Welcome to Music Enterprise Worldwide’s weekly round-up – the place we be sure that you caught the 5 greatest 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 cut back their touring prices.
Does Spotify consider the market is presently undervaluing its inventory?
That is perhaps one motive why SPOT right now (August 20) introduced that its board has authorized a inventory repurchase program by the corporate as much as the worth of $1 billion.
Spotify’s market cap on the New York Inventory Trade fell by 43% – or a smidgen over $30 billion – from its 2021 peak on February 19 ($69.35bn) to the shut of yesterday ($39.24bn).
By shopping for again inventory, Spotify’s administration are betting on an upswing within the second half of the yr and past.
SPOT’s share worth has bounded up by over 6% right now off the again of the information.
Speaking of fluctuations within the valuation of music enterprise belongings: How would possibly a headline information scandal have an effect on the price of Bob Dylan’s tune catalog?
That’s a giant query this week, after the legendary singer/songwriter denied a brand new allegation that he sexually abused a lady when she was 12 years outdated in 1965. That girl, recognized as “J.C.” in authorized papers, claims that the alleged abuse passed off in New York’s Chelsea Resort over a six-week interval.
Based on Rolling Stone, Dylan specialists are suggesting that the artist could have been performing abroad for at the least a number of the time in query. Common Music Group – which paid between $300 million and $400 million for Dylan’s tune catalog final yr – might be watching proceedings very carefully.
Elsewhere this week, Downtown introduced a serious change to its management, as DistroKid took on recent funding… at an eye-popping valuation.
See beneath for the largest music biz headlines of the previous 5 days…
1) Spotify is able to purchase again $1bn in inventory from shareholders
Spotify introduced right now (August 20) that it’s commencing a inventory repurchase program starting within the third quarter of 2021 (i.e. the three months to finish of September).
Spotify’s board has authorized repurchases as much as the quantity of $1.0 billion, whereas a repurchase of as much as 10 million of the agency’s unusual shares have been authorized at a normal assembly of shareholders.
The rationale an organization would possibly challenge a share buyback are assorted, however one key motivation is commonly when a agency believes its inventory is undervalued by the market, and has the potential to develop in future.
2) Bob Dylan denies sexual abuse declare courting again to 1965
Bob Dylan is being sued by a lady who says the Blowin’ In The Wind star sexually abused her in 1965 when she was 12.
The lawsuit claims that the alleged abuse passed off at Dylan’s house in New York’s Chelsea Resort.
Dylan’s spokesman mentioned “the 56-year-old declare is unfaithful and might be vigorously defended”.
3) Andrew Bergman named CEO of Downtown, Justin Kalifowitz takes new position
It’s been an eventful few months for Downtown Music Holdings. In April, the New York-based agency offered its whole owned music rights catalog to Harmony for $400 million. Then, it re-launched its flagship subsidiary as Downtown Music Companies, working with companions in each publishing and recorded music.
This week, one other main new chapter for the corporate: Downtown Music Holdings (DMH) introduced that its founder, Justin Kalifowitz, will vacate his position as CEO to take up a brand new place as DMH’s Government Chairman.
Kalifowitz might be succeeded as CEO by DMH’s present COO, Andrew Bergman. Bergman will assume all day-to-day duties as CEO efficient September 1.
4) DistroKid valued at $1.3 billion following new funding
DistroKid is a unicorn.
The US-based DIY distribution platform confirmed this week that it has accepted an funding from Perception Companions which values it at $1.3 billion.
Silversmith Capital Companions, a Boston-based progress fairness agency that led DistroKid’s first outdoors funding in 2018, will retain “a significant possession place” and stay on DistroKid’s board.
5) SESAC acquires royalty assortment platform Audiam
SESAC, the US-headquartered Performing Rights Group, has majority-acquired streaming royalties assortment company Audiam.
A controlling stake in Audiam has been offered to SESAC for an undisclosed price by Canadian licensing society SOCAN.
The acquisition of Audiam by SESAC brings the previous firm into the identical secure because the Harry Fox Company (HFA), the rights licensing platform that was acquired by SESAC from the Nationwide Music Publishers’ Affiliation (NMPA) in 2015.
MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.Music Enterprise Worldwide
