From Sony’s $1bn Epic Video games deal to Deezer’s IPO talks: It’s MBW’s Weekly Spherical-Up

Welcome to Music Enterprise Worldwide’s weekly round-up – the place we ensure you caught the 5 largest tales to hit our headlines over the previous seven days. MBW’s round-up is supported by Centtrip, which helps over 500 of the world’s best-selling artists maximise their revenue and cut back their touring prices.

This week, Fortnite maker Epic Video games raised $2 billion from Sony Group Company (Sony Music‘s mum or dad) and KIRKBI, the holding firm behind The LEGO Group.

Epic Video games says this newest settlement offers it a $31.5 billion post-investment fairness valuation.

Sony’s contribution to the funding spherical was $1 billion, that means that its funding has purchased it a further stake value roughly 3.2% of Epic.

Throughout Sony’s three investments in Epic over the previous three years ($250m in 2020; $200m in 2021; $1bn in 2022), the corporate has spent a grand whole of $1.45 billion.

Because of this, immediately Sony owns roughly 5.4% within the interactive leisure agency.

Additionally this week, new knowledge launched in a report from the RIAA reveals that Latin music generated $886.1 million on a retail foundation within the US in 2021.

That $886.1 million haul was up by greater than a 3rd (+35.4%) on Latin music’s revenues within the US within the prior yr.

MBW forecasts that revenues generated by the file music marketplace for Latin artists within the US will high a billion {dollars} throughout the 12 months of 2022.

Elsewhere, music streaming service Deezer is reportedly nearing a deal to go public through a merger with a Paris-based SPAC referred to as I2PO – which has round $325 million in capital at its disposal.

The Wall Avenue Journal stories that Deezer and I2PO are getting near agreeing a deal to take Deezer public.

Plus, Common Music Publishing Group struck an unique international deal to symbolize Elvis Presley’s tune catalog, whereas MBW walked our readers via a mechanical royalty price battle now raging within the US.

Right here’s what occurred this week:

1) Sony is spending $1bn to purchase one other 3% stake in Epic Video games to assist ‘construct the metaverse’

Sony’s relationship with Epic Video games is getting even nearer.

Final yr Sony Group Company – mum or dad firm of Sony Music Group – spent USD $200 million to amass a 0.7% stake within the Fortnite-making (now BandCamp-owning) video games firm.

That funding adopted a heftier stake acquisition in 2020, when Sony spent $250 million to amass fairness in Epic value round 1.5% of its enterprise.

Now some extra huge information: Immediately (April 11), Epic Video games has confirmed that Sony has agreed to spend $1 billion to amass a further stake in its firm….

2) JUDGES IN THE US HAVE HINTED THAT THE MECHANICAL ROYALTY RATE PAID TO PUBLISHERS AND SONGWRITERS FOR VINYL SALES SHOULD RISE. THE MAJOR LABELS’ LAWYERS HAVE COME OUT SWINGING.

It’s a course of awash with legalese – to the purpose of tedium.

However there’s a vital debate occurring within the US over sure forms of mechanical royalty charges paid to songwriters proper now, and you must learn about it.

That’s partly as a result of it’s fairly fascinating stuff, and partly as a result of it prods at some tender areas of the facility stability dominating the trendy music business.

Worry not: You gained’t should wade via all of the paperwork; MBW has accomplished that for you. (So. A lot. Paperwork.)

However belief us, there are some startling nuggets on this story….

3) Latin music is on target to generate over $1 billion within the US in 2022

We’re gonna name this one early: MBW immediately predicts that the file music marketplace for Latin artists in the US will generate greater than a billion {dollars} in income throughout the 12 months of 2022.

We’re feeling assured on this forecast due to new knowledge launched immediately (April 12) in a report from the RIAA, which reveals that Latin music generated $886.1 million on a retail foundation within the US in 2021.

That $886.1 million haul was up by greater than a 3rd (+35.4%) on Latin music’s revenues within the US within the prior yr.

4) SEVEN YEARS AFTER ITS IPO COLLAPSED, DEEZER IS IN TALKS TO TO GO PUBLIC AGAIN – VIA A SPAC

In response to Wall Avenue Journal sources, Deezer is at present nearing a deal to go public through a merger with a Particular Function Acquisition Firm (SPAC).

Who’s that SPAC? They may definitely be acquainted to MBW readers.

Final summer season, we advised you a couple of new Paris-based SPAC – I2PO – which had round $325 million in capital at its disposal, and was backed by the billionaire Pinault household’s holding firm..

5) Common to symbolize Elvis Presley publishing catalog, through international take care of Genuine Manufacturers Group

Common Music Publishing Group (UMPG) has struck an unique international take care of Genuine Manufacturers Group, proprietor of Elvis Presley Enterprises, to symbolize Elvis Presley’s historic tune catalog.

The settlement builds upon Common Music’s present relationship with ABG.

In November 2021, Common Music Group, and ABG inked a strategic initiative to amass and actively handle artist manufacturers…

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