"AUDIO SECTOR REPORT "Good Times. These Are The Good Times" - "Recap of Q1 2021 - GCA Advisors
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“AUDIO SECTOR REPORT “Good Times. These Are The Good Times” – “Recap of Q1 2021
EXECUTIVE SUMMARY
Q1 2021 Audio Sector Wrap-Up
» The activity across the audio sector in Q1 2021 continues to reinforce our view of the two powerful and fundamental investment themes in the
category: we are at the start of a 10+ year investment cycle in music, broadly; and, the re-platforming of the industry to the digital tier that is well
underway will introduce greater monetization opportunities on a truly global scale for creators, artists, fans, indie labels, majors, and investors
» The quarter’s M&A activity has been robust and across all categories in the music landscape, from creator tools to DSPs to indie publishers
and technology companies, highlighted by:
― Square’s acquisition of Tidal (DSP, artist economy)
― Sony’s acquisition of AWAL (distribution)
― Francisco Partners’ investment in and acquisition of Native Instruments and Izotope in the same quarter (creator tools)
― Spotify’s acquisition of Locker Room (artist economy)
» Not to be outdone by M&A, the pace of financing and investment in the category has continued unabated with strategics and financial
sponsors making some very big bets:
― Apple’s $50MM investment in UnitedMasters (distribution)
― TME’s $57MM investment in PEX (technology)
― Blackstone’s $450MM investment in Epidemic Sound (distribution)
― Goldman Sachs’s $55MM investment in Splice (creator tools)
» And “the song as an asset class” theme that we have also been tracking for some time has continued to see momentum, the highlight of the
quarter being KKR’s announced partnership with BMG to pursue acquisition of music copyrights. The heavy-hitters are in the arena and the
competition is only elevating, but the investment conviction underscores the tremendous opportunity and belief that the TAM in the industry
is expanding quickly and that technology is unlocking greater monetization opportunities than ever before
» And then there is the NFT – a relatively new entrant – making a lot of noise this quarter. We are extremely excited about this development
and believe in many ways that it is a perfect solution for artists and rights holders to monetize rights and engage passionate fans with
collectable, unique tokens created around songs or recordings. More to come!
Select Q1 Active Acquirers Select Q1 Active Investors
2
TABLE OF CONTENTS
I. GCA Overview
II. Digital Music Trends and Insights
III. Public Markets
IV. M&A and Financings
V. Public Comps Backup
3
GCA OVERVIEW
GCA’s Dedicated Sector Knowledge and Execution Excellence
GCA Music Focus GCA’s Global Music Leadership Team
STREAMING PUBLISHING
JOHN LAMBROS SASCHA PFEIFFER
Member of the Board, Member of the Board,
President, GCA US Co-Head, Europe
RIGHTS jlambros@gcaglobal.com sascha.pfeiffer@gcaaltium.com
DISTRIBUTION
MANAGEMENT
SAMEER JINDAL JONATHAN NORMAN
ENGAGEMENT Managing Director, Managing Director,
ARTIST SERVICES
TOOLS Head, India Digital Media
sjindal@gcaglobal.com jonathan.norman@gcaglobal.com
AI TOOLS & VIDEO &
ANALYTICS CREATIVE
DAVID FEGLEY MALTE ABRAMS
Vice President Director
dfegley@gcaglobal.com malte.abrams@gcaaltium.com
PROMOTIONAL LIVE EVENT
SERVICES MANAGEMENT
GCA Overview
25 >500 500+ 245 80%
OFFICES AROUND M&A TRANSACTIONS IN PE DEALS IN THE REPEAT OR
THE WORLD PROFESSIONALS LAST 3 YEARS LAST 3 YEARS REFERRED CLIENTS
Notes:
The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Advisors Corporation and GCA Altium have advised on. 4GCA OVERVIEW
Leading Global Investment Bank Providing Strategic M&A and Capital Markets Advisory Services
STOCKHOLM
MANCHESTER LEEDS
PARIS FRANKFURT
BIRMINGHAM MUNICH
KYOTO NAGOYA
ZURICH TOKYO
LONDON SHANGHAI
NEW YORK LAUSANNE
MILAN
NEW DELHI OSAKA
TEL AVIV FUKUOKA
SAN FRANCISCO
TAIPEI
MUMBAI
SINGAPORE HO CHI MINH CITY
Global platform:
Sector expertise: Exceptional cross-
25 offices in key Experienced team:
Expansive coverage border capabilities:
markets across Over 500 employees
and deep Half of all
America, Asia and across the globe
specialization transactions
Europe
Broad spectrum
Diversified
Strong reputation of clients:
business model:
and track record: Leading
Geographically
High number of conglomerates, top
balanced, synergistic
repeat clients and private equity firms
and complementary
referrals and emerging high-
focus areas
growth companies
San Francisco | New York | Birmingham | Frankfurt | Fukuoka | Ho Chi Minh City | Kyoto | Lausanne | Leeds | London | Manchester | Milan | Mumbai |
Munich | Nagoya | New Delhi | Osaka | Paris | Shanghai | Singapore | Stockhom | Taipei | Tel Aviv | Tokyo | Zurich 5GCA OVERVIEW
Case Study: Native Instruments’ Sale to Francisco Partners
GCA acted as exclusive financial advisor to EMH Partners on the sale of a
majority stake in Native Instruments, the leading vendor of software and
software-enabled hardware for digital audio production, to Francisco Partners
SITUATION SOLUTION
» Native Instruments is the global leader in digital music » GCA generated strong process momentum by
creation software and hardware, with more than 1.5 introducing several very eager bidders early, of which
TRANSACTION DATE million active users Francisco Partners emerged as the most motivated
Pending » Native Instruments was founded in 1996 in Berlin and » Navigated the process through COVID environment with
January 2021 employs more than 400 employees worldwide, operating video conference meetings between the parties
in seven global offices
DEAL TYPE » Drew in parties that had actively followed the Company
M&A » In 2017, EMH Partners invested $60MM in Native in the past to increase number of process participants –
Instruments, followed by a further investment in 2020 to even during the lockdown
SECTOR achieve majority ownership in the Company
» Received multiple proposals from PE with different
Digital Media, Music, » With Francisco Partners, Native Instruments is planning to transaction structures and assisted the Company and
Software, Technology further enhance its product leadership, drive board in evaluating and optimizing the various options
consolidation in the growing and fragmented market for
» Drove price and certainty through closure
digital music creation, and extend its already leading
position in the industry
6TABLE OF CONTENTS
I. GCA Overview
II. Digital Music Trends and Insights
III. Public Markets
IV. M&A and Financings
V. Public Comps Backup
7DIGITAL MUSIC TRENDS AND INSIGHTS
Q1 2021 Music Sector Wrap-Up – Key Subsegment Trends We’re Tracking
1 2 3
Technology underpins the future “The hardest working Major in the Rapid globalization of streaming
of music sharing and monetization music industry”– WMG’s busy quarter driving ubiquity & fueling growth
4 5 6
Creator tools consolidation & The song as an asset class – The artist economy goes
investment well underway another quarter of activity mainstream
8TECHNOLOGY UNDERPINS THE FUTURE OF MUSIC SHARING AND MONETIZATIO N 1
Pex Raises Funding from Tencent Music
Transaction Overview Pex Overview
» On February 16th, Pex announced a $57 million Headquarters: Los Angeles, CA
investment from Tencent Music
Founded: 2014
» Existing investors Illuminate Ventures and Susa
Employees: ~100
Ventures as well as new investors Tencent,
Amaranthine, Cue Ball, and NextGen Venture Description: Pex is a leader in digital rights technology aiming to bring
Received Later Stage VC Partners also participated in the round transparency, attribution, trust, and compensation to the digital
Investment from world. The Company’s technology monitors social networks
» The investment will help Pex to scale its
worldwide to find music and film content that belongs to
Attribution Engine (AE), which the Company
rightsholders and has been shared without authorization.
describes as “the licensing infrastructure for a
better Internet”
» The round comes a year after the Company’s Platform Features
$57MM acquisition of Dubset, a music rights startup, in
March 2020
Product Overview – Attribution Engine & Content Mgmt.
Platforms
» Support content creators, protect users, license from
rightsholders, and incentivize advertisers – all while safely
growing your platform Selected Transaction Commentary
Rightsholders
» Your content is constantly reused without your consent – finally
“itAttribution is vital to the Internet;
can help protect copyright
“everyone
We live in a world where
is creating, mixing, and
you can control how, when, and where your content should be without stifling creation. My vision remixing copyrighted works. But
used before it’s published has always been to deliver a set of the ability to rapidly identify,
technologies that brought attribute, and license them in real-
Creators transparency, accuracy, and – time is the missing link to address
» Platforms using Attribution Engine give their users access to most importantly – trust to digital the value-gap. If we could
more copyrighted content through real-time licensing so you rights and content. I feel Pex has seamlessly compensate artists – if
can create with confidence now accomplished that and with we could enable a culture of fair
this round of funding we are well “ and universal attribution – then
“
Law Enforcement positioned for what lies ahead. we could set the stage for a truly
» By securely providing digital footprints of known toxic content free and open Internet.
to Pex, uploads with harmful material can be identified and
blocked from ever publishing Rasty Turek, Amadea Choplin,
Founder & CEO, Pex COO, Pex
Notes:
Sources: Pitchbook, Press Releases, Company Website. 9THE HARDEST WORKING MAJOR IN THE MUSIC INDUSTRY 2
Warner Music Group’s Last Six Months
» Warner Music Group has seen impressive market growth over the past six months, particularly buoyed by a strong start end to 2020 and beginning to 2021
» The Company’s most recent quarter was highlighted by recent corporate / business development endeavors, most notably the partnerships with Feed
Media and TME and the acquisition of Zhara Music in late March
Invests in leading Arab indie
label Rotana Music Signs publishing deal
with Bad Bunny 6.0MM
Announces partnership with BPG Music collaborator MAG Mkt Cap: $17.7 billion
$40.00
Inks exclusive distribution Stock Price: $32.76
21.9% deal with Sky Digital India
Forms strategic
$38.00 MARKET CAP APPRECIATION 5.0MM
deal with leading
(10/1/20 – 3/31/21) Malaysian indie
label KRU
$36.00
Mkt Cap: $14.5 billion Signs licensing deal 4.0MM
Daily Trading Volume
Stock Price: $28.17 with Audiomack for Announces leading-edge
$34.00 key African regions Partners with
publishing partnership with
Stock Price
Benjamin Biolay’s
Love Renaissance
Partnership b/w Atlantic publishing
Enters exclusive 3.0MM
Records, Artist Partner company in France
$32.00 admin deal with Invests in
Grammy-winning Group, and ADA gaming platform
Greta Van Fleet Roblox’s $520MM Extends worldwide
$30.00 round of funding publishing deal with
rising star Saweetie 2.0MM
$28.00
1.0MM
$26.00
$24.00 0
10/1/20 10/31/20 11/30/20 12/30/20 1/29/21 2/28/21 3/30/21
Notes:
Sources: Capital IQ, Pitchbook, SEC Filings, Press Releases, Company Website. 10THE HARDEST WORKING MAJOR IN THE MUSIC INDUSTRY 2
Warner Music Q1 Partnerships – Tencent & Feed Media
Partnership Overview Partnership Overview
» On March 22nd, Warner Music and Tencent » On January 25th, Feed Media Group (FMG) has
Music Entertainment announced that they are partnered with Warner Music Group to launch
partnering on a new joint venture record label Adaptr, a new platform that allows developers
targeting the Chinese market to legally integrate music into their apps
» Through this deal, Warner Music's repertoire » Adaptr provides full licensing for on-demand
will be made available across all of Tencent's music, allowing businesses to skip direct
online music platforms in mainland China, licensing negotiations and go straight to
Formed Partnership With Formed Partnership With
which includes on-demand streaming channels market with music from popular artists and
QQ Music, Kugou Music, and Kuwo Music, songwriters
among many others » Launched in 2015, FMG helps business to use
music to create more engaging experiences for
their customers
This partnership leverages Warner Music’s global resources and This partnership further fuels the democratization of music
experience with managing artists, as well as Tencent’s massive production and distribution, allowing the independent community
influence in the Chinese entertainment industry better access to interacting with music
Selected Partnership Commentary Selected Partnership Commentary
“Music
Our collaboration with Tencent
has already delivered
“andWevision
have shared the same passion
by closely collaborating
“frictions
Among other things, reducing
around licensing will
“developers
With Adaptr, there’s no need for
to worry about
tremendous results for local and on copyright protection and enable us to accelerate whether they should ask for
international artists, and now empowering and protecting artists innovation, support the startup permission or forgiveness. Now
we're opening up even more and their work, while unlocking the community, engender they can get the commercial music
opportunities together… This intrinsic value of music. This competition, excite our fans with they want without needing to jump
renewed and expanded cooperation will be a new new and evolving ways to interact through the complex hoops of
partnership means we can help industry benchmark for diversified with music, and deliver additional music licensing, distribution, and
make our artists impossible to
“
development and value creation “
value for our artists and payments — the hurdles that often
ignore in one of the world's
“ in China's music industry. songwriters.
“
lead to illegal usage — and just
fastest-expanding music markets. focus on creating.
Simon Robson, Cussion Pang, Oana Ruxandra, Jeff Yasuda,
President, Recorded Music, WMG CEO, Tencent Music Chief Digital Officer, WMG Co-Founder & CEO, FMG
Notes:
Sources: Pitchbook, Press Releases, Company Website. 11THE HARDEST WORKING MAJOR IN THE MUSIC INDUSTRY 2
Warner Music’s Acquisition of Zhara
Transaction Overview Zhara Overview
» On March 24th, Warner Music Group Headquarters: Moscow, Russia
announced its acquisition of leading Russian
Founded: 2018
indie label Zhara Music
Employees: ~100
» Zhara Music will be rebranded to continue its
successful operations as Atlantic Records Description: Zhara Music is a leading independent record label in Moscow,
Russia, plugging into Warner Music’s global Russia. The label’s roster includes acts such as HammAli & Navai;
Acquired network Зомб; Morgenshtern; Slava Marlow; Rauf & Faik; Jony, Elman,
Andro, Gafur (RAAVA Music); ЛСП; Idris & Leos; and DAVA.
» Zhara co-founder Bahh Tee will lead the label
as ‘general producer’; Zhara will operate as a
separate office from Warner Music Russia Atlantic Records Overview
» Atlantic Records operates a label as a subsidiary of Warner Music
Undisclosed » Atlantic Records Russia will be headed by Bahh Tee as General
Producer, and the division will operate independently
Russian Music Market Rapidly Expanding ($MM)
Russian Artist Roster
Acceleration of Russian Music Market Highlighted by Rapid HammAli
Growth in Streaming Revenues (1) Зомб Morgenshtern
& Navai
$241.8
Selected Transaction Commentary
70.3% “been
[Co-Founder] EMIN and I have
on an incredible journey
“their
EMIN and Bahh Tee have poured
hearts and souls into building
CAGR (2016 – 2021) since we founded Zhara less than a label. They’re talented artists,
RUSSIAN MUSIC STREAMING $141.7 three years ago. We knew fans sincere fans, and successful
loved our music and were hungry businesspeople, and that’s shone
for new discoveries, but even we through in the incredible roster
$91.0 were surprised by how quickly they’ve built. I’m delighted that
things took off! Becoming part of Bahh Tee has agreed to launch
$61.1 the Warner Music family will help Atlantic Records in Russia –
take our support for our artists to connecting the world-renowned
$29.9 “
the next level both here and
“
brand to a whole new generation
$16.9
internationally. of artists.
2016 2017 2018 2019 2020 2021E Bahh Tee, Alexander Blinov,
Notes: Co-Founder, Zhara Music Gnrl. Dir., WMG Russia
Sources: Statista, Pitchbook, Press Releases, Company Website.
(1) Includes both paid subscription and advertising revenue. 12RAPID GLOBALIZATION OF STREAMING DRIVING UBIQUITY & FUELING GROW TH 3
Spotify Announces Further Global Expansion, Adding 80 New Markets
» On February 22, Spotify announced it aims to expand its international footprint, bringing its audio streaming service to 80+ new markets representing over a
billion people across Asia, Africa, the Caribbean, Europe, and Latin America – bringing the Company’s total markets covered worldwide to 170+
INTERNATIONAL
FOOTPRINT EXPANSION
80 NEW MARKETS 1Bn PEOPLE REPRESENTED 36 NEW LANGUAGES
PAKISTAN
NIGERIA
BANGLADESH
GHANA SRI LANKA
KENYA
TANZANIA
1 Will give millions of creators a 2 3 4
Will offer full global catalog in In most markets, will launch with full Available on Mobile and Desktop
chance to discover and build a career new markets at launch and podcast catalog and in others will Web Player at launch and will work
in audio creation—and a billion new continuously work with local introduce more from catalog / to introduce Spotify on more
fans the chance to hear it rightsholders to expand offerings proprietary creator platform Anchor platforms in coming months
13CREATOR TOOLS CONSOLIDATION & INVESTMENT WELL UNDERWAY 4
iZotope and Native Instruments Join Forces
Partnership Overview iZotope Overview
» On March 11th, iZotope and Native Instruments Headquarters: Cambridge, MA
announced that they have teamed up to form a Founded: 2001
new technology group Employees: ~200
» Francisco Partners together with EMH Partners Description: Developer of professional software and hardware tools designed
own both companies and led the partnership to offer audio recording, mixing, broadcast, sound design, and
initiative mastering of digital audio workstation programs. The Company
serves artists ranging from independent musicians to major film
Formed Partnership With » Native Instruments and iZotope will each
production houses and radio studios.
continue to operate independently, serving the
global creator community with the strength of
their unique capabilities Native Instruments Overview
» Both companies hold a shared vision of a Headquarters: Berlin, Germany
seamless creative experience and are creating
this unprecedented alliance to shape the future Founded: 1996
of music-making and audio production Employees: ~500
Description: Provider of hardware and software intended for digital music
Will Create Shared Vision of Seamless Creative Experience production and performance. The Company’s products
include a wide range of hardware, software, and digital tools
that are designed to facilitate professional music production.
Selected Partnership Commentary
» Product suite focused on
empowering and inspiring artists
» Product suite focused on audio
recording, mixing, broadcast,
“getting
As more and more people are
into music-making, they are
“share
iZotope and Native Instruments
the same mission to inspire
to create with software sound design, and mastering, looking for easy access to the and enable creativity. We both
instruments and sounds, smart with market leading post- building blocks for their journey. look to make it easier for
hardware, and platforms production audio solutions Joining forces with iZotope brings engineers, producers, and
» Top-selling products include: us yet another step closer to musicians to realize their creative
» Top-selling products include: fulfilling our shared mission to vision.... With iZotope’s intelligent
empower producers of all levels... processing and Native Instrument’s
I cannot begin to imagine what our “
innovative offerings, I can’t wait to
combined talent and technology see what artists will create.
“
can come up with to inspire artists
and music creators worldwide.
Constantin Koehncke, Mark Ethier,
CEO, Native Instruments Co-Founder & CEO, iZotope
Notes:
Sources: Pitchbook, Press Releases, Company Websites, MusicWatch. 14THE SONG AS AN ASSET CLASS – ANOTHER QUARTER OF ACTIVITY 5
Recent Catalog Acquisition Activity
Date Investor Catalog Transaction Details “deals
This is one of the most important
we have ever made. Carole’s
Includes complete collection of iconic songs have been making the
world go around for more than 55
3/31 Paul Simon Simon’s music spanning more
years. It’s very special to welcome
than six decades Carole to the Hipgnosis family and it’s
an honor to now be the custodians of
Includes music publishing back
“
these incredible songs that are of
3/31 Zach Crowell catalog, neighboring rights, and genuine cultural importance.
producer royalties
Merck Mercuriadis,
~$10MM; catalog includes ‘A CEO, Hipgnosis
Carole Bayer
3/18 Groovy Kind Of Love’, ‘Nobody
Sager
Does It Better’, and more “theMark's songwriting is a testament to
enduring power of music in our
lives. Throughout the years, we have
Includes publishing and recorded all heard Mark's iconic songs in the
3/3 David Crosby
music rights theater, on the radio and TV, and of
course at the Karaoke bar – and his
music will continue inspiring fans in
Includes extended rights for three the future. We couldn't be happier to
1/28 Mark James “
extend our creative partnership with
of his top songs
Mark.
Jonas Kant,
Includes dozens of songs by The SVP, Sony/ATV
1/26 The Zombies
Zombies and other writers
Incudes existing catalog and a
“American
Collective Soul are staples of
radio. I dare someone to
travel the US for a week with ears
1/18 Collective Soul futures agreement with the perked up and NOT hear one of their
band’s founder, Ed Roland songs. I am very happy to have gotten
“
to know Ed [Roland] personally over
Majority stake in nearly 500-song the last year.
1/11 Ryan Tedder music catalog of OneRepublic Josh Gruss
frontman; rumored to be $200MM
CEO, Round Hill
Notes:
Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 15THE SONG AS AN ASSET CLASS – ANOTHER QUARTER OF ACTIVITY 5
Hipgnosis Continues its Growth Trajectory (LSE:SONG)
» Hipgnosis Songs Fund (LSE:SONG) has been active to start the year and now owns more than 120 catalogs, comprised of over 60K songs
» This quarter, the Company proposed an issuance of up to 1.5Bn shares, amended its credit facility, and raised $100MM in a round led by Morgan
Stanley; the combined actions are projected to net Hipgnosis more than $2.3Bn in additional capital to fund further purchases
» Streaming now has 450MM+ paid subscribers – DSPs’ growth has accelerated the value of royalties, bringing Hipgnosis’ investment thesis to life
Recent Stock Performance (LSE: SONG) Highlighted Q1 Activity
10.0M 1.40 €
Mkt. Cap £1.3Bn
EV / LTM Rev 12.8x 1 2
9.0M
1.35 €
January 21, 2021 January 21, 2021
8.0M Hipgnosis announced the acquisition of the Hipgnosis proposed the issuance of up to
1.30 € catalog of legendary record producer and 1.5Bn shares over the course of the next 12
mixer Bob Rock. This deal includes 100% of months. At current share price, Hipgnosis’
7.0M Rock’s producer rights to Metallica music additional issuance would raise over $2Bn
1.25 €
6.0M
1 2
3 4
5.0M 3 1.20 €
4
February 5, 2021 March 18, 2021
4.0M Hipgnosis announces it has raised $100MM Hipgnosis announces the acquisition of
1.15 € in an investment round led by Morgan Carole Bayer Sager’s music catalog,
Stanley Investment Management, its first US- which industry representatives value at
3.0M based institutional investor ~$10MM
1.10 €
2.0M
1.0M
1.05 € “ discretionary
I could see very clearly that streaming was going to take music from being a
or luxury purchase to being a utility purchase. People consume
“
music whether they’re living their best lives or whether they’re experiencing
0.0M 1.00 € challenges and looking for comfort and escape.
Jan-04-2021 Feb-04-2021 Mar-04-2021 Merck Mercuriadis,
Share Price Volume CEO, Hipgnosis
Notes:
Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide. 16THE SONG AS AN ASSET CLASS – ANOTHER QUARTER OF ACTIVITY 5
BMG and KKR Announce Acquisition Alliance
Partnership Overview BMG Overview
» On March 24th, BMG and KKR struck a deal to Headquarters: Berlin, Germany
jointly pursue the acquisition of music
Founded: 2008
copyrights
Employees: ~1,000
» Through their partnership, KKR and BGM will
co-invest in rights across both recorded music Description: BMG provides music publishing and recording rights services
and music publishing along with pre-financing, song plugging, marketing support,
repertoire licensing, and advisory services in various areas of
Formed Partnership With » This will enable BMG to increase its spending
rights management for artists and writers.
power in the crowded music rights acquisition
space, while giving KKR a global partner for
music rights with a financial interest in
maximizing returns Platform Service Offerings
» This relationship does not involve any transfer
of equity, nor the formation of a formal joint Music Publishing Books Multi-Platform
venture
KKR Investments in the Music Industry
Recordings Films Licensing
Artlist (June 2020)
» Artlist is an industry-leading provider of high quality, royalty-free
licensed music, footage, and sound effects for video creators
Selected Partnership Commentary
Jio Platforms (May 2020)
» Based in India, Jio provides broadband and telecom services. Offerings
include recorded and live music, television, movies, and events
“leader
BMG has become an innovative
in the music industry by
“helped
Our early partnership with KKR
us rapidly become the first
embracing digital trends early on, new international music company
ByteDance (October 2018) while always placing artists at the of the streaming age… This new
» ByteDance develops mobile internet technologies. The Company owns center of everything they do. We relationship with KKR will offer
multiple in-house brands such as Toutiao and TikTok are delighted to reunite with artists and songwriters a well-
BMG’s talented team to pursue funded, financially stable home for
Gibson Guitars (October 2018) future opportunities together, their music assets, with the
» Gibson Brands manufactures musical instruments. It offers electric
“
leveraging our complementary confidence that their songs and
guitars, acoustic guitars, and other accessories and lifestyle products platforms. recordings will be managed both
“
professionally and respectfully.
AlphaTheta (March 2015)
» Formerly known as Pioneer DJ, AlphaTheta manufactures and markets
audio gear and equipment and is based in Yokohama, Japan Richard Sarnoff, Hartwig Masuch,
Partner, KKR CEO, BMG
Notes:
Sources: Pitchbook, Press Releases, Company Website. 17THE ARTIST ECONOMY GOES MAINSTREAM 6
Square’s Acquisition of Majority Stake of TIDAL
Transaction Overview TIDAL Overview
» On March 4th, Square announced it had Headquarters: New York, NY
entered into a definitive agreement to acquire
Founded: 2014
a majority ownership stake in TIDAL
Employees: ~300
» Square expects to pay a mix of cash and stock
to fund the transaction. Additionally, Square Description: TIDAL is an artist-led global music and entertainment platform
Acquired Majority plans to name TIDAL board member and that brings artists and fans closer together through unique
Stake of shareholder Shawn “JAY-Z” Carter to Square’s original content and exclusive events. The Company’s streaming
Board of Directors subject to closing service has more then 70 million songs and 250K high-quality
videos in its catalog and is currently available in 56 countries.
» TIDAL will operate independently within Square,
alongside the Seller and Cash App ecosystems
» The acquisition extends Square’s purpose of Sound Quality Offerings
$297MM economic empowerment to a new vertical:
musicians Standard HiFi Master
Platform Overview » Easily accessible and » Allows you to stream » Unauthenticated,
the best compromise audio using the unbroken sound quality
70MM+ Songs – Ad-Free, Anytime & Anywhere between data usage lossless format FLAC with the highest
» With over 70 million tracks, exclusive releases, and tons of and sound fidelity at 1400+ Kbps possible resolution
interviews and music videos, TIDAL brings you closer to the
artists you listen to – completely ad-free and on any device Selected Transaction Commentary
Mixes & Radio
» Get a personalized curation of songs and videos with My Mix or
“idea:
It comes down to one simple
finding new ways for artists
“TIDAL
I said from the beginning that
was about more than just
discover new music with Artist Radio to support their work. New ideas streaming music, and six years
are found at intersections, and later, it has remained a platform
we believe there’s a compelling that supports artists at every point
Hand-Picked Playlists one between music and the in their careers. Artists deserve
» Check out original playlists hand-picked by our team of experts economy. I knew TIDAL was better tools to assist them in their
or stream guest playlists curated by the artists you love something special as soon as I creative journey. This partnership
experienced it, and it will will be a game-changer for many
continue to be the best home for“ “
[and] I look forward to all this
Videos & Livestreams music, musicians, and culture. new chapter has to offer.
» Watch over 250,000 high-quality videos, including music videos,
original content, exclusive livestreams, and events
Jack Dorsey, Shawn “JAY-Z” Carter,
Co-Founder & CEO, Square Co-Founder, TIDAL
Notes:
Sources: Pitchbook, Press Releases, Company Website. 18THE ARTIST ECONOMY GOES MAINSTREAM 6
Giving Voice to the Connection between Artist and Fan – Profiling Clubhouse, Locker Room, & Stationhead
Headquarters: San Francisco, CA Headquarters: Los Angeles, CA Headquarters: Brooklyn, NY
Founded: 2020 Founded: 2018 Founded: 2015
CEO: Paul Davidson CEO: Howard Akumiah CEO: Ryan Star
Employees: ~40 Employees: ~15 Employees: 13
Total Users (1): ~10,000,000 Total Users (1): ~19,000 Total Users (1): ~500,000
Status: Private (Andreessen, TQ Status: Private (Acquired by Spotify Status: Private
Ventures, Foundational in March 2021)
Capital, among others)
DESCRIPTION / COMMENTARY DESCRIPTION / COMMENTARY DESCRIPTION / COMMENTARY
» Founded in 2020, Clubhouse is a new audio- » Locker Room is an app that provides users » Founded in 2015, Stationhead is an iOS,
first social app that makes it easy to talk to with an all-access pass to exclusive Android, and Web Platform that transforms
other people conversations with sports insiders and fans the traditional radio model, allowing anyone
» Organized into a series of user-created » The app allows users to react instantly to to host and stream a radio show, feature
“rooms” where people can talk with others, sports news as it happens, gather friends in 45MM+ songs, and create an engaging
audio experience with their fans
some of whom are speakers and others watch parties for games, and rep favorite
who are just listening teams and find a community » Stationhead allows anyone to broadcast live,
take callers, earn money, and play music
» Users can move fluidly between » Locker Room was first introduced in
— Up to 4 people can share the air at
conversations as speakers or listeners, October 2020 by Betty Labs, a forward-
once, allowing each person to speak and
covering a myriad of topics leaning team of developers, engineers,
be heard at the same time
» Celebrities such as Mark Cuban and Kevin product thinkers, and sports fans focused on
creating groundbreaking live experiences — Hosts can earn financial support from an
Hart have made appearances on the app to audience through in-app tips
date and the Company has been featured in » Betty Labs (along with Locker Room) was
— Through Stationhead's patented
publications like The New York Times, acquired by Spotify in March 2021 for an
technology, hosts can stream music directly
Forbes, TechCrunch, CNBC, and WIRED undisclosed amount (rumored to be
from Apple Music and Spotify accounts
» Raised $100MM in January 2021 at a post- ~$50MM); the acquisition builds on without the risk of copyright infringement
money valuation of $1Bn in a deal led by Spotify’s work to create the “future formats
» Celebrities like Cardi B, Raekwon, Trey Songz,
Andreessen Horowitz; currently in acquisition of audio” and will accelerate its entry into
and Francis and the Lights have used the
talks with Twitter at a $4Bn valuation the live audio space
platform and it has been featured in
Notes: Billboard, TechCrunch, WSJ, and Complex
Sources: Pitchbook, Press Releases, Company Websites.
1) Represents total users as of Q1 2021. 19THE ARTIST ECONOMY GOES MAINSTREAM 6
The Rise of the Non-Fungible Token – NFTs & Music
What? Why? When? Where?
» NFTs have propelled themselves » While they can be used as a creative » NFTs first came into being with » A large number of marketplaces
into pop culture in recent extension of a song or album, the rapid rise the creation of blockchain are currently dedicated to the
months, spanning sports, art, of NFTs is almost certainly attributable to » While they had initially gained sale of music-related NFTs
and – of course – music how financially lucrative they can be particular steam in the fine arts » These include OpenSea, Rarible,
» NFTs, or “non-fungible tokens,” » In today’s streaming world where artists community, an NFT feeding Nifty Gateway, and SuperRare –
are unique digital commodities collect fractions of a penny per stream, NFTs frenzy has since taken off across although entirely digital, they
that can be exchanged between provide artists a way to earn additional multiple avenues and genres in are not unlike traditional auction
people through blockchain income while selling digital collectables 2021 houses such as Christie’s or
» In the case of music, NFTs have » Meanwhile fans can in turn take pleasure in » As it relates to music, many Sotheby’s
ownership of these collectables and use the
generally taken the form of attribute the NFT explosion due » A digital wallet set up with
NFT as an investment opportunity as well
songs, images, and videos to COVID cryptocurrency (generally Ether)
given its limited nature
» All NFTs come with certificates of » Before the pandemic, touring is needed in order to purchase
» According to electronic pop artist RAC, “The
ownership and authenticity had been a key income stream most NFTs
play count isn’t really a good measure of
which cannot be hacked, value [of artists]. I listen to my favorite for artists, which has since been » Some NFTs (generally higher tier,
tampered with, or cloned due to albums once a month. I get tremendous completely upended unique ones) are put on open
their existence only in digital value out of them, yet it’s not reflected in » Creating and selling NFTs has auction with a reserve price,
form within blockchain their price.” helped a plethora of artists while others have a set price and
» For this reason, NFTs have become partially fill this gap with a can be bought immediately
especially powerful for smaller artists to potentially critical new form of
earn income from loyal fans income
Who?
Recent High-Profile Music-Related NFTs:
3/1: Sold $6MM 3/3: Sold $12MM 3/9: Sold $4MM 3/12: Released 4/4: Sold $2MM
worth of NFTs worth of NFTs worth of NFTs record as NFT worth of NFTs
Notes:
Sources: Press Releases, Company Websites. 20DIGITAL MUSIC TRENDS AND INSIGHTS MUSIC VALUE CHAIN:
The Evolving Music Landscape Live Concert
Live Concert
Artist
ArtistServices
Services Production &
Engagement
Publishing Distribution &&Rights
Rights Engagement
Streaming
Streaming Tools
Management
Management Tools
`Major Labels `Large Scale Publishers `Indie Labels Live Concert Streaming
DSPs DIY & Distribution Distributors
`Rights Management Artist & Label Services Artist Platforms
DAWs, Creator Platforms & Services AI Tools & Analytics Fan Engagement Video & Creative Live Event Mgmt.
Notes:
This is a representative list and may not include all relevant companies; please email jlambros@gcaglobal.com for inclusion 21DIGITAL MUSIC TRENDS AND INSIGHTS
Q1 2021: M&A and Financing Activity
M&A Transactions ($MM) Financings ($MM)
Ann. Enterprise Ann.
Ann. Enterprise
Acquirer Target Investor
Acquirer Target
Target Amount
Date Value Date
Date Value
3/30 NA 3/31 $50
3/11 NA 3/11 $450
3/10 NA 3/10 $11
3/4 $297 3/3 $4
2/1 $430 3/3 $40
1/28 $30 2/22 $55
1/28 NA 2/10 $57
1/22 NA 2/8 $9
Notes:
Sources: PitchBook, Capital IQ, Wall Street Research, Music Business Wire. 22DIGITAL MUSIC TRENDS AND INSIGHTS
Top 10 Leaders in Private Funding Raised-to-Date
Company Headquarters Founded Amt. Raised ($MM) (1) Company Description
Developer of an online music platform offering free
Hangzhou, China 2013 $1,410
and paid online streaming and downloads
Shanghai, China 2012 ~$652 Provider of an online audio streaming platform
Ximalaya
Developer of a music streaming platform designed to
Berlin, Germany 2007 $507
offer audio distribution and music sharing
Developer of a royalty-free music library to provide
Stockholm, Sweden 2009 $476
production music for films, TV, and YouTube
The merger of TouchTunes and PlayNetwork created
New York, NY 2017 ~$324 Octave, the largest in-venue, interactive music and
entertainment platform
Provider of music and video distribution services
Paris, France 2005 ~$217
intended for artists and labels to improve sales
Provider of music streaming services designed to
Paris, France 2006 $187
offer personalized music tracks
Developer of a platform designed for musicians to
New York, NY 2013 $160
create music, connect and collaborate easily
Provider of music distribution and marketing services
Brooklyn, NY 2017 $120
to create partnerships between artists and brands
Developer of a global music distribution and rights
Los Angeles, CA 2012 $60
management platform
Notes:
Sources: PitchBook, LinkedIn, company websites.
1) Includes debt and equity financing. 23DIGITAL MUSIC TRENDS AND INSIGHTS
Selected Active Investors
Investor Type Investor Logos
Accelerators / Seed
Venture Capital /
Private Equity
Corporate Investors
Alternative
Investors
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research. 24DIGITAL MUSIC TRENDS AND INSIGHTS
Most Active Deal Makers
Company Headquarters Number of Deals Investments & M&A
New York, NY 26
New York, NY 19
Santa Monica, CA 18
Shenzhen, China 15 Ximalaya
Stockholm,
Sweden 9
Cupertino, CA 6
New York, NY 6
Seattle, WA 5
New York, NY 5
Beverly Hills, CA 5
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research. 25TABLE OF CONTENTS
I. GCA Overview
II. Digital Music Trends and Insights
III. Public Markets
IV. M&A and Financings
V. Public Comps Backup
26PUBLIC MARKETS
Stock Performance
Q1 2021 Share Price Performance
30%
20%
15.2%
10%
2.1%
1.5%
- (0.4%)
(1.2%)
(4.3%)
(10%) (4.3%)
(9.1%)
(20%)
Jan-21 Feb-21 Mar-21
Music DSPs Live Creator Tools Digital Content Advertising Data & High-Growth
Publishers Entertainment & Software & Marketplaces Analytics SaaS
Core Music Technology Platforms & Relevant Categories
Music DSPs Live Creator Tools Digital Content
Advertising Data & Analytics High-Growth SaaS
Publishers Entertainment & Software & Marketplaces
2.1% (4.3%) 15.2% (0.4%) 1.5% (1.2%) (4.3%) (9.1%)
Q1 2021 Share Price Performance
Notes:
Source: Capital IQ. 27PUBLIC MARKETS
Trading Metrics
Enterprise Value / 2021E Revenue (1) Enterprise Value / 2021E EBITDA (1)
26.1x 28.7x
22.8x
21.2x
18.9x
14.0x 15.4x
11.8x
7.6x 7.1x 7.1x
4.5x 3.7x 2.9x 2.3x
NM
High-Growth Advertising Digital Data & DSPs Live Creator Tools Music Digital DSPs Data & Creator Tools Music Live Advertising High-Growth
SaaS Content & Analytics Entertainment & Software Publishers Content & Analytics & Software Publishers Entertainment SaaS
Marketplaces Marketplaces
Core Music Technology Platforms & Relevant Categories
Music DSPs Live Creator Tools Digital Content
Advertising Data & Analytics High-Growth SaaS
Publishers Entertainment & Software & Marketplaces
2.3x / 15.4x 4.5x / 22.8x 3.7x / 11.8x 2.9x / 18.9x 7.6x / 28.7x 14.0x / 7.1x 7.1x / 21.2x 26.1x / NM
2021E Revenue / 2021E EBITDA Multiple (1)
Notes:
Sources: Capital IQ, Wall Street Research. Multiples 50x considered NM.
1) Multiples represent median figures. 28TABLE OF CONTENTS
I. GCA Overview
II. Digital Music Trends and Insights
III. Public Markets
IV. M&A and Financings
V. Public Comps Backup
29M&A AND FINANCINGS
Precedent M&A Transactions
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Developer of a social audio application where sports fans can spontaneously be joined by
3/30/21 NA NA NA NA NA
accomplished insiders and athletes
Developer of professional audio software and hardware tools designed to offer audio
3/11/21 NA NA NA NA NA
recording, mixing, broadcast, sound design, and mastering programs
Operator of a music and sound design company, providing soundtracks for advertisements
3/10/21 NA NA NA NA NA
on TV and radio, online content, and VR
Operator of a music streaming application that provides lossless audio and high definition
3/4/21 $297 NA NA NA NA
music videos with curated editorial
Provider of an online advertising platform, offering access to audiences from over 2,050
2/17/21 $230 NA NA NA NA
radio stations
Operator of an independent music services company, providing publishing, label services,
2/1/21 $430 NA NA NA NA
and neighboring rights
Operator of an independent record label company, holding the first recordings of many
1/28/21 $30 NA NA NA NA
famous rock 'n roll artists
1/28/21 NA NA NA NA NA Provider of advertising and digital marketing services to artists
Manufacturer of hardware and software intended for computer-based music production
1/22/21 NA NA NA NA NA
and performance
Operator of livestreaming concert platform designed to help artists manage and sell tickets
1/19/21 NA NA NA NA NA
directly to their most dedicated fans
12/30/20 $300+ NA NA NA NA Provider of on-demand postcasts and audio recordings
12/17/20 $2 NA NA NA NA Owner and operator of audio production studio in Italy
Operator of a website that provides sample music libraries for producers and musicians
12/16/20 NA NA NA NA NA
worldwide
12/8/20 NA NA NA NA NA Provider of independent music merchandising services
12/4/20 NA NA NA NA NA Provider of distribution and label services to the music industry
11/20/20 NA NA NA NA NA Mobile application allowing users to record videos with professional vocal effects
11/16/20 NA NA NA NA NA Provider of highly flexible music liscencing services
Provider of hosting and ad-insertion capabilities for publishers and targeted ad
11/10/20 $235 NA NA NA NA
sales for brand partners
Creator, producer and distributor of music-based products and services for broadcast media
11/2/20 Major Triad Media NA NA NA NA NA
use
10/29/20 ~$6 NA NA NA NA Group of web-oriented businesses specializing in merchandise personalization
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research, Music Business Wire. 30M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
10/23/20 $39 NA NA NA NA Manufacturer and distributor of automobile speakers
10/21/20 NA NA NA NA NA Independent German live music promotion company and event agency
10/16/20 $39 NA NA NA NA Provider of artist management and music production services
9/24/20 NA NA NA NA NA Provider of a podcast service that uses AI to customize playlists for listeners
9/21/20 $4 NA NA NA NA Provider of comprehensive solutions across music-based marketing
9/15/20 NA NA NA NA NA Operator of a hip-hop news, reviews and commentary outlet
9/10/20 NA NA NA NA NA Operator of a full-service music publishing company
American record label established by record producer J.R. Rotem in conjunction with
9/4/20 NA NA NA NA NA
Warner Music
8/27/20 NA NA NA NA NA Provider of music rights data, administration and management services
Provider of subscription digital music services designed to give members advertisement-
8/25/20 $70 NA NA NA NA
free access to millions of songs
8/19/20 NA NA NA NA NA High end mastering studio, founded in 1998 by mastering engineer Barry Grint
Operator of a social media publishing platform intended to create and curate content
8/14/20 ~$85 NA NA NA NA
shareable on mobile-first platforms
7/20/20 NA NA NA NA NA Operator of a music production company with 3,500+ songs in its catalog
7/14/20 NA NA NA NA NA Operator of a boutique music placement and licensing company
5/19/20 NA NA NA NA NA Operates as a music publishing company in South Africa
Provides digital solutions for identifying musical content, recommending music and
4/23/20 NA NA NA NA NA
anticipating music-related trends
Developer of a news narration platform designed to eliminate the gap between writing for
3/23/20 $9 NA NA NA NA
print and the digital audio market
Operator of a media-tech company intended to deliver innovative rights management and
3/20/20 $38 NA NA NA NA
distribution solutions to the music and video industries
South Korean entertainment company, offering a record label, talent agency, music
2/21/20 $75 3.0x NM 23.5x NM
production, event management and concert production services
2/20/20 Formax $5 NA NA NA NA Provider of sound recording and music publishing services
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research. 31M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
2/5/20 $250 NA NA NA NA Owns and operates a website and podcasting network
1/29/20 $450 NA NA NA NA Owns and operates a sports and culture blogging website and podcast network
1/22/20 NA NA NA NA NA Provider of technology and services for content owners, record labels and distributors
1/2/20 $868 NA NA NA NA Hospitality company providing fans access and tickets to premier live events
10/18/19 $19 NA NA NA NA Operates regional commercial radio broadcast networks in Western Australia
Developer of an online music production marketplace designed to connect and hire top
9/12/19 NA NA NA NA NA
musicians
Specializes in the development, acquisition, production, financing and distribution of
8/22/19 $3,800 3.8x 3.2x 33.9x 15.2x
entertainment content
8/6/19 $10 NA NA NA NA Organizes and operates the largest country music festival in the United States
Cloud-based application software for music creators, artists, producers and music rights
7/30/19 NA NA NA NA NA
holders
Operates an online portal for musicians and dealers to buy, sell and trade new, used and
7/22/19 $275 7.6x NA NA NA
vintage gear and guitars
5/23/19 NA NA NA NA NA Operates a multi-channel network that enables users to monetize their music
4/25/19 Salerton $107 NA NA NA NA Owns and operates a music library
Global music company that publishes music for television, film, advertising and corporate
4/11/19 $217 5.7x NA 15.1x NA
video productions
3/27/19 $200 NA NA NA NA Provider of music distribution and monetization services for independent musicians
3/26/19 $56 NA NA NA NA Produces podcasts, focusing on creating scripted, story-driven programming
2/19/19 NA NA NA NA NA Provider of music composition, licensing and rights management solutions
Provider of music distribution, marketing and technology services intended to help
2/12/19 NA NA NA NA NA
independent labels and content owners manage their music
Privately-owned radio company, which operates radio stations in Maryland, Delaware and
2/6/19 $19 NA NA NA NA
New Jersey
2/6/19 ~$200 NA NA NA NA Digital media company focused on producing narrative podcasts
2/6/19 ~$140 NA NA NA NA Operates a mobile application and a website that broadcasts short audio clips
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research.. 32M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Operates an online advertising technology company that connects brands and audiences
1/30/19 $162 0.5x 0.4x 10.7x 3.3x
through digital advertising and content distribution
1/24/19 NA NA NA NA NA Offers on-demand music, audio streaming and AI technology
Provides music and audio streaming technologies and services for businesses and
1/22/19 $40 NA NA NA NA
individuals
12/7/18 NA NA NA NA NA Owns and operates recording studios
9/24/18 $3,454 2.3x 2.1x NM NM Provides music discovery platform services in the United States and internationally
9/13/18 $55 NA NA NA NA Offers podcasts publishing services
Provides music for major domestic and overseas music platforms such as iTunes, YouTube
7/25/18 $51 0.7x NA NA NA
and Spotify
7/23/18 Tron $140 NA NA NA NA Develops Internet content delivery technologies for customers worldwide
6/26/18 $218 2.7x NA NM NA Provides music distribution services in South Korea
6/11/18 $10 NA NA 10.0x NA Provides sound design, casting, music and writing services
(1)
5/21/18 $2,269 7.8x NA 20.6x NA Operates as a music publishing company
Owns and operates Newcap Radio, which is one of Canada's leading radio broadcasters with
5/2/18 $397 3.0x NA 9.7x NA
101 broadcast licenses
5/2/18 $69 NA NA NA NA Organizes live music events in Brazil
Music licensing platform that enables content creators, aggregators and digital music
4/12/18 NA NA NA NA NA
services to identify and pay royalties to music publishers
Manages licensing and commercial releases of video game music, including bespoke PR and
4/9/18 $6 0.7x NA 6.7x NA
marketing for the artists and composers
4/4/18 $50 NA NA NA NA Global music publisher headquartered in London
3/23/18 NA NA NA NA NA Operator of music streaming application in India
Provides monthly subscription packages to license music tracks and sound effects for
1/10/18 NA NA NA NA NA
creative projects
12/11/17 $400 7.1x NA NA NA Developer of an application that connects artists and fans through music discovery
Provides audio and lighting products include musical instruments, live sound equipment,
12/1/17 $28 1.0x NA NA NA
recording products and accessories for music retailers
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research.
1) Sony acquired the remaining 60% of EMI Music Publishing in this transaction. 33M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Manufacturer of hardware and software intended for computer-based music production
10/19/17 NA NA NA NA NA
and performance
10/15/17 $295 4.1x NA NM NA Investment holding company active in the entertainment and music sectors
9/22/17 $245 NA NA NA NA Operates as an independent music publisher
8/31/17 $50 1.7x NA NM NA Provides radio music services in the United States and internationally
6/19/17 $18 NA NA NA NA Provides rights management, production, publication and live event services
Music Catalogue
Provides ticketing, marketing and analytics tools that help event promoters and venues
6/9/17 $200 NA NA NA NA
book talent and streamline operations
5/9/17 $11 NA NA NA NA Provides an online service that turns iPhones into wireless karaoke microphones
5/3/17 $26 NA NA NA NA Distributor of a high-quality, focused roster of independent record labels
4/13/17 $626 1.3x 1.3x 8.0x 6.7x Provides in-store media solutions in the United States and internationally
2/13/17 $922 1.4x 1.3x 6.3x 5.9x Engages in music distribution, commercial systems, ICT and other businesses in Japan
2/2/17 $2,813 2.3x NA 8.6x NA Provides radio broadcasting services in the United States
Offers broadcasting services and operates thematic channels for the digital pay-television
1/30/17 $289 1.7x NA 7.5x NA
market in France
1/4/17 $1,200 4.4x NA NA NA Provider of music licensing and administration services
Broadcasts live events and world premieres from stages, festivals and music events in
1/3/17 $8 NA NA NA NA
Mexico, Europe, Africa, Asia and Australia
Provider of entertainment data and technology for music, consumer electronics,
12/20/16 $560 NA NA NA NA
automakers, media and cable and satellite operators
11/23/16 NA NA NA NA NA Owns and operates an online music streaming, sharing and distribution platform
Identifies and collects money earned by songwriters and music publishers for use of their
7/21/16 NA NA NA NA NA
works in YouTube videos
Developer of an application programming interface designed to deliver powerful music and
5/12/16 NA NA NA NA NA
licensing capabilities
Summary Statistics
Mean 3.1x 1.7x 13.4x 7.8x
Median 2.5x 1.3x 9.9x 6.3x
Notes:
Sources: Capital IQ, PitchBook, Wall Street Research. 34M&A AND FINANCINGS
Precedent Financings
($MM)
Announced Amount Enterprise
Date Investor Target Invested Value (EV) Target Description
Provider of music distribution and marketing services intended to facilitate partnerships between artists
3/31/21 $50 NA
and brands
3/11/21 $450 $1,400 Developer of a royalty-free music library, providing production music for films, TV, and YouTube
3/10/21 $11 NA Provider of a digital platform intended to help share music clips in text messages
3/3/21 $4 NA Developer of a music technology platform intended to allow artists to monetize their music
3/3/21 $40 NA Operator of a music streaming platform
2/22/21 $55 $398 Developer of a music creation platform designed to produce, connect, and collaborate easily
Provider of a digital rights technology that enables transparency and accuracy to license and manage
2/10/21 $57 NA
content
2/8/21 $9 NA Provider of virtual reality, live music performance experiences
12/17/20 Quincy Jones $33 NA Ticketing technology platform for music and events
Blends broadcast technology and real-time gaming graphics to transform artists into digital avatars in a
11/19/20 NA NA
virtual world
11/1/20 $165 NA Retailer of musical instruments
10/27/20 NA NA Developer of a digital discovery platform intended to change the music business with artificial intelligence
Developer of a music streaming platform built for connecting fans directly with artists in familiar music
10/23/20 ~$1 NA
player interfaces
10/22/20 NA NA Provider of a range of audio production services for film, TV, gaming and streaming
10/21/20 $45 NA Developer of audio software for musicians, composers, producers & sound designers across all genres
9/21/20 ~$12 NA Developer of an online music services platform designed to offer unlimited music streaming
9/15/20 ~$5 NA Developer of speaker systems designed to offer quality audio for automotive and professional consumers
9/11/20 Undisclosed ~$6 NA Operator of a lyrics interpretation platform that helps people share facts and insights about songs
9/10/20 $9 NA Subscription-based audio content platform, offering audio journalism content through its app
9/2/20 $50 $530 India's largest commercial music streaming service
Notes:
Sources: Capital IQ, Music Business Worldwide, PitchBook, Wall Street Research. 35You can also read
