Welcome to music business worldwide‘s weekly roundup – in which we make sure you catch the five biggest stories to hit our headlines in the last seven days. The summary of MBW is supported by centtriphelping over 500 of the world’s best-selling artists maximize their income and reduce touring costs.
Music’s next big money-making move could be right around the corner.
This week MBW reported that Qanawat Music, which operates as a music distributor in the Middle East and North Africa, is for sale.
Our sources suggest the asking price for the company is a hefty eight-figure sum and that several major music companies have kicked the hoops in a possible takeover.
That’s what we’re told Warner Music Group is the current favorite to acquire Qanawat Music from its current owner, mobile technology company Qanawat.
Speaking of big music deals, MBW also reported this week that Tempo Music, the music rights acquisition fund set up by private equity giant Providence, is selling its music catalogue.
Our sources tell us that Tempo’s portfolio is said to have an annual NPS (Net Publisher Share, ie gross profit) of “over $30 million.” This allowed MBW to make an educated estimate of the catalog’s potential future retail price, and that estimate was approximately $500 million or more.
Elsewhere, Paris headquarters Believe yesterday (March 17) released its 2021 financial results – its first full-year results since its IPO on Paris’ Euronext last summer, where it currently has a market cap of 1.21 billion euros ($1.43 billion) having.
Believe increased its revenue by €135.8 million (30.7%) year-on-year from €441.4 million in 2020 to €577.2 million ($682 million) last year.
Also this week, Universal’s Virgin Music entered into a global partnership with Australia’s largest indie company – mushroom group — while TikTok confirmed that TuneCore has been selected as a distribution partner for its new SoundOn service.
Here’s what happened this week.
Tempo Music, the music rights acquisition fund set up by private equity giant Providence, is selling its music catalogue.
MBW has been informed by three senior industry sources that US-based Tempo’s rights portfolio is now on the market. A deck of information about the sale was distributed to potential buyers across the company.
Since its launch in 2019, Tempo Music has acquired a catalog of rights / revenue streams from the likes of Wiz Khalifa, Twenty One Pilots (via Tyler Joseph), Korn, Florida Georgia Line and hit songwriter/producer Philip Lawrence…
The music industry has seen its fair share of major international takeovers in recent years – not least sony musics $255 million acquisition of Brazilian company Som Livre.
MBW originally gave our readers early notice of this Som Livre sale back in March 2021; Sony Music then confirmed it had agreed to an acquisition the following month.
On Wednesday (March 16) we brought you news of the next major acquisition of an international music company: Qanawat Music, which operates as a music distribution company in the Middle East and North Africa.
Headquartered in Paris, Believe released its financial results for 2021 yesterday (March 17).
The company reports that it increased its revenue by €135.8 million (30.7%) year-on-year, from €441.4 million in 2020 to €577.2 million ($682 million) last year .
These results mark the company’s first full-year results since its IPO on Paris’ Euronext last summer, where it currently has a market cap of 1.21 billion euros ($1.43 billion).
Universal music groupVirgin Music’s Label & Artist Services (VLMAS) division has entered into a global partnership with Australia’s largest independent label group, Mushroom, to support and distribute the releases of Mushroom artists worldwide outside of Australia and New Zealand.
The Mushroom Label Division will remain 100% independently owned and its established ANZ operations will remain unchanged as a result of the partnership.
Mushroom will continue to distribute digitally in ANZ, as Merlin members and continues its longstanding physical distribution partnership with Universal Music Australia.
TikTok has now confirmed to MBW that TuneCore, Believe’s own digital distribution platform, has been selected as a distribution partner for SoundOn.
TuneCore is the service’s distribution partner, we’re told, since SoundOn quietly launched in beta last September.
https://www.musicbusinessworldwide.com/from-believes-682m-revenues-to-musics-next-big-money-buyout-its-mbws-weekly-round-up/ From Believe’s $682 million in earnings to music’s next big-money buyout, it’s MBW’s Weekly Round-Up