MBW’s Stat Of The Week is a collection in which we present why a one information place warrants the attention of the international music field. Stat Of the 7 days is supported by Cinq Tunes Group, a technologies-driven report label, distribution, and rights management firm.
Handful of could argue against the simple fact that when Merck Mercuriadis floated Hipgnosis Tracks Fund on the London Stock Trade in summertime 2018, it adjusted the facial area of the songs enterprise.
That IPO saw Mercuriadis elevate in excess of £200m (approx $265m) through share issues right before Hipgnosis started out investing on the LSE. That money set Mercuriadis and Hipgnosis on their way to becoming the most commonly acquisitive firm in the modern day market.
Although Hipgnosis’s blistering growth since then has recently attracted a single or two skeptics in the fiscal entire world, its early traders will be delighted bunnies: Due to the fact that flotation in June 2018, the company’s share value (to January 15, 2021) has elevated by in excess of 16%… regardless of the small matter of a world wide pandemic.
Now, Music Business Throughout the world can expose that a further songs industry determine is plotting a major flotation of a new legal rights company. It is going on in the US, and is borrowing a couple of of the hallmarks of Hipgnosis’s story.
Neil Jacobson was the long-time President of Geffen Information in Los Angeles, before exiting the UMG label in 2019 and setting up his individual songwriter/producer management company.
That company, now recognized as Hallwood Media, has been at the forefront of some notable legal rights acquisitions tales around the earlier two yrs. One such tale saw Hallwood client Jeff Bhasker – producer to Kanye West and others – sell his producer factors and his tunes catalog. (Bhasker’s producer royalties and the writer’s share of his publishing catalog went to Hipgnosis in 2019 Jacobson not long ago verified to Rolling Stone that he also struck an before offer that noticed Morgan Stanley receive a basket of Bhasker’s legal rights for a rumored $60-furthermore million.)
MBW has now received a SPAC S-1 prospectus for Jacobson’s new firm – The Music Acquisition Corporation – which explains how the exec is planning to elevate $200 million (probably up to $230 million, relying on need) through an imminent IPO on the New York Inventory Trade.
In the US, a SPAC (Special Reason Acquisition Enterprise) is an entity shaped to elevate funds by means of an IPO which programs to use the proceeds to obtain unspecified corporations/property following the flotation.
In other terms, if Jacobson pulls it off, it will internet him and his staff a 9-figure sum to go shopping… and they want to go purchasing in the audio business.
Guide-runners for the prospective IPO have been named as Citigroup and Cantor Fitzgerald.
MBW’s Stat Of The 7 days: Ex-Geffen President, Neil Jacobson, is elevating $200 million by way of the situation of 20,000,000 models for $10 apiece in The New music Acquisition Corporation. Every unit will consist of one share of Course A popular inventory – additionally one particular-50 % of 1 redeemable warrant.
What’s The Songs Acquisition Corporation likely to invest this loot on? Tunes copyrights? Nearly surely – but this isn’t just a Hipgnosis copycat.
The S-1 filing clarifies that the organization has highlighted 4 independent schools of acquisition goal, with all of sitting betwixt the crossroads of audio and tech.
The prospectus – which you can examine in complete by listed here – breaks these concentrate on places down as follows:
- Audio Material: “We system to discover potential goal companies serving content material creators, IP homeowners and shoppers by unlocking new options for content material discovery and monetization. Our depth and breadth of relationships throughout the full audio field, which includes recorded new music labels and music publishers, streaming platforms, podcasting platforms, voice platforms, organizations and other emerging platforms, place us to uniquely supply and appraise prospects for prospective targets in this sector.”
- Technological know-how: “The spectacular developments in the songs sector are mostly driven by pioneering technological know-how companies… Pick verticals of desire include things like royalty cost-free sample libraries (for output audio), new music catalog assessment and business instruments, info science and trend study providers, blockchain and other AI-pushed platforms.”
- Social: “Platforms such as TikTok and Triller have provided new lifestyle to songs, while their survival symbiotically relies upon on that of the new music industry… We can supply a one of a kind worth-add to organizations which includes but not limited to social media networking applications, social material platforms and on-line video sharing platforms.”
- Buyer: “Brands that have been in a position to adapt and undertake new music as a key driver, equally in consumer practical experience and partnerships, have observed significant good results in latest a long time. Examples include Beats by Dre and Peloton. We believe that we can supply rapid price to any shopper-facing enterprise with proprietary obtain to top rated-amount audio and artists, resources and connections in the marketplace and an potential to navigate, call and execute audio licenses.”
With Jacobson as CEO and Chairman of The Audio Acquisition Corporation, the SPAC’s leadership also incorporates ex-Lehman Brothers and Barclays Capital veteran Todd Lowen as COO.
In addition to Jacobson and Lowen, The Songs Acquisition Corporation’s Administrators are named as Michael Levitt, Ben Silverman and Tunde Balogun.
Levitt has been the Main Govt Officer of Kayne Anderson Cash Advisors considering that July 2016. Silverman is an entrepreneur and movie/Tv set producer who has served as the Chairman and Co-Main Government Officer of Propagate Content due to the fact 2016.
Balogun will be greatest known in tunes market circles. He is President and co-founder of LVRN, the US-primarily based record label, tunes publishing, and artist administration firm whose signings contain artists this sort of as 6absence, Summer Walker, and Dram.
The New music Acquisition Company prospectus reads: “The new music sector is remarkably fragmented with hundreds of material house owners and creators, publishing and distribution platforms and other organizations supplying enabling systems and providers to other field members and shoppers, lots of of which are privately owned. We consider that the practical experience and capabilities of our management group will make us an appealing spouse to likely goal organizations, enrich our ability to complete a profitable enterprise blend, and carry worth to the focus on article-company mix.
“We feel that our management team’s in depth working experience getting, functioning and increasing firms in the music sector, coupled with their large community of foremost sector executives, business people, buyers and offer makers, will supply accessibility to interesting organization mix options and place us to realize success in consummating an original business combination.”
It reveals that the corporation intends to float on the NYSE below the ticker TMAC.U.
“We be expecting that our units will be mentioned on the NYSE on or instantly just after the date of this prospectus,” it reads.
The prospectus is dated January 15, 2021.
Cinq Music Group’s repertoire has received Grammy awards, dozens of Gold and Platinum RIAA certifications, and several No.1 chart positions on a selection of Billboard charts. Its repertoire includes heavyweights this sort of as Terrible Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and hundreds more.New music Company Around the world