From BTS’ new label partner to Kobalt’s $1.1bn catalog sale to KKR: It’s MBW’s Weekly Round-up

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Welcome to Music Business Worldwide’s weekly round-up – the place we make certain you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and scale back their touring prices.


Nostradamus could be proud.

As appropriately predicted final Wednesday (October 6) on MBW’s Talking Trends podcast, this week noticed funding large KKR pour a lot more cash into music.

Kobalt Capital confirmed on Tuesday (October 19) that KKR has acquired the KMR Music Royalties II portfolio for roughly $1.1 billion.

The catalog incorporates over 62,000 copyrights throughout a number of genres, and KKR is teaming with co-investment partner Dundee Partners – the funding workplace of the Hendel household – for the transaction, which has been accomplished by Chord Music Partners, a platform established by KKR and Dundee.

That wasn’t the solely billion greenback story to hit our headlines this week.

As reported by MBW right this moment (October 22), Warner Music Group is now value $10 billion greater than it was a 12 months in the past, with the NASDAQ-traded music firm seeing its worth surge within the wake of rival Universal Music Group‘s flotation in Amsterdam in September.

It might not be all smooth sailing in major label land in the coming months, though.

That’s as a result of over within the UK, the Competition and Markets Authority (CMA) is launching a new research into music streaming, following the UK government’s response to a major label-bashing report from an inquiry concerning the economics of streaming within the nation.

Within that report, it was advisable that the CMA ought to conduct a new market research into streaming, and the ability of the foremost document corporations.

On Tuesday (October 19), Andrea Coscelli, Chief Executive of the CMA, introduced that it might be doing simply that.

Elsewhere this week, HYBE has confirmed that Ok-pop stars BTS are leaving Sony Music and Columbia Records within the US for a new take care of Universal Music Group and Interscope, and Liberty Media has offered its complete stake in US radio large iHeartMedia.

Here are the week’s largest tales…


1) CONFIRMED: KOBALT SELLS CATALOG TO NEW KKR VENTURE, CHORD, FOR $1.1 BILLION

Kobalt Capital confirmed on Tuesday (October 19) that funding large KKR has acquired the KMR Music Royalties II portfolio for roughly $1.1 billion.

KKR is teaming with co-investment partner Dundee Partners – the funding workplace of the Hendel household – to purchase the catalog, which incorporates over 62,000 copyrights throughout a number of genres.

The transaction has been accomplished by Chord Music Partners, a platform established by KKR with Dundee Partners….


2) WARNER MUSIC GROUP IS WORTH $10BN MORE THAN IT WAS A YEAR AGO

Yesterday (October 21), Warner Music Group completed the buying and selling day with a share value of $48.06, the very best level since WMG floated a portion of its firm on the NASDAQ in June 2020.

According to yCharts, WMG’s share value yesterday translated to an Enterprise Value (EV) for WMG of $27.66 billion…

The surge in Warner’s worth since Universal floated in Amsterdam has been one thing to behold, with WMG’s EV rising by a full $4 billion previously month alone (see above).

In the previous 12 months, Warner’s EV has shot up by over $10 billion, accelerated by Universal Music Group’s personal floatation (and Warner’s comparative valuation vs. UMG).


3) MAJOR RECORD COMPANIES FEEL THE HEAT AS UK COMPETITION WATCHDOG LAUNCHES NEW STUDY INTO MUSIC STREAMING

The UK’s Competition and Markets Authority (CMA) has introduced its agency intention to transfer forward with a market research into music streaming.

The CMA defines its market research as a “key tool to identify – and, if appropriate, to consider how best to tackle – any competition and consumer issues”.

It says that these research can lead to plenty of outcomes, together with: (i) making suggestions to the UK authorities to change rules or public coverage; (ii) encouraging companies available in the market to self-regulate; (iii) taking shopper or competitors legislation enforcement motion in opposition to companies; (iv) making a reference for a extra in-depth (“phase 2”) market investigation; or (v) giving a “clean bill of health”.

Obviously sufficient, the majors (and others) within the music trade shall be significantly eager on avoiding (iii) and (iv)….


4) BTS TO LEAVE SONY MUSIC’S COLUMBIA: ‘WE LOOK FORWARD TO OUR NEW CHAPTER IN PARTNERSHIP WITH UNIVERSAL.’

Ok-pop superstars BTS have signed a new take care of Universal Music Group/Interscope for distribution and advertising within the United States and different areas.

The new deal signifies that the band, signed to HYBE-owned label BigHit Music in Korea, are exiting their take care of Sony Music’s Columbia Records and distribution partner The Orchard.

In an official assertion offered to MBW right this moment (October 22), a HYBE spokesperson mentioned that the deal types a part of a “continued effort to expand the strategic partnership” with Universal Music Group, which was introduced in February….


5) LIBERTY MEDIA SELLS ITS STAKE IN US RADIO GIANT IHEARTMEDIA

Colorado-based media and leisure firm Liberty Media has offered off its complete stake in US radio large iHeartMedia.

An SEC submitting from publicly-traded iHeart reveals that Liberty offered 5,941,248 class A shares on October 5 at $25.25 per share.

Founded by Chairman John Malone in 1991 and led by CEO & President Greg Maffei since 2006, Liberty nonetheless owns a 33% stake in Live Nation Entertainment…..


MBW’s Weekly Round-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their income and reduce their touring costs.Music Business Worldwide

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