Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce their touring costs.
In a submission to the UK government’s consultation on AI and copyright law, Sony Music revealed that it has already requested the removal of more than 75,000 AI-generated deepfakes of its artists’ content, illustrating just how rapidly this problem has exploded.
Also this week, Blackstone, which acquired Hipgnosis Songs Fund last year for $1.58 billion, announced that it’s rebranding Hipgnosis assets as Recognition Music Group. However, MBW‘s sources say the Hipgnosis name may live on, as Merck Mercuriadis has apparently retained the rights to it, and may use it as the name of his new company.
Meanwhile, MBW broke the news this week that Concord is very close to making another significant acquisition. This time, the target is Stem, a Los Angeles-headquartered music distribution and payments platform. Our sources tell us the deal is in the high eight figures.
While Concord is buying, Pershing Square is selling. Bill Ackman‘s investment firm is planning to sell a 2.7% stake in Universal Music Group for $1.4 billion, according to a Bloomberg report.
Finally, Believe released its 2024 annual report, showing revenue growth of 11.5% YoY on an organic basis to EUR €988.8 million (USD $1.070 billion).
Sony Music has challenged the UK government’s proposed copyright reforms, revealing it has already requested the removal of more than 75,000 AI-generated deepfakes of its artists’ content.
The music giant warned that proposed changes to copyright laws would be “rushed, unbalanced and irreversible” and could significantly harm the British creative economy.
In a submission to the government’s consultation on AI and copyright law, obtained by the Financial Times and The Sunday Times, Sony described the proposals as a threat to an industry that contributes £7.6 billion (USD $8.23 billion) annually to the UK economy.
The consultation, which closed on February 25, centers on plans to introduce a “text and data mining” exemption that would allow AI companies to use copyrighted materials for training purposes without permission unless creators specifically opt out…
Blackstone has announced that it will no longer be using the Hipgnosis name.
Instead, it’s bringing together its 45,000 songs and the team charged with maximizing their earnings under a new brand: Recognition Music Group.
As part of this refresh, Blackstone hints that further acquisitions may be on the way, noting in a press release: “Building on its relationship with songwriters and artists and as a highly capable business for acquiring and managing catalogues, Recognition is well positioned for future growth and to deliver superior returns to its investors.”
Industry whisperers tell MBW that, just as Storm Thorgerson wished all those years ago, Merck Mercuriadis has retained his rights to the Hipgnosis name and company identity.
In fact, one source suggests that Mercuriadis is likely to use the Hipgnosis name for the new company he’s building, which is set to be unveiled later this year…
MBW hears that Concord is very close to making another significant acquisition.
Our sources tell us that the company is in the final stages of acquiring Stem, a Los Angeles-headquartered music distribution and payments platform, in a high eight-figure deal, above $50 million.
The deal isn’t quite done yet, according to our sources. We also hear that The Raine Group is in the middle of it.
This news arrives around four months after Concord successfully closed an asset-backed securities (ABS) transaction, which saw the company raise $850 million in debt financing through a private securitization backed by its catalog of music rights…
Bill Ackman’s Pershing Square is set to raise $1.4 billion from the sale of “about a 2.7% stake” in Universal Music Group.
That’s according to Bloomberg, which reported this afternoon (March 13) that it has seen terms of a deal that show “Pershing Square Holdings Ltd., Pershing Square LP and Pershing Square International Ltd. are poised to price an offering of about 50 million Universal Music shares at €26.60 each”.
Bloomberg also reported that Morgan Stanley is working on the share sale.
In a statement published on X on Thursday, Ackman said: “We decided to sell a portion of our UMG position today”…
Paris-headquartered music company Believe has published its financial results for FY 2024 (the 12 months ending December 31).
According to Believe’s filing, the company generated revenues of EUR €988.8 million (USD $1.070 billion) in 2024 across its entire business.
The company’s FY revenues grew by €108.5 million ($117.42m), from €880.3 million in 2023, reflecting an increase of 12.3% YoY.
On an organic basis (at a like-for-like perimeter and constant exchange rate), Believe’s revenues grew 11.5% YoY….
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
