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

Welcome to Music Business Worldwide’s weekly roundup – where we make sure you know the five biggest stories that made our headlines over the past seven days. The MBW roundup is backed by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.

Nostradamus would be proud.

As was correctly predicted on the MBW podcast Talking Trends last Wednesday (October 6), this week was the investment giant KKR put a lot of money into music.

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

The catalog contains over 62,000 copyrights across multiple genres, and KKR is working with co-investment partner Dundee Partners – the Hendel family’s investment firm – on the transaction, which was completed by Chord Music Partners, a platform founded by KKR and Dundee .

That wasn’t the only billion dollar story to make our headlines this week.

As MBW reported today (October 22), Warner Music Group is now worth $ 10 billion more than it was a year ago, with the NASDAQ-traded music company increasing its value following the IPO of rival Universal Music Group in Amsterdam September experienced.

However, it could be that not everything goes smoothly in the country of the major labels in the coming months.

That’s because the Competition and Markets Authority (CMA) in the UK is launching a new study on music streaming after the UK government responded to a report on the bashing of big labels as part of an investigation into the economics of streaming in the country responded.

That report recommended that the CMA conduct a new market study on streaming and the power of the big record companies.

On Tuesday (October 19), Andrea Coscelli, CEO of the CMA, announced just that.

Elsewhere, HYBE confirmed this week that K-pop stars BTS are leaving Sony Music and Columbia Records in the US for a new deal with Universal Music Group and Interscope, and Liberty Media has its entire stake in US radio giant iHeartMedia sold.

Here are the biggest stories of the week …

11bn1) CONFIRMED: COBALT SELLS CATALOG TO NEW KKR COMPANY, CHORD, FOR 1.1 BILLION. $

Kobalt Capital confirmed on Tuesday (October 19) that investment giant KKR had acquired the KMR Music Royalties II portfolio for approximately $ 1.1 billion.

KKR is working with co-investment partner Dundee Partners – the Hendel family’s investment firm – to acquire the catalog, which contains over 62,000 copyrights across multiple genres.

The transaction was completed by Chord Music Partners, a platform established by KKR with Dundee Partners….

BTS2) WARNER MUSIC GROUP VALUE 10 BILLION. $ MORE THAN A YEAR AGO

Yesterday (October 21), Warner Music Group closed the trading day with a share price of $ 48.06, the highest level since WMG listed part of its company on NASDAQ in June 2020.

According to yCharts, WMG’s share price yesterday converted into an Enterprise Value (EV) for WMG of 27.66 billion US dollars …

The rise in value of Warner since Universal went public in Amsterdam is impressive, with WMG’s EV growing by a full 4 billion US dollars in the past month alone (see above).

In the past 12 months, Warner’s EV has skyrocketed over $ 10 billion, accelerated by Universal Music Group’s own IPO (and Warner’s comparative valuation against UMG).

catalog3) MAJOR record labels feel the heat as the British WATCHDOG competition launches a new study on music streaming

The UK’s Competition and Markets Authority (CMA) has announced its firm intention to conduct a market study on music streaming.

The CMA defines its market studies as “an important tool for identifying competition and consumer problems and, if necessary, considering how best to address them”.

It states that these studies can lead to a number of outcomes including: (i) recommendations to the UK government on changes to regulations or public order; (ii) encouraging companies in the market to self-regulate; (iii) Enforcement of consumer or competition law enforcement measures against businesses; (iv) creating a reference for a more in-depth (“Phase 2”) market investigation; or (v) issue a “clean health certificate”.

Obviously, the majors (and others) in the music industry will be particularly interested in avoiding (iii) and (iv) …

KKR4) BTS LEAVING SONY MUSIC’S COLUMBIA: “WE ARE LOOKING FORWARD TO OUR NEW CHAPTER IN PARTNERSHIP WITH UNIVERSAL.”

K-pop superstars BTS have signed a new deal with Universal Music Group / Interscope for sales and marketing in the US and other regions.

The new contract means that the band, who are under contract with HYBE’s own label BigHit Music in Korea, will end their contract with Columbia Records and Sony Music’s distribution partner The Orchard.

In an official statement delivered to MBW today (Oct. 22), a HYBE spokesperson said the deal is part of an “ongoing effort to expand the strategic partnership” with Universal Music Group announced in February … .

Kobalts5) LIBERTY MEDIA SELLS ITS SHARES TO US RADIO GIANT IHEARTMEDIA

Colorado-based media and entertainment company Liberty Media has sold its entire stake in US radio giant iHeartMedia.

An SEC filing by the publicly traded iHeart reveals that Liberty sold 5,941,248 Class A shares on Oct. 5 at $ 25.25 per share.

Liberty was founded in 1991 by Chairman John Malone and has been led by CEO & President Greg Maffei since 2006.

labelMBW’s weekly roundup is backed by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.Music business worldwide

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