From Believe’s $682M revenue to next big music buyout: That’s MBW’s weekly roundup
Welcome to Music Business Worldwide’s weekly roundup – where we make sure you’ve caught the five biggest stories that have made headlines over the past seven days. MBW’s Roundup is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize revenue and lower touring costs.
Music’s next big acquisition could be just around the corner.
This week, MBW announced that Qanawat Music, which operates as a music distributor in the Middle East and North Africa, is on sale.
Our sources suggest that the asking price for the company is a substantial eight-figure sum and that several major music companies have thrown tires on a potential acquisition.
We are told that Warner Music Group is the current favorite to acquire Qanawat Music from its current owner, mobile technology company Qanawat.
Speaking of big deals in the music business, MBW also announced this week that Tempo Music, the music rights acquisition fund launched by private equity giant Providence, is selling its music catalog.
Our sources tell us that Tempo’s portfolio is said to have an annual NPS (Net Publisher Share, i.e. gross profit) of “over $30 million”. This allowed MBW to make an educated estimate of the catalog’s potential future sale price, and that estimate came in at around $500 million or more.
Elsewhere, Paris-headquartered Believe released its financial results for 2021 yesterday (March 17) – its first full-year results since listing on Paris’ Euronext last summer, where it currently commands a market cap €1.21 billion ($1.43 billion).
Believe increased its revenue by €135.8 million (30.7%) year-on-year, from €441.4 million in 2020 to €577.2 million (682 million dollars) last year.
Also this week, Universal’s Virgin Music secured a global partnership with Australia’s biggest indie band – Mushroom Group – while TikTok confirmed that TuneCore had been chosen as the distribution partner for its new SoundOn service.
Here’s what happened this week.
1) THE TEMPO MUSIC CATALOG IS ON SALE – AND WE EXPECT IT TO WIN OVER $500 MILLION
Tempo Music, the music rights acquisition fund launched by private equity giant Providence, is selling its music catalog.
MBW has been informed by three senior industry sources that the rights portfolio of US-based Tempo is now blocked. A folder containing information on the sale was distributed to potential buyers throughout the company.
Since launching in 2019, Tempo Music has acquired a catalog of rights/revenue streams from stars such as Wiz Khalifa, Twenty One Pilots (via Tyler Joseph), Korn, Florida Georgia Line and hit songwriter/producer Philip Lawrence…
2) NEXT BIG MUSIC BUYOUT WILL BE QANAWAT MUSIC FROM THE MIDDLE EAST, SOURCES TELL MBW
The music industry has seen its fair share of large-scale international acquisitions in recent years, including Sony Music’s $255 million takeover of Brazil’s Som Livre.
MBW originally informed our readers of this Som Livre sale early, in March 2021; Sony Music later confirmed that it had agreed to an acquisition the following month.
On Wednesday March 16, we announced the next major acquisition of an international music company: Qanawat Music, which operates as a music distributor in the Middle East and North Africa.
3) BELIEVE GENERATED $682M ANNUAL REVENUES LAST YEAR, UP 30.7% YEAR
Paris-headquartered Believe released its 2021 financial results yesterday (March 17).
The company says it increased revenue by €135.8m (30.7%) year-on-year, from €441.4m in 2020 to €577.2m. euros ($682 million) last year.
The results mark the company’s first full-year results since its listing on Euronext Paris last summer, where it currently commands a market capitalization of 1.21 billion euros ($1.43 billion).
4) A GLOBAL PARTNERSHIP WITH THE MUSHROOM GROUP OF AUSTRALIA
The Virgin Music Label & Artist Services (VLMAS) division of Universal Music Group has entered into a global partnership with Australia’s largest group of independent labels, Mushroom, to support and distribute the releases of Mushroom artists worldwide, outside Australia and New Zealand.
The Mushroom label division remains 100% independently owned and its established ANZ operations will remain unchanged following the partnership.
Mushroom will continue to distribute digitally in ANZ, as members of Merlin, and will continue its longstanding physical distribution partnership with Universal Music Australia.
5) TIKTOK’S PARTNER FOR ITS NEW SOUNDON DISTRIBUTION SERVICE IS… TUNECORE
TikTok has now confirmed to MBW that Believe-owned digital distribution platform TuneCore has been chosen as the distribution partner for SoundOn.
In short, this means that artists who upload their music to TikTok SoundOn will then see that music distributed to other platforms (Spotify, Apple Music, etc.) via TuneCore.
TuneCore has been the service’s distribution partner, we’re told, since SoundOn quietly launched as a beta in September last year.
MBW’s Weekly Roundup is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximize revenue and lower touring costs.The music industry around the world