From UMG’s accredited Downtown deal to Spotify’s AI ambitions… it’s MBW’s weekly round-up

This week, the European Fee accredited Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings.

Additionally this week, Spotify mentioned it has the tech able to allow followers to create AI-generated remixes and covers of their favourite artists’ music.

In the meantime, MBW reported, citing sources with data of the scenario, that Olivier Chastan’s music rights acquisition automobile, Iconoclast, is in discussions over a possible sale, with a price ticket of roughly $500 million.

Elsewhere, Create Music Group (CMG) introduced one other big-money deal – this time with Vancouver-headquartered indie Nettwerk Music Group.

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

1. SPOTIFY EYES AI ‘DERIVATIVES’ AS NEW REVENUE STREAM FOR ARTISTS – SAYS ITS TECH TO LET FANS MAKE REMIXES AND COVERS IS READY

Spotify mentioned it desires to allow listeners to work together with their favourite artists’ music via AI – and that the expertise to take action is already constructed.

The barrier? Licensing. The feedback, made by Co-CEO Gustav Söderström on the corporate’s This autumn 2025 earnings name, landed amid an intensifying trade debate over how AI-powered derivatives of present music ought to be licensed and monetized.

Söderström broke Spotify’s considering on AI music into two classes: internet new music created from scratch utilizing AI instruments, and “derivatives” of present music – AI-generated covers or remixes.

It’s the second class the place Spotify seems most excited. Söderström described derivatives as “an untapped alternative for artists to generate income off of their present IP”. (MBW)

2. OLIVIER CHASTAN’S ICONOCLAST IN SALE TALKS AT PRICE TAG OF AROUND $500 MILLION

MBW understands that Olivier Chastan’s music rights acquisition automobile, Iconoclast, is in discussions over a possible sale, with a price ticket of roughly USD $500 million.

In response to sources with data of the scenario, Iconoclast’s catalog is presently producing roughly USD $25 million to USD $35 million in annual earnings, derived from a mix of lively and passive rights.

Primarily based on these figures, a $500 million sale worth would symbolize a a number of of someplace between roughly 14x and 20x annual earnings.

MBW understands that Brian Richards, the founder and managing associate of monetary advisory agency Artisan, is taking part in a central function within the sale course of. Richards lately performed an instrumental half in The Weeknd’s unprecedented $1 billion catalog partnership cope with Lyric Capital Group.

A number of sources inform MBW that Iconoclast is in talks with roughly 10 totally different events, a mixture of main music corporations and enormous unbiased music rights funding companies… (MBW)

3. CREATE MUSIC GROUP STRIKES $300M INVESTMENT IN NETTWERK MUSIC GROUP, AS CANADIAN FIRM EXECUTES MANAGEMENT BUYOUT

Create Music Group (CMG) introduced one other big-money deal – this time with Vancouver-headquartered indie Nettwerk Music Group.

On February 6, Nettwerk confirmed that it has entered right into a definitive settlement to finish a administration buyout from its present traders.

As a part of the proposed association, CMG’s Create Capital will make investments over USD $300 million into Nettwerk on closing, and says it’s going to additionally present entry to “substantial follow-on capital and assist companies thereafter”.

In a press launch, the events acknowledged that the deal – anticipated to shut later this month – will enable the Nettwerk administration group to extend its possession stake, enabling the Canadian agency to retain its “id and independence”.

MBW understands the deal will see Create taking a controlling place in Nettwerk’s music IP portfolio, whereas Nettwerk itself stays independently owned and operated... (MBW)

4. THE EMPIRE STRIKES BACK: THE MAJORS AND MERLIN GAINED (A BIT) OF MARKET SHARE ON SPOTIFY LAST YEAR

It’s develop into a perennial commerce music trade story: The mixed international market share of the three main file corporations and Merlin on Spotify is in decline.

Effectively, no extra.

In 2025, in line with Spotify, this long-running pattern was really reversed. By a sliver, anyway... (MBW)

5. DONE DEAL: UMG’S DOWNTOWN ACQUISITION APPROVED BY EU COMPETITION REGULATOR

It’s a achieved deal. The European Fee has accredited Common Music Group’s proposed $775 million acquisition of Downtown Music Holdings.

The conditional approval is topic to UMG’s dedication to divest Downtown’s Curve royalty accounting enterprise.

The inexperienced mild from the EC, introduced Friday (February 13), concludes a regulatory course of spanning greater than a yr since UMG’s Virgin Music Group first introduced the transaction in December 2024… (MBW)