Welcome to Music Business Worldwide’s weekly roundup – where we make sure you’ve grabbed the five biggest stories that made the headlines in the past seven days. MBW’s roundup is supported by Centtrip, which helps more than 500 of the world’s top-selling artists maximize revenue and reduce touring costs.
Who’s about to own the biggest music rights company on the planet?
That’s a question we can’t fully answer at this time, thanks to this week’s shenanigans in Vivendi’s attempt to sell a 10% stake in Universal Music Group.
The US-based PSPC which was Assumed to buy 10% of UMG this summer – Pershing Square Tontine Holdings (PSTH) – withdrew from the deal.
Instead, he made his deal to buy UMG shares from a company of the same name, Pershing Square Holdings Ltd (PSH), which is listed on the London Stock Exchange.
Crucial fact in this story: Vivendi confirmed this week that PSH can now not buy 10% of UMG for $ 4 billion, as initially agreed with PSTH.
Instead, PSH could buy as little as 5% of Universal, which would leave it up to Vivendi to find another the buyer to acquire the additional 5% left on the table by PSH.
Vivendi has undertaken to find this additional buyer, if necessary, by September 21… when 60% of UMG is expected to go public in Amsterdam.
Elsewhere this week, Warner Music Group has fallen for the assets of Doug Morris’s 12Tone Music, which counts Anderson .Paak among its catalog.
Fees for the deal were not disclosed, but given that Sony Music just paid nine figures for Todd Moscowitz’s Alamo Records, it’s a safe bet Morris made a pretty dime.
Maybe the more interesting thing about the purchase of the assets by Warner?
Apple is / was an investor in 12Tone, which means that a “traditional” player in the big record industry has just bought the ownership of the music rights from a global tech giant.
For a long time in the music world, observers – including MBW – ruminated on what might happen to record companies if tech giants began to acquire more and more bankable music rights directly.
Current evidence suggests that this trend is actually moving in the opposite direction, and not just because of the 12Tone story: Industry whisperers tell MBW that Alphabet / Google no longer has a stake in 300 Entertainment. , the New York blockbuster independent film. directed by Kevin Liles. (Google was one of the earliest sources of funding for 300, which was previously headed by Lyor Cohen, now global head of YouTube Music.)
In recent days, Sony Music Publishing has also announced – in a historic move – that it will disregard unrecovered balances for heritage songwriters who meet certain criteria, as CTS Eventim confirms it is fighting against Live Nation and co. by setting up in Asia.
See below for five of the biggest stories reported by MBW this week…
1) THE SALE OF 70% OF THE UNIVERSAL MUSIC GROUP OF VIVENDI BECAME … COMPLICATED
At the end of last week, Vivendi’s plan to sell 70% of Universal Music Group seemed fairly straightforward.
The French company had planned – and still plans – to sell 60% of UMG to the Amsterdam stock exchange in September (September 21, to be precise).
Additionally, Vivendi was to sell 10% of UMG in a $ 4 billion transaction to Bill Ackman’s US-based SPAC, Pershing Square Tontine Holdings (PSTH).
That all changed this week, when Ackman announced that his PSPC was canceling its acquisition and transferring its share purchase agreement to Pershing Square Holdings Ltd.
But that’s not the end of the matter …
2) WARNER MUSIC GROUP ACQUIRES THE ASSETS OF DOUG MORRIS’S 12TONE MUSIC
Warner Music Group (WMG) acquires the assets of 12Tone Music, the independent label founded in 2018 by music veteran Doug Morris.
As part of this agreement, Morris will continue to be actively engaged in the day-to-day operations of 12Tone Music and its artists.
Most recently distributed by ADA, the independent label and artist services arm of Warner, 12Tone’s catalog and roster includes artists such as Anderson .Paak, four-time Grammy winner Aftermath and the collective 88 Rising. (with world superstar Joji among their roster).
3) NOW THE SONY MUSIC EDITION DOES NOT ACCOUNT FOR NON-RECOVERED BALANCES FOR HERITAGE AUTRESS-COMPOSERS
Last month, in a move that drew widespread applause, Sony Music announced that it would disregard unclaimed balances for a series of heritage recording artists in its books.
The move was kicked off through an initiative called “Artists Forward” which the record company says focuses on “prioritizing transparency with creators in all aspects of their development.”
The flagship policy of this initiative, The Legacy Unrecouped Balance Program, has now been extended to songwriters, with Sony Music Publishing (SMP) today revealing that it will not account for future unclaimed balances for songwriters. -eligible composers …
4) CTS EVENTIM LAUNCHES EVENTIM LIVE ASIA IN PARTNERSHIP WITH EX-LIVE NATION EXEC JASON MILLER
The music industry should not sleep on the rapid growth of concert promoter and ticketing company CTS Eventim.
The Munich-based company achieved a turnover of 1.44 billion euros in 2019, more than three times its turnover a decade earlier (2009: 467 million euros).
Now, as the company looks to bounce back from a year of pandemic in 2020, it has made a major global decision by launching Eventim Live Asia (ELA) in partnership with Jason Miller….
5) SONY MUSIC CONTINUES $ 1 BILLION WORTH FITNESS BRAND GYMSHARK FOR CHILDHOOD OF 297 ADS RECORDINGS
Sony Music Entertainment (SME) has filed a copyright infringement complaint against UK-born fitness clothing brand Gymshark.
The fitness company, founded by Ben Francis in 2012, was valued at around $ 1.3 billion in August last year after selling a 21% stake to US-based General Atlantic. Gymshark is currently expanding in the United States.
In a legal document filed in California Thursday, July 15, Sony Music claims Gymshark “has achieved its success by forging sound recordings and musical compositions owned by a number of different content owners,” including SMEs, “to a massive scale ”. …
MBW’s Weekly Round-Up is supported by Centtrip, which helps more than 500 of the world’s top-selling artists maximize their income and lower their touring costs.Music trade around the world