This week, the European Fee accredited Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings.
Additionally this week, Spotify mentioned it has the tech able to allow followers to create AI-generated remixes and covers of their favourite artists’ music.
In the meantime, MBW reported, citing sources with data of the state of affairs, that Olivier Chastan’s music rights acquisition car, Iconoclast, is in discussions over a possible sale, with a price ticket of roughly $500 million.
Elsewhere, Create Music Group (CMG) introduced one other big-money deal – this time with Vancouver-headquartered indie Nettwerk Music Group.
Listed here are a number of the largest headlines from the previous few days…
1. SPOTIFY EYES AI ‘DERIVATIVES’ AS NEW REVENUE STREAM FOR ARTISTS – SAYS ITS TECH TO LET FANS MAKE REMIXES AND COVERS IS READY
Spotify mentioned it desires to allow listeners to work together with their favourite artists’ music by means of AI – and that the expertise to take action is already constructed.
The barrier? Licensing. The feedback, made by Co-CEO Gustav Söderström on the corporate’s This fall 2025 earnings name, landed amid an intensifying business debate over how AI-powered derivatives of present music needs to be licensed and monetized.
Söderström broke Spotify’s considering on AI music into two classes: internet new music created from scratch utilizing AI instruments, and “derivatives” of present music – AI-generated covers or remixes.
It’s the second class the place Spotify seems most excited. Söderström described derivatives as “an untapped alternative for artists to make cash off of their present IP”. (MBW)
2. OLIVIER CHASTAN’S ICONOCLAST IN SALE TALKS AT PRICE TAG OF AROUND $500 MILLION
MBW understands that Olivier Chastan’s music rights acquisition car, Iconoclast, is in discussions over a possible sale, with a price ticket of roughly USD $500 million.
In line with sources with data of the state of affairs, Iconoclast’s catalog is presently producing roughly USD $25 million to USD $35 million in annual earnings, derived from a mix of lively and passive rights.
Based mostly on these figures, a $500 million sale worth would symbolize a a number of of someplace between roughly 14x and 20x annual earnings.
MBW understands that Brian Richards, the founder and managing companion of monetary advisory agency Artisan, is taking part in a central position within the sale course of. Richards just lately performed an instrumental half in The Weeknd’s unprecedented $1 billion catalog partnership take care of Lyric Capital Group.
A number of sources inform MBW that Iconoclast is in talks with roughly 10 totally different events, a mixture of main music firms and enormous unbiased music rights funding companies… (MBW)
3. CREATE MUSIC GROUP STRIKES $300M INVESTMENT IN NETTWERK MUSIC GROUP, AS CANADIAN FIRM EXECUTES MANAGEMENT BUYOUT
Create Music Group (CMG) introduced one other big-money deal – this time with Vancouver-headquartered indie Nettwerk Music Group.
On February 6, Nettwerk confirmed that it has entered right into a definitive settlement to finish a administration buyout from its present traders.
As a part of the proposed association, CMG’s Create Capital will make investments over USD $300 million into Nettwerk on closing, and says it would additionally present entry to “substantial follow-on capital and assist providers thereafter”.
In a press launch, the events acknowledged that the deal – anticipated to shut later this month – will enable the Nettwerk administration crew to extend its possession stake, enabling the Canadian agency to retain its “identification and independence”.
MBW understands the deal will see Create taking a controlling place in Nettwerk’s music IP portfolio, whereas Nettwerk itself stays independently owned and operated... (MBW)
4. THE EMPIRE STRIKES BACK: THE MAJORS AND MERLIN GAINED (A BIT) OF MARKET SHARE ON SPOTIFY LAST YEAR
It’s turn into a perennial commerce music business story: The mixed world market share of the three main report firms and Merlin on Spotify is in decline.
Effectively, no extra.
In 2025, in line with Spotify, this long-running pattern was really reversed. By a sliver, anyway... (MBW)
5. DONE DEAL: UMG’S DOWNTOWN ACQUISITION APPROVED BY EU COMPETITION REGULATOR
It’s a carried out deal. The European Fee has accredited Common Music Group’s proposed $775 million acquisition of Downtown Music Holdings.
The conditional approval is topic to UMG’s dedication to divest Downtown’s Curve royalty accounting enterprise.
The inexperienced mild from the EC, introduced Friday (February 13), concludes a regulatory course of spanning greater than a yr since UMG’s Virgin Music Group first introduced the transaction in December 2024… (MBW)
Associate message: MBW’s Weekly Spherical-up is supported by BMI, the world chief in performing rights administration, devoted to supporting songwriters, composers and publishers and championing the worth of music. Discover out extra about BMI right here. Music Enterprise Worldwide
