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 Section II investigation into Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings, citing preliminary issues about potential decreased competitors.
Elsewhere, Warner Music Group promoted Alejandro Duque to a twin function as President of each ADA and Warner Music Latin America, increasing his duties throughout the corporate’s distribution and companies 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 often 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 honest justification.
Listed below are among the largest 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 “gasoline continued development” 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 Section 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 might cut back competitors in wholesale distribution of recorded music within the European Financial Space.
The EC mentioned it’s “preliminarily involved that the transaction might enable UMG to cut back competitors available in the market for the availability of artist and label companies within the EEA by eradicating an essential aggressive pressure” and that UMG might 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 Section II investigation course of. A UMG spokesperson mentioned the corporate “stays assured that the mix of Virgin and Downtown will create an improved providing within the rising and extremely aggressive label companies class that presently 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 companies division for indie labels and artists, increasing on his present duties as President of Warner Music Latin America. Duque will proceed to be primarily based 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 mentioned a key driver of his success has been his skill to convey the corporate nearer to the impartial neighborhood and spearhead development of its distribution enterprise within the area.
Duque succeeds former ADA President Cat Kreidich, who left the function as reported on Tuesday (July 22). Robert Kyncl mentioned Duque’s management will assist differentiate ADA by “offering impartial labels and artists with alternatives at a velocity and scale they received’t discover anyplace 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 often 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 consists of recorded music and/or publishing rights from artists such because the Purple Sizzling Chili Peppers, Journey, Justin Bieber, and Shakira.
Based on a report from Kroll Bond Score Company, primarily based 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 not too long ago was often known as Hipgnosis Songs Fund was value $2.61 billion as of the tip of March, representing speedy development since Blackstone acquired it in summer season 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 score of A, noting that streaming revenues proceed to symbolize a optimistic tailwind to trade development 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 exceptional development trajectory, positioning itself as one of many music trade’s most important impartial gamers. Based in 2010 and completely 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 by way of the whole lot ONErpm does, from primary distribution agreements to full label companies offers, catalog acquisition, and joint ventures.
Notably, when requested concerning the Downtown-Common deal, Zunz mentioned he responded to the European Fee’s questionnaire by emphasizing there are many alternate options for impartial artists and labels available in the market… (MBW)
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