This week, Harmony closed its largest-ever asset-backed securities transaction, elevating USD $1.765 billion backed by over 1.3 million music copyrights.
In the meantime, the European Fee confirmed that it was opening an in-depth Part II investigation into Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings, citing preliminary issues about potential lowered competitors.
Elsewhere, Warner Music Group promoted Alejandro Duque to a twin position as President of each ADA and Warner Music Latin America, increasing his tasks throughout the corporate’s distribution and providers division. Duque takes over as head of ADA from Cat Kreidich, who’s leaving the corporate.
Additionally this week, Recognition Music Group introduced plans for a $372 million bond sale backed by its catalog previously generally known as Hipgnosis Songs Fund, whereas ONErpm founder Emmanuel Zunz declared that conventional trade classes like “document labels” and “distribution corporations” now not exist… with truthful justification.
Listed here are among the greatest headlines from the previous few days…
1. CONCORD CLOSES $1.76 BILLION ASSET-BACKED SECURITIES TRANSACTION TO ‘FUEL CONTINUED GROWTH’
Harmony has efficiently closed its newest asset-backed securities transaction to “gas continued progress” on the impartial music firm. The corporate issued $1.765 billion in bonds by way of a sequence of latest five-year, seven-year, and ten-year senior notes backed by Harmony’s catalog of over 1.3 million music copyrights.
The bonds are secured by Harmony’s portfolio that includes songs and recordings from artists together with The Beatles, Beyoncé, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Think about Dragons, John Fogerty, Kiss, Michael Jackson, Otis Redding, Phil Collins, Pink Floyd, R.E.M., Rihanna, Rodgers & Hammerstein, Taylor Swift, and The Rolling Stones… (MBW)
2. EU OPENS IN-DEPTH INVESTIGATION INTO UMG’S $775M DOWNTOWN DEAL
The European Fee has opened an in-depth Part II investigation into Common Music Group’s $775 million acquisition of Downtown Music Holdings, saying on Tuesday (July 22) that it has preliminary issues the deal could cut back competitors in wholesale distribution of recorded music within the European Financial Space.
The EC stated it’s “preliminarily involved that the transaction could enable UMG to scale back competitors out there for the provision of artist and label providers within the EEA by eradicating an necessary aggressive power” and that UMG may purchase commercially delicate knowledge from rival document labels. UMG’s Virgin Music Group revealed in December that it had agreed to purchase Downtown Music Holdings LLC within the $775 million deal.
The Fee now has till November 26 to decide following the 90-day Part II investigation course of. A UMG spokesperson stated the corporate “stays assured that the mix of Virgin and Downtown will create an improved providing within the rising and extremely aggressive label providers class that at present consists of roughly 100 corporations”… (MBW)
3. ALEJANDRO DUQUE TAKES ON DUAL ROLE AS PRESIDENT OF ADA AND PRESIDENT OF WARNER MUSIC LATIN AMERICA
Alejandro Duque has been named President of ADA, Warner Music Group’s distribution and providers division for indie labels and artists, increasing on his present tasks as President of Warner Music Latin America. Duque will proceed to be based mostly in Miami and report back to WMG CEO Robert Kyncl.
Since serving as President of Warner Music Latin America from 2021, Duque has championed breakthrough artists equivalent to Blessd, Danny Ocean, Elena Rose, Myke Towers, Natanael Cano, Ovy on the Drums, Tiago PZK, Tokischa, Yami Safdie, and Yandel. WMG stated a key driver of his success has been his potential to deliver the corporate nearer to the impartial group and spearhead progress of its distribution enterprise within the area.
Duque succeeds former ADA President Cat Kreidich, who left the position as reported on Tuesday (July 22). Robert Kyncl stated Duque’s management will assist differentiate ADA by “offering impartial labels and artists with alternatives at a pace and scale they received’t discover wherever else”… (MBW)
4. RECOGNITION MUSIC GROUP PLANS $372M BOND SALE – AS VALUE OF CATALOG ONCE KNOWN AS HIPGNOSIS SONGS FUND CONTINUES TO BALLOON
Recognition Music Group, the Blackstone-owned firm that now controls the portfolio previously generally known as Hipgnosis Songs Fund, is planning a $372 million issuance of five-year bonds backed by its multi-billion-dollar music catalog. The catalog contains recorded music and/or publishing rights from artists such because the Pink Scorching Chili Peppers, Journey, Justin Bieber, and Shakira.
Based on a report from Kroll Bond Ranking Company, based mostly on a third-party valuation as of March 31, the catalog backing Recognition’s ABS transaction was value $2.95 billion, inclusive of $340.8 million in extra property that Recognition added to it. This means the portfolio that till lately was generally known as Hipgnosis Songs Fund was value $2.61 billion as of the tip of March, representing speedy progress since Blackstone acquired it in summer time 2024.
The Recognition portfolio consists of round 47,000 grasp recordings, compositions, and associated property with a weighted common age of round 21 years. KBRA gave the bond issuance a ranking of A, noting that streaming revenues proceed to symbolize a optimistic tailwind to trade progress and catalog cashflow… (MBW)
5. ONERPM’S EMMANUEL ZUNZ: ‘THERE ARE NO MORE DISTRIBUTION COMPANIES, THERE ARE NO MORE RECORD LABELS. THERE ARE JUST COMPANIES PROVIDING SOLUTIONS TO CREATORS.’
Nashville-headquartered ONErpm has continued its outstanding progress trajectory, positioning itself as one of many music trade’s most vital impartial gamers. Based in 2010 and fully self-funded, ONErpm is on monitor to hit round $300 million in gross income this yr, working in 40+ territories globally with a claimed 2.7% worldwide market share on Spotify.
ONErpm founder Emmanuel Zunz bristles at conventional trade categorizations, stating: “There are not any extra ‘distribution’ corporations, and there are not any extra ‘document labels’. There are simply corporations offering options to creators.” It’s a philosophy that runs via the whole lot ONErpm does, from primary distribution agreements to full label providers offers, catalog acquisition, and joint ventures.
Notably, when requested concerning the Downtown-Common deal, Zunz stated he responded to the European Fee’s questionnaire by emphasizing there are many options for impartial artists and labels out there… (MBW)
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