Reservoir acquires minority stake in China-based Outdustry and types JV to accumulate native music catalogs
New York-based Reservoir has reached an agreement with China-based industrial services company Outdustry that will make Reservoir a minority shareholder in the company.
The two companies have also formed a joint venture to hire and develop Chinese artists and songwriters, as well as acquire local music catalogs.
This new investment in Outdustry builds on an existing sub-publishing partnership announced in June 2020 that became Outdustry Songs exclusive sub-publisher in China for Reservoir’s songwriter list and copyright catalog.
Since that agreement, Reservoir says collections from the area have grown a triple-digit percentage.
According to Reservoir, Outdustry, which has direct contracts with all major Chinese music services, “has created its own ecosystem to monetize the hundreds of millions of new digital music consumers in the area.”
Reservoir adds that its investment in Outdustry extends its strategy to other emerging music markets, building on its successes in China and India, where it signed multi-platinum rapper DIVINE and entered into a joint venture with Gully Gang Entertainment in 2020.
According to Reservoir, the deal underscores its belief in “the growth potential” of these areas and “strengthens its entry into emerging markets in 2020” via another joint venture with MENA-based music publisher PopArabia, led in a dual role by PopArabia founder / president and Reservoir EVP of International and Emerging Markets Hussain “Spek” Yoosuf.
Today’s news also follows the announcement that Reservoir has entered into an agreement with Roth CH II ($ ROCC), a special-purpose acquisition company, taking the first step in becoming a publicly traded company listed on the Nasdaq .
As a result of the transaction, Reservoir will go public on NASDAQ under the ticker “RSVR” through the new combined company Reservoir Media Inc.
The transaction gives the combined company an enterprise value of $ 788 million and is expected to generate gross proceeds of approximately $ 246 million for the company.
“We are confident that expanding our partnership with Outdustry will build on our incredible success to date and deepen our presence in emerging markets.”
Golnar Khosrowshahi, reservoir
Golnar Khosrowshahi, Founder and CEO of Reservoir, said, “We are confident that expanding our partnership with Outdustry will build on our incredible success to date and deepen our presence in emerging markets.”
“Outdustry joins PopArabia as one of our trusted local partners in these emerging markets and is expanding our presence ahead of the expected exponential growth.”
Spek added, “Outdustry is joining PopArabia as one of our trusted local partners in these emerging markets and building our presence ahead of the expected exponential growth.”
“Reservoir has been exemplary of all of these things for over a decade, making this partnership a perfect alignment, while Outdustry enables us to take the next steps on our ambitious path.”
Ed Peto, external trade
Ed Peto, Outdustry CEO, said, “At Outdustry, we have always prided ourselves on our independence, our artistic approach and our belief in a better music industry wherever we are in the world.
“Reservoir has exemplified all of these things for over a decade, making this partnership a perfect match as Outdustry enables us to take the next steps on our ambitious journey.”Music business worldwide