Bulldog DM hired Gilad Gershoni as its new chief strategy officer. Prior to joining Bulldog DM, Gershoni served as Twitter’s live video specialist and as senior live streaming producer at MLB Advanced Media. Gershoni will work closely with Bulldog DM’s founder/CEO John Petrocelli, COO Simon Rust Lamb and chief technology officer Peter Kahn to deliver cutting-edge solutions that meet the needs of Bulldog DM’s clients. He can be reached at gilad@bulldogdm.com.
Megan Kleinschmidt was hired as director of regional promotion at Monument Records. She joins the company from Universal Music Group, where she worked on the Capitol Nashville promotion team. In her new role, she will be responsible for the West Coast, where she’ll represent the full Monument roster.
Southern California music festival Desert Daze launched the record label Desert Daze Sound in partnership with Partisan Records, which will distribute releases on the imprint; Desert Daze’s Phil Pirrone will lead the label’s curation. The first release on the label will be Zango, the first album in nearly 40 years from “Zamrock” legends (and Desert Daze veterans) WITCH, which is set for release on June 2. The label will additionally put out a vinyl compilation series titled LIVE @ Desert Daze!
Three top Universal Music Group Nashville executives have exited their roles: executive vp of promotion Royce Risser, evp of A&R Brian Wright and senior vp of A&R Stephanie Wright, according to Country Aircheck. Representatives at UMG Nashville did not immediately respond to a request for comment.
Risser was promoted to evp in 2018. He began his career as an intern at MCA Records in 1991 and climbed the ranks as director, NE regional promotion, then director of national promotion and vp of promotion before assuming the role of svp of promotion for UMG Nashville in 2007.
Stephanie Wright joined UMGN more than two decades ago and previously served as vp of A&R. During her tenure with the label, Wright worked with artists including Kacey Musgraves, Luke Bryan and Sam Hunt, and was instrumental in albums including Musgraves’ Same Trailer Different Park and Hunt’s Montevallo.
Brian Wright also joined UMGN over two decades ago and was promoted to his evp role in 2018 and worked closely on albums including Jamey Johnson’s Lonesome Song, George Strait’s Troubadour and Chris Stapleton’s Traveller and From A Room Vols. 1 and 2.
The exits of the Wrights — who are married — and Risser come as Cindy Mabe officially began her role as UMG Nashville chairman/CEO on April 1, following former UMGN chairman/CEO Mike Dungan‘s retirement. Mabe was named president of UMGN in 2014 and with her rise to chairman/CEO, she becomes the first woman to serve as chairman/CEO of a Nashville-based major label group.
Earlier this year, Katie Dean left UMG after a two-decade tenure with the company; Dean had led MCA Nashville’s promotion team since 2015. In 2022, UMG Nashville’s Rachel Fontenot exited her role as vp of marketing and artist development, while vp of marketing Brad Turcotte left UMG Nashville to become partner at 615 Leverage + Strategy.
Meanwhile, former Arista Nashville artist Brad Paisley recently signed a deal with UMG’s EMI Nashville imprint.
Satellite radio company SiriusXM Holdings said on Tuesday (April 4) that Thomas Barry will take over as chief financial officer later this month, according to a company statement.
Barry succeeds Sean Sullivan, who is leaving Sirius on April 28 for an opportunity at another publicly traded company “outside the industry,” according to the statement.
Barry, a 14-year veteran of SiriusXM, takes on the job of head of finances amid a company-wide reorganization that involved eliminating 475 jobs in March, as SiriusXM shifts resources into technology initiatives.
Barry has experience in “organizational transformation,” the company said, having played a key role in the integration of Sirius and XM after its 2008 merger, including as it relates to Pandora and the connected vehicle business. Barry previously served as senior vice president and controller and as chief accounting officer at the company.
“Tom is an experienced leader who has played a key role on SiriusXM’s finance team for the last fourteen years and … (who) has deep insight into our business and SiriusXM’s strategic, operating and financial priorities,” Jennifer Witz, SiriusXM’s chief executive officer said in the statement.
SiriusXM will report its first quarter 20203 financial results on April 27.
WWE and the company that runs Ultimate Fighting Championship will combine to create a $21.4 billion sports entertainment company.
A new publicly traded company will house the UFC and World Wrestling Entertainment brands, with Endeavor Group Holdings Inc. taking a 51% controlling interest in the new company. Existing WWE shareholders will hold a 49% stake.
The companies put the enterprise value of UFC at $12.1 billion and WWE’s value at $9.3 billion.
The new business, which does not yet have a name, will be lead by Endeavor CEO Ari Emanuel. Vince McMahon, executive chairman at WWE, will serve in the same role at the new company. Dana White will continue as president of UFC and Nick Khan will be president at WWE.
“Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity,” McMahon said in a prepared statement Monday.
He also provided some idea of where the focus of the new company will be, saying that it will look to maximize the value of combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster their brands.
Ties already exists talent wise between WWE and UFC, with stars such as Brock Lesnar and Ronda Rousey crossing over between the two businesses.
The deal between Endeavor and WWE catapults WWE into a new era, after functioning as a family-run business for decades. McMahon purchased Capitol Wrestling from his father in 1982, and took the regional wrestling business to a national audience with the likes of wrestling stars such as Andre the Giant, Hulk Hogan and Dwayne “The Rock” Johnson. The company, which changed its name to World Wrestling Federation and later World Wrestling Entertainment, hosted its first WrestleMania in 1985.
McMahon, in an interview with CNBC, addressed the notion that there was doubt among some WWE fans and industry experts that he would ever make a deal for the business. “It’s the right time to do the right thing. And it’s the next evolution of WWE,” he said.
The announcement of the WWE sale arrives after McMahon, the founder and majority shareholder of WWE, returned to the company in January and said that it could be up for sale.
Rumors swirled about who would possibly be interested in buying WWE, with Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund all in the mix.
McMahon acknowledged to CNBC that there were several suitors for WWE, but that combining with Endeavor is the right move.
“It makes all the sense in the world for all these synergies that we have to extract all of the value that we can out of the marketplace,” he explained.
Media industry analysts viewed WWE as an attractive target given its global reach and loyal fanbase, which includes everyone from minors to seniors and a wide range of incomes.
The company held its marquee event, WrestleMania, over the weekend. Last year, WWE booked revenue of $1.3 billion.
The company is also a social media powerhouse. It surpassed 16 billion social video views in the final quarter of last year. It has nearly 94 million YouTube subscribers and has more than 20 million followers on TikTok. Its female wrestlers comprise five out of the top 15 most followed female athletes in the world, across Facebook, Twitter & Instagram, led by Ronda Rousey with 36.1 million followers.
WWE had more than 7.5 billion digital and social media views in January and February of this year, up 15% from the same time frame a year ago.
The new company plans to trade on the New York Stock Exchange under the “TKO” ticker symbol. Its board will have 11 members, with six being appointed by Endeavor and five being appointed by WWE.
“We like the assets of UFC and also WWE in a world where linear TV is losing market share to streaming, thus live sport content is in high demand,” wrote Jeffries analyst Randal Konik said in a note to clients.
The transaction, which was approved by the boards of Endeavor and WWE, is targeted to close in the second half of the year. It still needs regulatory approval.
Shares of World Wrestling Entertainment Inc., based in Stamford, Connecticut, are up 33% this year, but fell 5% at the opening bell Monday. Shares of Endeavor, based in Beverly Hills, California, slipped less than 1%.