All posts tagged Warner Music Group

Bits & Pieces: More Executive Musical Chairs, EMI Shopping Begins, Warner Music Interest Expands & more…

March 23, 2011

Big four in limbo; all looking for x-factors

While a lot of the industry was immersed in debauchery on Austin’s 6th street last week, the following news broke; Island Def Jam head, Antonio LA Reid, announced his departure from Universal Music Group to take a judge spot on Simon Cowell‘s X-Factor, it’s widely believed that Reid will end up back at Sony Music under former UMG boss Doug Morris (Cowell’s X-Factor also has a deal with Sony)… The following day it was announced by UMG chief Lucian Grainge that newly acquired East Coast exec Barry Weiss would be taking over the reins left by Reid, as new CEO of IDJ and Universal Motown Republic Group… After recently being sold to BMG Rights Management, it was reported that Chrysalis Music founder Chris Wright is in the process of buying back the company’s distribution company Lasgo Chrysalis, a division that has seen a rise in business due in part to the resurgence of vinyl… The NY Post claimed sources who have indicated that Citigroup has begun quietly shopping EMI, and many of the interested parties are also currently bidding on the whole or parts of Warner Music Group… The short-list of suitors for WMG stays much the same, though who is bidding on what pieces seems to be shifting; KKR-backed BMG who originally submitted a low-ball offer for Warner/Chappell is said to now be considering a bid for all of WMG, while reports today claim that there are three specific WMG assets that the joint-venture is interested in. Meanwhile one new bidder has emerged in private-equity and investment firm Tamares, who is also interested in the entire company… Elsewhere, a new report has predicted that within five years, there will be over 161 million subscribers to digital music services… MOG is trying to put together a new investment fund in the range of $25 to $30 million… And Clear Channel is said to be taking a serious look at recently bankrupted music service Playlist.com…

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Antonio LA Reid, BMG, Chrysalis Music, Clear Channel, EMI, Island Def Jam, KKR, MOG, Sony Music, Universal Music Group, Warner Music Group

Monday Roundup: Sean Parker in on Warner Music Bid, NY Times on Big Machine’s Borchetta, Clear Channel Digital Head Leaves & more…

March 14, 2011

Parker Joins Bid for WMG

The latest news coming out of the Warner Music Group sale, is that Napster co-founder, and current Facebook and Spotify investor, Sean Parker is part of a consortium that is planning to make a bid for WMG, a group led by Ron Burkle and Doug Teitelbaum, according to AllThingsD. Burkle’s interest in making a play for the company was recently revealed along with a handful of other leading suitors. Parker’s moves are always of interest to tech and music industry circles, due to his association with such high-profile and influential start ups. Warner is one of two remaining major label groups yet to sign on with Spotify in the U.S. – Universal Music Group being the other… The New York Times profiled Big Machine Records founder Scott Borchetta in a piece over the weekend. Borchetta goes into his early career in Nashville working with his father’s promotion company and various Music City record labels, before starting Big Machine in 2005… On the heels of the recent acquisition of music subscription service Thumbplay by Clear Channel, who is eyeing the online radio space currently dominated by Pandora, the company has announced the departure of its head of digital Evan Harrison… And Superglued, a highly-anticipted location-based Foursquare-like mobile app for concerts, will be unveiled tomorrow during the last day of SXSW Interactive.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Big Machine Records, Clear Channel, Facebook, Napster, Sean Parker, Spotify, Superglued, SXSW, Thumbplay, Universal Music Group, Warner Music Group

Bits & Pieces: Morris Move to Sony Music Top Spot Confirmed, Warner Music Gets Bids, Thumbplay Unloaded & More…

March 2, 2011

Morris takes his talents to Sony

The big news this morning from within the big four music groups (soon to be three?), is the confirmation that outgoing Universal Music Group CEO Doug Morris will indeed take over the reigns as new chief executive at Sony Music on July 1st, as Rolf Schmidt-Holz departs at the end of this month. Sony Corp. chairman Howard Stringer will fill the role in the meantime. Morris held the role of CEO at UMG since 1995, before announcing a successor in Lucian Grainge at the beginning of last year. On the other side of the coin, RCA/Jive label chief Barry Weiss will also leave the building this week, as he takes a top spot in Grainge’s East Coast Universal label operation… Bloomberg reported this week that Warner Music Group, which recently put itself on the block with help from Goldman Sachs, has received ten offers so far including bids on its publishing division Warner/Chappell Music by Sony/ATV Music and KKR-backed BMG Rights Management, while Russian billionaire Len Blavatnik is seeking to acquire most of the company. UMG did not submit an offer, reportedly due to anti-trust concerns – though they may be interested in acquiring parts of the recorded music business… In what could be seen as a preemptive move as Spotify appears to be gearing up for a U.S. launch (including reportedly making hires), Rhapsody is offering a 60 day free trial for its streaming service… Ringtone company Thumbplay, who transitioned into the music subscription arena earlier than most current players, has been bought by Clear Channel. It appears that the new owners of the service intend to transition the service into online radio, utilizing the Thumbplay technology and talent and integrating it into Clear Channel’s current free iheartradio service… Elsewhere, Live Nation California prexy Rick Mueller is reportedly leaving and heading to rival AEG… MTV and Sony/ATV’s Extreme Music are launching Hype Production Music as the result of a new licensing partnership that will focus on emerging and independent artists… And despite continued turmoil in the digital music landscape, investors are once again starting to dump big cash in the chaotic space.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: AEG, Barry Weiss, BMG Rights Management, Clear Channel, Doug Morris, Extreme Music, Howard Stringer, Jive, Live Nation, Lucian Grainge, MTV, RCA, Rhapsody, Sony Music, Sony/ATV, Spotify, Thumbplay, Universal Music Group, Warner Chappell, Warner Music Group

Happening: Warner Music Preparing for Bids, EMI Close Behind & Spotify Back in the $$ Mix

February 22, 2011

BMG RM's Hartwig Masuch; Who will they take first?

It’s being reported the Warner Music Group is preparing to receive offers this week from a list of up to 20 bidders, the latest entry on the list of suitors is Russian businessman Len Blavatnik, who already owns a minority stake in Warner/Chappell Music. The KKR-backed BMG Rights Management venture is expected to be among bidders for WMG’s publishing division, having apparently tapped multiple banks to advise and provide financing. Though the move could also be to prepare bidding for the Citigroup-owned EMI Music, the other major music group currently on the block. Or maybe it’s both… EMI group CEO Roger Faxon continues his media tour, with a piece this week in The Guardian where he explains the pitfalls of splitting up the company’s recording and publishing divisions. Meanwhile, former owner Guy Hands expresses disappointment over losing EMI, his highest profile investment, to Citigroup… Details coming out over the weekend have Spotify getting a large amount of new financing in the range of $100million from Digital Sky Technologies (also backers of Facebook, Groupon and others), which would give the company a new valuation of around $1billion. If it seems like all that new money will just end up going to the labels in the U.S. in order to get off the ground (Spotify now has both Sony Music And EMI onboard), MediaMemo‘s Peter Kafka says think again… And how would the new Apple content subscription service fees hinder music services like Spotify? A cryptic email from Steve Jobs this week has many questioning if Apple is changing its tune on fees applying to music services.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Apple, BMG Rights Management, EMI Music, Guy Hands, KKR, Sony Music, Spotify, Warner Music Group

Bits & Pieces: Warner/Chappell Losing MJ Admin, Sony Backs Off Anti-iTunes talk, Apple Making More Enemies & more…

February 17, 2011

A piece on Showbiz411 yesterday, revealed that Michael Jackson‘s publishing company MiJac Publishing, which is currently administered by Warner/Chappell Music and includes songs such as “Billie Jean” and “Beat It,” among others, will soon be moving to Sony/ATV Publishing. The shift was reportedly written into the contract with WCM, who has administered the catalog for years. It also comes on the heels of the announcement that Warner Music Group is shopping for a sale, most likely of its publishing arm, putting them in direct competition with Citigroup‘s plans for EMI Music. Insiders share that this is one of multiple similar scenarios WCM will face in the coming years… After abundant commentary last week on Sony Music‘s possible intention to abandon iTunes, following a report in an Australian publication, a comment from a Sony Network Entertainment executive indicates that is in fact not the case, saying Sony Music has “no intention of withdrawing from iTunes, they’re one of our biggest partners in the digital domain.” Today also saw the announcement that Sony is launching its “iTunes rival” music service Qriocity in the U.S., though still without a mobile component. Currently Sony is focused on Playstation 3 as the primary vehicle for the music service, though it has plans to move into mobile in the future, and most likely on the Google Android platform first… More Google Music talk arose this week, with a Motorola executive tipping that the service will be included on Google’s new version of Android, Honeycomb, which will be tied to the new Motorola Xoom tablet… Following the details revealed this week by Apple for its new content subscription service, music services are upset over the 30% share for each subscription that goes to Apple, in addition to the fees already being paid to content owners. Among them, Rhapsody, has gone as far floating the possibility of legal action… Elsewhere, Topspin has announced a move into offering their direct-to-fan platform for all users… Through a sponsorship effort, Converse has saved the legendary punk enclave the 100 Club in London from closing… And this Death of the Music Industry chart, is getting lots of attention.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Android, Apple, Converse, EMI Music, Google, iTunes, Michael Jackson, Qriocity, Rhapsody, Sony Music, Sony/ATV, Topspin, Warner Chappell, Warner Music Group

More EMI & WMG: Hands Won’t Give Up & Warner Racing to the Block

February 11, 2011

In his first public appearance since the turnover of EMI Music to Citigroup, Terra Firma‘s Guy Hands said he is considering buying EMI, according to a report in Bloomberg, but that it is a “question of price,” adding, “They are going to auction it, and we will see if they can get more for it than we offered.” Addressing the split of EMI’s two divisions, Hands declared, “You’ve really got to keep the two together so that you have the stability of publishing’s earnings versus the volatility of the recorded music division.” Following the bank’s takeover of the music company, much of the publicity has shifted to EMI CEO Roger Faxon, and his rumored stealth efforts to save the label, being credited with leading a behind the scenes effort without Hands’ knowledge. Others in the know share that the spin has been well orchestrated leading up to Citi taking control, to keep Faxon’s place at the table moving forward… Meanwhile, the New York Post reports that Warner Music Group is trying to beat Citigroup to the finish line, hoping to get a sale in place before EMI. Particularly in light of the presumed interest in selling off its publishing division Warner/Chappell before EMI Publishing, as it would be hard pressed to compete. Interested bidders named include Zomba founder Clive Calder, Russian investor Leonard Blavatnik, Universal Music, Sony Music, KKR and music publishing giant Imagem. While whether or not WMG backers Thomas H. Lee Partners, Bain Capital and Providence Equity Partners are looking to cash out or just unload WC is unclear, the article claims CEO Edgar Bronfman Jr. is anything but ready to get out of the music business.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Citigroup, Edgar Bronfman Jr, EMI, Guy Hands, Roger Faxon, Warner Chappell, Warner Music Group

Warner Music Group’s Poor Holiday Earnings; CEO Talks Publishing Division

February 9, 2011

Warner Music Group‘s Q4 earnings call this week revealed more dismal news, with revenue falling 14% to $789 million for the quarter that included the holiday season. Comments from the call published by Music Week, also had CEO Edgar Bronfman Jr. avoiding any speculation about whether WMG is intent on selling off Warner/Chappell Music, though he indicated confidence in the value of the publishing arm. “I think it is a very valuable company and I am very optimistic about its future,” also saying, “I am also very pleased with the acquisitions that we have made both production music point of view and an A&R standpoint and I see there is a lot of progress ahead of us as we go forward.” The talk of a Warner/Chappell sale coincides with WMG’s place on the short list to acquire all or part of EMI Music, and comes after the recent appointment of Cameron Strang as CEO of the pubco and the exit of prexy Scott Francis. Bronfman expressed that he “will let the market decide how to value” the bunny’s publishing division, but insiders point to a catalog that consists of a number of very high-earning compositions that are up for reversion within the coming years, a time that has long been spoken of within the building. What effects it will carry in the market’s valuation of the publisher’s holdings remain to be seen, particularly in the wake of a highly-inflated publishing market in recent years… Stay tuned.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: EMI Music, Warner Music Group, Warner/Chappell Music

Spotify Talk Stupefies

February 9, 2011

#1 source of label revenue in Sweden & Norway

Contrasting speculation continues around Spotify and when the start up will launch in the U.S. as well as whether or not the income it could create would even mean anything significant for artists or labels. Recent reports have anonymous label executives calling the revenue they create “Microscopic,” “Laughable,” And “Pathetic”, while others proclaim the service is now the “second largest source of revenue in Europe for labels”. For what that’s worth. And questions continue to be raised over how the service pays artists, particularly indie acts… Only an actual launch in the U.S. would tell the full story. Where do things sit with such a launch? Sony Music has signed on, and EMI is supposedly “close” – but they have been for weeks, and there’s larger entanglements there with the state of limbo the label is in under the temporary ownership of Citigroup. Warner Music Group CEO Edgar Bronfman Jr. has changed his tune slightly, stating on yesterday’s WMG earnings call “We do see Spotify, and services like Spotify, as ever-more meaningful for our results.” Meanwhile Universal Music Group remains the big prize for the start up getting off the ground in the states. If a letter sent to the current few U.S. users of the service and a job opening in an unnamed U.S. location, are any indication, Spotify will soon be landing here. Or maybe not. As aptly put by @evolverfm “Spotify in the U.S. is the new Beatles on iTunes.”

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Edgar Bronfman Jr, EMI, Sony, Spotify, Universal Music Group, Warner Music Group

More Bits & Pieces: Rdio Taps WBR Chief Rob Cavallo, AEG Launching Ticketing Venture & more…

February 3, 2011

Rdio taps WBR's Cavallo

Music-streaming start up Rdio has raised $17.5million in new funding with a round led by Mangrove Partners. The company, founded by Janus Friis and Niklas Zennstrom of Skype notoriety, also announced the addition of Warner Bros. Records chief Rob Cavallo to its board of directors. The addition of Cavallo is said to be an effort to “strengthen” relationships with the music industry. Rdio currently offers a two-tiered paid subscription service, which fits in with Warner Music Group ruler Edgar Bronfman Jr.’s stance on services offering free levels of access, as in they “will not be licensed” by WMG… Yesterday’s News Corp. earnings call has led to more reports of an impending sale of MySpace. Company executives are not really saying anything new from what’s already been reported over the previous weeks, this time it is just more official… Anschutz Entertainment Group has announced a new joint venture called Outbox Enterprises, which sees the promoter entering the ticketing arena. As a result of the regulatory judgement in the Live Nation merger with Ticketmaster, AEG is allowed to compete for ticket sales. The new venture will be headed by former Ticketmaster executive Fred Rosen who will act as CEO. The company plans on beginning to sell tickets through Outbox in the next six to twelve months… Elsewhere, Inc.com checks in the eMusic after last years customer kerfuffle over the addition of more major label catalogues to the once indie-only music service, as well increased prices and the departure of indie stalwart labels Domino, Merge and Beggars Group… And The Fader Fort, a staple of the SXSW music festival for the last decade, has announced a new sponsor this year in Fiat. They’ll also be streaming live performances in conjunction with, err, MySpace Music?

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: AEG, eMusic, Fader Fort, Live Nation, myspace, News Corp, Rdio, Rob Cavallo, SXSW, Ticketmaster, Warner Bros. Records, Warner Music Group

Wednesday Bits & Pieces: Who’s Launching First – Spotify, Google, Apple or None of the Above?

February 2, 2011

Who will get out of the gate first?

In another 2011 industry horse race, contradictory reports and speculation continue to surface about the launch of digital streaming music services from high profile companies like Google, Spotify and Apple. Sony Music recently inked a deal with Spotify, becoming the first U.S. label to do so. And that was quickly followed by rumors of a U.S. deal with EMI being closed in on, however the effects on such a deal by the label takeover this week by Citigroup are yet to be known, but it’s likely not good for the European start up. Even if an agreement was reached, would it be valid when new ownership takes over? Regardless of an EMI deal, or even Warner Music Group, the biggest target for Spotify to get the service off the ground in America is still Universal Music Group, who boasts the largest market share and a significant stable of current hit artists. What will it take to land the other majors? Lots of cash, and most likely a number of concessions in the area of how much free music it offers… Meanwhile, Google has plenty of cash, and reports continue to indicate that it has no problem plunking it down for labels to launch Google Music. While rumored timelines for a launch continue to contract and expand, a possible major stumbling block for Google, and other services in the same cloud, is music publishers. Matt Rosoff wrote a piece this week citing a source that claims publishers want to be paid for every download. Meaning that the key aspect of the locker-based service would conceivably force users to pay multiple times for the same song when downloading at different locations and on multiple devices. Something consumers will surely scoff at… The end of last year saw plenty of anticipation and predictions about a streaming service from Apple, however the talked has quieted this year as the company remains mum. However recent comments from Spotify executives have accused Apple of putting pressure on labels in an effort to keep the service from launching in the U.S., presumably to give themselves more time to finish working on a yet-to-be confirmed streaming version of iTunes. Not unheard of when considering the continued pressure it puts on artists and labels who do business with Amazon… Stay tuned.

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Apple, EMI Music, Google, iTunes, Sony Music, Spotify, Warner Music Group

More EMI: Warner and KKR Still Leading the Pack? Could Guy Hands Still Be in the Mix?

February 2, 2011

Bidding starts at...

The announcement of Citigroup taking over EMI yesterday hasn’t changed the variety of sale scenarios being floated, but has certainly intensified speculation. A myriad of potential regulatory issues remain at the forefront of all conversation, but the smart money continues to be on either Warner Music Group or KKR-backed BMG making bids for either parts or the whole. Other subplots include KKR buying both the recorded music and publishing arms, only to sell off one at a later date. Comments published by Music Week from a former member of EMI senior management indicate that KKR is the frontrunner, who has had an eye on the publishing division for years, adding that the private equity group has “the firepower and it is obvious and clean. Although I think other private equity will obviously be interested.” Who else might be interested? The field could still include other major label groups Sony Music and Universal Music Group, while in the more unlikely column are companies like Apple and Google. Even Guy Hands could still be in the running to take back the music company, though he would likely scratch, as The Guardian points out, the odds are against a bank financing Hands after the first go-around. Meanwhile the New York Post reports that Hands was desperately trying to raise funds up to the last minute from investors including Simon Cowell‘s brother. Others are wondering why the early turnover to Citi? Has the bank already lined up a buyer?

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: BMG, Citigroup, EMI, Guy Hands, KKR, Sony Music, Universal Music Group, Warner Music Group

Analysts Comment on Warner Music Options

January 25, 2011

Weighs In

Fitch Ratings released the following observations today about possible scenarios and options for Warner Music Group… 1) Acquisition of EMI; 2) Sale of WMG Music Publishing; 3) Sale of 50% or more of WMG; or 4) Sale of less than 50% of WMG with an acquisition of EMI… Read the full release here. Meanwhile, further comments from other analysts reported by Reuters lend credence to the speculation that the play by Warner is all about speeding up and putting pressure on an impending EMI auction. “We believe there is a low likelihood of anyone stepping in to buy Warner Music ahead of the EMI auction that is looming later this year,” said Richard Greenfield, an analyst at BTIG, while Wells Fargo bond analyst Bishop Cheen adds, ”All roads go through EMI on this one,” … “I suppose KKR could make a move exclusive of EMI but it’s unlikely.”

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: EMI Music, Warner Music Group

Monday Scuttlebutt: EMI Countdown, Hands in the Cookie Jar & KKR’s BMG Wants It All

January 10, 2011

Handing over to Citigroup?

Less than a month ago, reports were indicating that a deal might see EMI change hands from Terra Firma to lender Citigroup before Christmas, a result of negotiations following Guy Hands courtroom defeat – seen by most as a last ditch effort to maintain control of the music company. Still yet to happen, reports over the weekend are indicating that it may only be a matter of weeks before Hands relinquishes control of EMI to Citi, who is rumored to already be lining up potential suitors for both the recorded music and publishing divisions. In what some see as further corroboration is the disclosure of a £12m dividend taken by Hands last year, which is an amount five times the company’s after-tax profits, though also less than a quarter of the personal funds he told the New York court he had put into EMI… Who is the most likely to bid on EMI if Citi takes control? The Guardian reports that just last Friday it was being heavily rumored that the recorded music arm would be quickly sold by Citi to Warner Music Group, while the publishing would be acquired by KKR‘s BMG Rights Management. Though further reports this morning reveal that BMG RM could be interested in both arms of EMI, but not the production or distribution sides. If so, this could create a scenario that harkens back to talks held by EMI with rivals Sony and Universal last year, exploring the option of raising funds by licensing its catalogue for distribution. Depending on how it goes down, everyone could be in on this, one way or another…

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: BMG Rights Management, Citigroup, EMI, Guy Hands, Sony, Terra Firma, Universal, Warner Music Group

Friday Bits & Pieces: Music Startups Hot at CES, Sony’s Music Unlimited & more…

January 7, 2011

Music services hot at CES

It’s 2011 and streaming music continues to be a hot topic. Spotify is still getting headlines, but questions now surround not when the service will be launching in the U.S., but if it will ever see life in the states. It appears that labels are continuing to ask for extremely high upfront payments from the startup, due to uncertainty in results from the service’s model. Spotify is betting on a high rate of conversion from free to paid accounts, while content owners remain skeptical. If the company doesn’t go public, is the answer to be acquired, and should Amazon be that buyer?… While the clock ticks on Spotify, not to mention Google Music and a streaming service from Apple, lower profile services that have already launched continue to made progress in the new digital music arena, with a number of key announcements coming out of this weeks Consumer Electronics Show in Las Vegas. MOG will be coming preinstalled on Verizon‘s new 4G LTE phones, as well as being included in Toyota connected cars, along with Pandora… Slacker also announced new changes to its service this week, including a new on-demand subscription tier, that sees a third level of access for users, adding to the non-interactive internet radio service it already provides… Meanwhile Sony took the stage at CES to announced the launch of its new Music Unlimited service in America in the coming months. Already live in the UK, the service will be available to users via Bravia TVs, Blu-ray players, Vaio PCs and PlayStation 3 consoles… Elsewhere, in expected news, Lucian Grainge, who officially assumes his CEO seat at Universal Music Group, announced contract renewals for Universal/Republic rulers Monte and Avery Lipman this week – also re-upped with UMG was SRC Records founder and CEO Steve Rifkind… S&P Equity Research adds credence to the talk of a likely Warner Music Group acquisition of EMI, as they make their 2011 media predictions, stating [WMG] could finally be poised to make a successful bid for the recorded music operations of EMI Group… And sales data for music in 2010 comes in with news of continued decline for both physical and digital albums, while single tracks all but flatlined. Last year saw a 12.8% decline from the 2009 level in album sales, while single song sales were up by 1%. More stats including 2010 highest sellers are here…

Comments: 0 Posted by: RM 64 Categories: Uncategorized Tags: Amazon, Apple, CES, EMI, Google Music, Lucian Grainge, MOG, Music Unlimited, Slacker, Sony, Spotify, SRC Records, Universal Music Group, Universal Republic, Warner Music Group