Welcome to Music Business Worldwide’s weekly round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s 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.
A corporate saga gripping the music business in South Korea entered its latest phase this week, as music giant HYBE officially ended its attempt to take over its rival, SM Entertainment.
The K-pop company said in a statement that it was suspending its acquisition bid, for a 40% stake in SM, following a discussion with tech firm Kakao – its rival bidder in the SM takeover process.
On Sunday (March 12), HYBE officially pulled out of the battle for control of SM, issuing a statement that reads: “HYBE made this decision after observing that the market has been showing signs of overheating due to competition with both Kakao and Kakao Entertainment.”
Elsewhere, SM Entertainment revealed, via an investor presentation setting out its global expansion and investor strategy, that it plans to acquire a music company in the US to speed up its global expansion.
SM says it is currently “reviewing companies appropriate for SM’s genre spectrum” in the US and is looking to expand into hip-hop and R&B.
Meanwhile, Paris-headquartered music company, and TuneCore owner, Believe, published its full-year financial results for 2022 (its second set of full-year results since floating on the Paris Euronext in 2021). The company generated annual revenues of €760.8 million (USD $800m).
Plus, Midia Research estimated that global recorded music revenues grew 6.7% YoY in 2022 to reach $31.2 billion, while SESAC Music Group acquired content management, analytics, delivery and distribution tech provider AudioSalad.
HYBE, the South Korea-headquartered music giant, has officially ceased its attempt to acquire a 40% stake in rival K-pop company, SM Entertainment.
HYBE said in a statement on Sunday (March 12) that it was suspending its acquisition bid following a discussion with tech firm Kakao – its rival bidder in the SM takeover process.
HYBE last month acquired a 14.8% stake in SM Entertainment, for around USD $335 million, via the acquisition of shares from Lee Soo-man, SM Entertainment’s estranged founder.
HYBE subsequently made its intention public to acquire an additional 25.2% of SM Entertainment’s shares – which would have taken HYBE’s total shareholding up to 40% – via a tender offer to SM’s minority shareholders.
If successful, the move would have seen HYBE spend another ≈$565 million on SM shares…
SM Entertainment has revealed, via an investor presentation, that it plans to acquire a music company in the US to speed up its global expansion.
SM says it is currently “reviewing companies appropriate for SM’s genre spectrum” in the US and is looking to expand into hip-hop and R&B.
The company says that it plans to spend 200 billion South Korea Won on this investment strategy, which converts at current exchange rates to around USD $150 million.
That could mean a few things, for example, that SM is willing to spend up to $150 million on one company, or it could be planning to spread out that investment allocation amongst those three to five companies under review.
Either way, this news will undoubtedly fire up the music industry rumor mill about who SM’s acquisition target, or targets, could be…
Paris-headquartered music company Believe generated annual revenues of €760.8 million in 2022.
That revenue figure converts to USD $800 million (at average annual exchange rates as per the IRS).
The company’s full-year financial results (its second set of full-year results since floating on the Paris Euronext in 2021) were published on Wednesday, (March 15)…
SESAC, the Nashville-headquartered music licensing/collection society, has acquired New York-based content management, analytics, delivery and distribution tech provider AudioSalad.
AudioSalad will remain headquartered in New York under the leadership of CEO Iain Catling and CTO Deane Thomas and will continue to function as a standalone business within the SESAC Music Group.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.