From Harmony’s $1.76 billion ABS transaction to Common Music Group’s EU scrutiny… it’s MBW’s weekly round-up

This week, Harmony closed its largest-ever asset-backed securities transaction, elevating USD $1.765 billion backed by over 1.3 million music copyrights.

In the meantime, the European Fee confirmed that it was opening an in-depth Part II investigation into Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings, citing preliminary issues about potential decreased competitors.

Elsewhere, Warner Music Group promoted Alejandro Duque to a twin position as President of each ADA and Warner Music Latin America, increasing his tasks throughout the corporate’s distribution and providers division. Duque takes over as head of ADA from Cat Kreidich, who’s leaving the corporate.

Additionally this week, Recognition Music Group introduced plans for a $372 million bond sale backed by its catalog previously often called Hipgnosis Songs Fund, whereas ONErpm founder Emmanuel Zunz declared that conventional trade classes like “file labels” and “distribution firms” now not exist… with honest justification.

Listed here are a few of the largest headlines from the previous few days…

1. CONCORD CLOSES $1.76 BILLION ASSET-BACKED SECURITIES TRANSACTION TO ‘FUEL CONTINUED GROWTH’

Harmony has efficiently closed its newest asset-backed securities transaction to “gasoline continued progress” on the unbiased music firm. The corporate issued $1.765 billion in bonds through a collection of latest five-year, seven-year, and ten-year senior notes backed by Harmony’s catalog of over 1.3 million music copyrights.

The bonds are secured by Harmony’s portfolio that includes songs and recordings from artists together with The Beatles, Beyoncé, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Think about Dragons, John Fogerty, Kiss, Michael Jackson, Otis Redding, Phil Collins, Pink Floyd, R.E.M., Rihanna, Rodgers & Hammerstein, Taylor Swift, and The Rolling Stones… (MBW)

2. EU OPENS IN-DEPTH INVESTIGATION INTO UMG’S $775M DOWNTOWN DEAL

The European Fee has opened an in-depth Part II investigation into Common Music Group’s $775 million acquisition of Downtown Music Holdings, saying on Tuesday (July 22) that it has preliminary issues the deal could cut back competitors in wholesale distribution of recorded music within the European Financial Space.

The EC stated it’s “preliminarily involved that the transaction could enable UMG to cut back competitors available in the market for the provision of artist and label providers within the EEA by eradicating an essential aggressive power” and that UMG may purchase commercially delicate information from rival file labels. UMG’s Virgin Music Group revealed in December that it had agreed to purchase Downtown Music Holdings LLC within the $775 million deal.

The Fee now has till November 26 to decide following the 90-day Part II investigation course of. A UMG spokesperson stated the corporate “stays assured that the mix of Virgin and Downtown will create an improved providing within the rising and extremely aggressive label providers class that at the moment consists of roughly 100 firms”… (MBW)

3. ALEJANDRO DUQUE TAKES ON DUAL ROLE AS PRESIDENT OF ADA AND PRESIDENT OF WARNER MUSIC LATIN AMERICA

Alejandro Duque has been named President of ADA, Warner Music Group’s distribution and providers division for indie labels and artists, increasing on his current tasks as President of Warner Music Latin America. Duque will proceed to be primarily based in Miami and report back to WMG CEO Robert Kyncl.

Since serving as President of Warner Music Latin America from 2021, Duque has championed breakthrough artists similar to Blessd, Danny Ocean, Elena Rose, Myke Towers, Natanael Cano, Ovy on the Drums, Tiago PZK, Tokischa, Yami Safdie, and Yandel. WMG stated a key driver of his success has been his capacity to convey the corporate nearer to the unbiased group and spearhead progress of its distribution enterprise within the area.

Duque succeeds former ADA President Cat Kreidich, who left the position as reported on Tuesday (July 22). Robert Kyncl stated Duque’s management will assist differentiate ADA by “offering unbiased labels and artists with alternatives at a velocity and scale they received’t discover wherever else”… (MBW)

4. RECOGNITION MUSIC GROUP PLANS $372M BOND SALE – AS VALUE OF CATALOG ONCE KNOWN AS HIPGNOSIS SONGS FUND CONTINUES TO BALLOON

Recognition Music Group, the Blackstone-owned firm that now controls the portfolio previously often called Hipgnosis Songs Fund, is planning a $372 million issuance of five-year bonds backed by its multi-billion-dollar music catalog. The catalog consists of recorded music and/or publishing rights from artists such because the Crimson Sizzling Chili Peppers, Journey, Justin Bieber, and Shakira.

Based on a report from Kroll Bond Ranking Company, primarily based on a third-party valuation as of March 31, the catalog backing Recognition’s ABS transaction was value $2.95 billion, inclusive of $340.8 million in further belongings that Recognition added to it. This means the portfolio that till lately was often called Hipgnosis Songs Fund was value $2.61 billion as of the top of March, representing fast progress since Blackstone acquired it in summer season 2024.

The Recognition portfolio consists of round 47,000 grasp recordings, compositions, and associated belongings with a weighted common age of round 21 years. KBRA gave the bond issuance a score of A, noting that streaming revenues proceed to characterize a constructive tailwind to trade progress and catalog cashflow… (MBW)

5. ONERPM’S EMMANUEL ZUNZ: ‘THERE ARE NO MORE DISTRIBUTION COMPANIES, THERE ARE NO MORE RECORD LABELS. THERE ARE JUST COMPANIES PROVIDING SOLUTIONS TO CREATORS.’

Nashville-headquartered ONErpm has continued its exceptional progress trajectory, positioning itself as one of many music trade’s most vital unbiased gamers. Based in 2010 and fully self-funded, ONErpm is on monitor to hit round $300 million in gross income this 12 months, working in 40+ territories globally with a claimed 2.7% worldwide market share on Spotify.

ONErpm founder Emmanuel Zunz bristles at conventional trade categorizations, stating: “There aren’t any extra ‘distribution’ firms, and there aren’t any extra ‘file labels’. There are simply firms offering options to creators.” It’s a philosophy that runs by every little thing ONErpm does, from fundamental distribution agreements to full label providers offers, catalog acquisition, and joint ventures.

Notably, when requested concerning the Downtown-Common deal, Zunz stated he responded to the European Fee’s questionnaire by emphasizing there are many options for unbiased artists and labels available in the market… (MBW)

MBW’s Weekly Spherical-Up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their earnings and cut back their touring prices.Music Enterprise Worldwide