MBW’s Stat Of The Week is a collection by which we present why a single knowledge level deserves the eye of the worldwide music trade. Stat Of the Week is supported by Cinq Music Group, a technology-driven file label, distribution, and rights administration firm.
Few might argue towards the truth that when Merck Mercuriadis floated Hipgnosis Songs Fund on the London Stock Trade in summer time 2018, it modified the face of the music enterprise.
That IPO noticed Mercuriadis increase over £200m (approx $265m) through share points earlier than Hipgnosis began buying and selling on the LSE. That cash set Mercuriadis and Hipgnosis on their technique to changing into essentially the most steadily acquisitive firm within the fashionable trade.
Though Hipgnosis’s blistering development since then has lately attracted one or two skeptics within the monetary world, its early buyers can be completely satisfied bunnies: Since that flotation in June 2018, the corporate’s share price (to January 15, 2021) has elevated by over 16%… regardless of the small matter of a worldwide pandemic.
Now, Music Enterprise Worldwide can reveal that one other music trade determine is plotting a significant flotation of a brand new rights firm. It’s taking place within the US, and is borrowing a number of of the hallmarks of Hipgnosis’s story.
Neil Jacobson was the long-time President of Geffen Data in Los Angeles, earlier than exiting the UMG label in 2019 and establishing his personal songwriter/producer administration agency.
That agency, now generally known as Hallwood Media, has been on the forefront of some notable rights acquisitions tales over the previous two years. One such story noticed Hallwood consumer Jeff Bhasker – producer to Kanye West and others – promote his producer points and his music catalog. (Bhasker’s producer royalties and the author’s share of his publishing catalog went to Hipgnosis in 2019; Jacobson lately confirmed to Rolling Stone that he additionally struck an earlier deal that noticed Morgan Stanley purchase a basket of Bhasker’s rights for a rumored $60-plus million.)
MBW has now obtained a SPAC S-1 prospectus for Jacobson’s new firm – The Music Acquisition Company – which explains how the exec is planning to boost $200 million (probably as much as $230 million, relying on demand) through an imminent IPO on the New York Stock Trade.
Within the US, a SPAC (Particular Objective Acquisition Firm) is an entity fashioned to boost capital through an IPO which plans to make use of the proceeds to purchase unspecified companies/property after the flotation.
In different phrases, if Jacobson pulls it off, it would internet him and his workforce a nine-figure sum to buy groceries… and so they need to buy groceries within the music enterprise.
Ebook-runners for the possible IPO have been named as Citigroup and Cantor Fitzgerald.
MBW’s Stat Of The Week: Ex-Geffen President, Neil Jacobson, is elevating $200 million through the difficulty of 20,000,000 items for $10 apiece in The Music Acquisition Company. Every unit will include one share of Class A standard stock – plus one-half of 1 redeemable warrant.
What’s The Music Acquisition Company going to spend this loot on? Music copyrights? Virtually positively – however this isn’t only a Hipgnosis copycat.
The S-1 submitting explains that the agency has highlighted 4 separate faculties of acquisition goal, with all of sitting betwixt the crossroads of music and tech.
The prospectus – which you’ll learn in full by right here – breaks these goal areas down as follows:
- Audio Content material: “We plan to explore potential target companies serving content creators, IP owners and consumers by unlocking new opportunities for content discovery and monetization. Our depth and breadth of relationships across the entire audio industry, including recorded music labels and music publishers, streaming platforms, podcasting platforms, voice platforms, agencies and other emerging platforms, position us to uniquely source and evaluate opportunities for potential targets in this sector.”
- Know-how: “The dramatic advancements in the music industry are largely driven by pioneering technology companies… Select verticals of interest include royalty free sample libraries (for production music), music catalog analysis and organization tools, data science and trend research companies, blockchain and other AI-driven platforms.”
- Social: “Platforms such as TikTok and Triller have provided new life to music, while their survival symbiotically depends on that of the music industry… We can offer a unique value-add to companies including but not limited to social media networking apps, social content platforms and online video sharing platforms.”
- Shopper: “Brands that have been able to adapt and adopt music as a key driver, both in consumer experience and partnerships, have found significant success in recent years. Examples include Beats by Dre and Peloton. We believe we can provide immediate value to any consumer-facing company with proprietary access to top-level music and artists, resources and connections within the industry and an ability to navigate, contact and execute music licenses.”
With Jacobson as CEO and Chairman of The Music Acquisition Company, the SPAC’s management additionally contains ex-Lehman Brothers and Barclays Capital veteran Todd Lowen as COO.
Along with Jacobson and Lowen, The Music Acquisition Company’s Administrators are named as Michael Levitt, Ben Silverman and Tunde Balogun.
Levitt has been the Chief Government Officer of Kayne Anderson Capital Advisors since July 2016. Silverman is an entrepreneur and film/TV producer who has served because the Chairman and Co-Chief Government Officer of Propagate Content material since 2016.
Balogun can be finest recognized in music trade circles. He’s President and co-founder of LVRN, the US-based file label, music publishing, and artist administration firm whose signings embody artists equivalent to 6lack, Summer time Walker, and Dram.
The Music Acquisition Company prospectus reads: “The music trade is very fragmented with lots of of content material house owners and creators, publishing and distribution platforms and different firms offering enabling applied sciences and companies to different trade individuals and customers, a lot of that are privately owned. We imagine that the expertise and capabilities of our administration workforce will make us a pretty associate to potential goal companies, improve our potential to finish a profitable enterprise mixture, and produce value to the goal post-business mixture.
“We believe that our management team’s extensive experience acquiring, operating and growing businesses in the music sector, coupled with their vast network of leading industry executives, entrepreneurs, investors and deal makers, will provide access to attractive business combination opportunities and position us to succeed in consummating an initial business combination.”
It reveals that the corporate intends to drift on the NYSE underneath the ticker TMAC.U.
“We anticipate that our items can be listed on the NYSE on or promptly 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 quite a few No.1 chart positions on a wide range of Billboard charts. Its repertoire contains heavyweights equivalent to Dangerous Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and lots of extra.Music Enterprise Worldwide