This week, Concord closed its largest-ever asset-backed securities transaction, raising USD $1.765 billion backed by over 1.3 million music copyrights.
Meanwhile, the European Commission confirmed that it was opening an in-depth Phase II investigation into Universal Music Group‘s proposed $775 million acquisition of Downtown Music Holdings, citing preliminary concerns about potential reduced competition.
Elsewhere, Warner Music Group promoted Alejandro Duque to a dual role as President of both ADA and Warner Music Latin America, expanding his responsibilities across the company’s distribution and services division. Duque takes over as head of ADA from Cat Kreidich, who is leaving the company.
Also this week, Recognition Music Group announced plans for a $372 million bond sale backed by its catalog formerly known as Hipgnosis Songs Fund, while ONErpm founder Emmanuel Zunz declared that traditional industry categories like “record labels” and “distribution companies” no longer exist… with fair justification.
Here are some of the biggest headlines from the past few days…
1. CONCORD CLOSES $1.76 BILLION ASSET-BACKED SECURITIES TRANSACTION TO ‘FUEL CONTINUED GROWTH’
Concord has successfully closed its latest asset-backed securities transaction to “fuel continued growth” at the independent music company. The company issued $1.765 billion in bonds via a series of new five-year, seven-year, and ten-year senior notes backed by Concord’s catalog of over 1.3 million music copyrights.
The bonds are secured by Concord’s portfolio featuring songs and recordings from artists including The Beatles, Beyoncé, Bruno Mars, Carrie Underwood, Creedence Clearwater Revival, Daddy Yankee, Ed Sheeran, Genesis, Imagine 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 Commission has opened an in-depth Phase II investigation into Universal Music Group’s $775 million acquisition of Downtown Music Holdings, announcing on Tuesday (July 22) that it has preliminary concerns the deal may reduce competition in wholesale distribution of recorded music in the European Economic Area.
The EC said it is “preliminarily concerned that the transaction may allow UMG to reduce competition in the market for the supply of artist and label services in the EEA by removing an important competitive force” and that UMG could acquire commercially sensitive data from rival record labels. UMG’s Virgin Music Group revealed in December that it had agreed to buy Downtown Music Holdings LLC in the $775 million deal.
The Commission now has until November 26 to make a decision following the 90-day Phase II investigation process. A UMG spokesperson said the company “remains confident that the combination of Virgin and Downtown will create an improved offering in the growing and highly competitive label services category that currently consists of roughly 100 companies”… (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 services division for indie labels and artists, expanding on his existing responsibilities as President of Warner Music Latin America. Duque will continue to be based in Miami and report to WMG CEO Robert Kyncl.
Since serving as President of Warner Music Latin America from 2021, Duque has championed breakthrough artists such as Blessd, Danny Ocean, Elena Rose, Myke Towers, Natanael Cano, Ovy on the Drums, Tiago PZK, Tokischa, Yami Safdie, and Yandel. WMG said a key driver of his success has been his ability to bring the company closer to the independent community and spearhead growth of its distribution business in the region.
Duque succeeds former ADA President Cat Kreidich, who left the role as reported on Tuesday (July 22). Robert Kyncl said Duque’s leadership will help differentiate ADA by “providing independent labels and artists with opportunities at a speed and scale they won’t find anywhere 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 company that now controls the portfolio formerly known as Hipgnosis Songs Fund, is planning a $372 million issuance of five-year bonds backed by its multi-billion-dollar music catalog. The catalog includes recorded music and/or publishing rights from artists such as the Red Hot Chili Peppers, Journey, Justin Bieber, and Shakira.
According to a report from Kroll Bond Rating Agency, based on a third-party valuation as of March 31, the catalog backing Recognition’s ABS transaction was worth $2.95 billion, inclusive of $340.8 million in additional assets that Recognition added to it. This suggests the portfolio that until recently was known as Hipgnosis Songs Fund was worth $2.61 billion as of the end of March, representing rapid growth since Blackstone acquired it in summer 2024.
The Recognition portfolio consists of around 47,000 master recordings, compositions, and related assets with a weighted average age of around 21 years. KBRA gave the bond issuance a rating of A, noting that streaming revenues continue to represent a positive tailwind to industry growth 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 remarkable growth trajectory, positioning itself as one of the music industry’s most significant independent players. Founded in 2010 and entirely self-funded, ONErpm is on track to hit around $300 million in gross revenue this year, operating in 40+ territories globally with a claimed 2.7% worldwide market share on Spotify.
ONErpm founder Emmanuel Zunz bristles at traditional industry categorizations, stating: “There are no more ‘distribution’ companies, and there are no more ‘record labels’. There are just companies providing solutions to creators.” It’s a philosophy that runs through everything ONErpm does, from basic distribution agreements to full label services deals, catalog acquisition, and joint ventures.
Notably, when asked about the Downtown-Universal deal, Zunz said he responded to the European Commission’s questionnaire by emphasizing there are plenty of alternatives for independent artists and labels in the market… (MBW)
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
