In today's CMU Daily: The Hipgnosis v Hipgnosis saga could finally be over as Concord swoops in to acquire the song rights investment fund. But when something could be over, that also hints that there could still be more drama to come. So obviously we're hoping there might be...

One Liners: RCA hires Harri Davies; IMPALA webinar for Earth Day; warning over Taylor Swift ticket scams; Music Creator Remuneration Working Group meets; new music from Will Young, Pearl Jam, Fontaines DC, Joe Goddard, AG Cook, John Grant, King Hannah, Sevdaliza, Shelf Lives

Also today: US Congress to consider TikTok ban proposals alongside Israel and Ukraine aid packages; Black Lives In Music launches bullying and harassment survey; Everyone* loves golf!

*Live Nation and golf people

Plus: Shiv is CMU Approved

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Hipgnosis debacle might be over as Concord offers to acquire entire share capital of SONG - but there’s a catch…

As dawn broke over the City Of London this morning, and against the background hum of Bishopsgate, commuters were surprised to hear the unmistakable sounds of a full throated woman warming up her voice. The fat lady was practising her scales.

Around the same time, news broke that Hipgnosis Songs Fund, the London Stock Exchange-listed song rights investment fund, had announced that it would be advising shareholders to accept an offer of $1.16 per share from Alchemy Copyrights LLC via its subsidiary Concord Chorus Limited. Privately-owned music acquisition giant Concord has set its sights on SONG - and by all indications will get it.

In March SONG had announced that its Operative NAV per share had been marked down to $1.0765 (then 85.03p) from $1.1657 (92.08p) “following identification of an error due to the double counting of accrued revenue”. This was part of Shot Tower Capital’s due diligence investigation, which followed months of high drama name calling between SONG and its investment adviser, Hipgnosis Song Management, the Merck Mercuriadis-helmed company that manages the rights acquired by SONG.

By the time the markets closed today more than 174 million shares in Hipgnosis had changed hands as investors took advantage of the announcement to offload their shares - a 100x increase on yesterday’s trading volume of 1.7 million shares, and is nearly double the total number of shares traded in the last month - 97.4 million. More than 3.3 million of those trades happened by 8.05am, which compares to the last month’s daily average trading volume of 4.7 million, according to data from AIC.

With the market price remaining stable around the offer price this suggests that there was significant pent up demand from frustrated investors looking to ditch their Hipgnosis shares - but also that there is support from the market at the offer price, with arbitrage traders willing to buy shares just under the offer price betting on the expectation that when the deal goes through they will be able to collect a small premium.

In fact, that bet may be one worth taking. The Concord offer has a sting in the tail in the shape of a $25 million “contingent consideration”. Under the terms of this clause, shareholders stand to get an additional $25 million between them, or around $0.02 per share if - and only if - Hipgnosis Song Management enters into a “tripartite agreement” with SONG including its subsidiaries, and Concord to “terminate the Investment Advisory Agreement”.

Already dubbed by some City commentators as the “FO clause” this seeks to ensure an “elegant exit” of HSM from the equation, tidying up one of the key points of contention in the Hipgnosis saga.

A statement from SONG in its 19 Oct statement initiating the “strategic review” set out the process for terminating its agreement with HSM.

“The Investment Advisory Agreement can be terminated, other than for cause, by the company on not less than twelve months' notice, with an additional one-time termination fee equal to one year's advisory fee calculated on NAV as at the termination date”, it said. That advisory fee is 1.21% - which, curiously enough is almost exactly £20 million, or $25 million US dollars at current rates. Those who have been following the Hipgnosis drama over recent months will also note that this is the same amount as the “bung” offered by HSF to potential acquirers.

So have Concord and SONG cooked up a way to avoid paying HSM a termination fee, by using the bung to fund things? Sources say no. However, the proposal that HSM should agree to exit - or else shareholders don’t get another $25 million - can be seen as a strong arm tactic: leave quietly, or we’ll ask you to leave.

What’s remarkable about this part of the proposal is that it begs the question why HSM would agree to these terms when it could simply accept a standard twelve month notice period on its advisory agreement, and walk away with around £20 million for its trouble? Plus, given the complexities around handing off music rights from one manager to another, is there not a benefit to HSM serving out that twelve month notice period and ensuring an amicable transfer of undertakings during that period?

SONG’s current chair, Rob Naylor, who previously sold his Round Hill Music Fund to Concord - and so presumably has both close and good relationships with the potential new owner of SONG - has been accused by some city commentators of being “out to get” Merck Mercuriadis. At the same time, all parties are presumably keen to avoid a long and costly legal battle, which would only serve to bring yet more attention to the Hipgnosis drama.

Back to the price offered: some in the City have pointed out that although in today’s money the deal looks fair - on par with the most recent NAV - the current economic climate and backstop for the deal of November means that, with US interest rates high, and UK rates perhaps set to come down, there’s a potential currency risk as the dollar strengthens against the pound. Over the same period it’s possible - though, perhaps not likely, given the current state of affairs at HSF, that the fund’s NAV could rise over the same period.

As things stand - bar a last minute bid from HSM-associated Blackstone - it seems likely that the deal with Concord will go through. Whether that involves a messy legal undertaking as SONG and HSM conclude their acrimonious divorce only time will tell.

One thing’s for certain: it’s ain’t over till the fat lady sings, and that could still be some time.

Kilimanjaro Live // Promoter Assistant (London)

FKP Scorpio Entertainment // Head of Marketing (London)

FKP Scorpio Entertainment // Ticketing Manager (London)

FKP Scorpio Entertainment // Social Media Manager (London)

foundation.fm // Account Manager (London)

Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

One Liners: Willi Young, Taylor Swift, RCA + more

APPOINTMENTS

Sony Music has appointed Harri Davies as Head of A&R at RCA Records UK. She joins from Concord Music Publishing. “I’m honoured to step into this role, at a label with a rich history of musical innovation”, she says. “I look forward to working alongside the incredible RCA team and leveraging my experience to discover new artists together”.

LABELS

IMPALA has announced a free webinar on how the music industry can help to tackle climate change to coincide with this year’s Earth Day. The session will take place at 3pm on 22 Apr. Contact [email protected] for more information.

LIVE BUSINESS

Lloyds Bank has issued an “urgent warning” over ticketing scams related to Taylor Swift’s upcoming UK shows. The bank says that more than 600 of its customers have lost money to scammers offering fake tickets, with its data indicating that Swifties have lost over £1 million in total.

DIGITAL

It was the first meeting of the UK government convened Music Creator Remuneration Working Group earlier today, which is bringing together music industry stakeholders to discuss how streaming money is shared out. The Council Of Music Makers has published the statement it delivered as part of that session. We will have a full report on that, and responses from other stakeholder groups, in tomorrow's CMU Daily.

RELEASES

Will Young has released new single ‘Falling Deep’. He’s also announced UK tour dates running for September and November.

Pearl Jam have released new single ‘Wreckage’. The track arrives ahead of new album ‘Dark Matter’, which is out tomorrow.

Fontaines DC will release new album ‘Romance’ on 23 Aug. First single ‘Starburster’ is out now.

Joe Goddard has announced that he will release new solo album ‘Harmonics’ on 12 Jul. It will feature guest appearances from Jungle’s Tom McFarland, Alabaster DePlume, Ibibio Sound Machine and his Hot Chip bandmates Alexis Taylor and Al Doyle. Out now is new single ‘Moments Die’ featuring Barrie.

AG Cook has released new single ‘Soulbreaker’.

John Grant has released new single ‘The Child Catcher’. His new album ‘The Art Of The Lie’ is out on 14 Jun.

King Hannah have released new single ‘Davey Says’, taken from new album ‘Big Swimmer’, which is out on 31 May.

Sevdaliza has released ‘Ride Or Die II’, the second part of her 2023 track ‘Ride Or Die’. Like the original, it features Villano Antillano and also adds rapper Tokischa to the mix.

Shelf Lives have released new single ‘Uncle Fred’. They’ve also announced a headline show at the Moth Club in London on 23 Oct.

TikTok ban added to aid bill in US House Of Representatives, which could speed up approval in the Senate

The speaker of the US House Of Representatives, Mike Johnson, has included the TikTok-targeting sell-or-be-banned law in a big new bill that also includes aid for Ukraine and Israel. It’s a move that could result in the US Senate endorsing a TikTok ban much sooner than originally expected, although this version of the proposed new law would give China-based owner ByteDance more time to sell the app.

Needless to say, TikTok is not impressed. A spokesperson says, “It is unfortunate that the House Of Representatives is using the cover of important foreign and humanitarian assistance to once again jam through a ban bill that would trample the free speech rights of 170 million Americans, devastate seven million businesses, and shutter a platform that contributes $24 billion to the US economy, annually”.

The House Of Representatives has already passed the proposed sell-or-be-banned law, which gives ByteDance six months to sell TikTok or face a ban in the US. The measure is a response to concerns that the Chinese government has access to TikTok user data via ByteDance.

TikTok has always denied all the concerns about data security, while also talking up Project Texas, its alliance with American tech company Oracle, which has put in place measures to ensure that all US user data is stored on servers within the US, and that it never leaves the country.

However, there have been various media reports that suggest Congress members are right to be concerned about what happens to TikTok user data, claiming that - at the very least - data about American users can still end up with ByteDance employees in China. And that includes a new article published by Fortune which cites a number of former employees who claim that Project Texas is “largely cosmetic”.

One of those ex-TikTok team members claims that, while his line manager was in the US, he still really reported to ByteDance execs in Beijing. As well as that, every two or three weeks he would email spreadsheets full of US user data to his colleagues in China who were working on evolving the TikTok algorithm.

Responding to the Fortune article on X, TikTok says that the people interviewed in it are talking about systems that were in place prior to Project Taxes going into effect. Nevertheless, articles like this will only add to the momentum in Congress for some kind of TikTok law to be passed.

The sell-or-be-banned proposals were fast-tracked in the House and already have the support of US President Joe Biden. However, they also need to be voted on by the Senate.

There is definite support for the proposals in the upper house of US Congress, though it is generally thought that the new law will face much more scrutiny there. Senate Majority Leader Chuck Schumer has already confirmed that the proposals will be considered, but hasn't yet committed to a timeline.

Some senators have expressed concern that the proposals breach First Amendment free speech rights and will therefore falter in the courts. Others have also said that a six month deadline to negotiate and complete a sale is unrealistic.

The new version of the proposed ban that is included alongside the aid packages deals with that particular concern by providing up to a year for any sale to be completed; basically 270 days with the option for the President to extend the deadline by another 90 days.

Senator Maria Cantwell, chair of the Senate Commerce Committee which has been considering the proposals, noted that fact in a statement, saying, “I’m very happy that Speaker Johnson and House leaders incorporated my recommendation to extend the ByteDance divestment period from six months to a year. Extending the divestment period is necessary to ensure there is enough time for a new buyer to get a deal done”.

Given the urgency of the aid packages for Ukraine and Israel, this new bill should get speedy consideration in the Senate if it is passed by the House this weekend. Hence why it potentially speeds up the TikTok ban getting Senate approval. Though even if it is passed by both chambers of Congress, it is likely court action could further delay the deadline for any forced sale.

Approved: Shiv

Irish singer-songwriter Shiv has dropped her latest single, ‘Limerence’, marking her debut track from the upcoming album 'The Defiance Of A Sad Girl', slated for 4 Jul. Produced during a writing trip at her parents’ home in Uganda, 'Limerence' embodies Shiv's bold re-entry into independence after parting ways with Warner Music.

With dulcet yet resolute vocals intertwined with R&B melodies, 'Limerence' delves deep into the complexities of unrequited crushes, masterfully capturing the intricate dance of yearning and acquiescence.

“I have the tendency to run away with myself and my feelings”, she shares. “Sometimes the delusion wins, and I write entire stories in my mind, becoming borderline annoyed with the other party for not carrying their weight in the fictitious relationship I’ve created in my mind”.

As Shiv embraces her newfound independence, 'Limerence' lays the groundwork for 'The Defiance Of A Sad Girl’ to be brimming with soul.

🎧 Listen to ‘Limerence’ here

Black Lives In Music launches bullying and harassment survey

Black Lives In Music has launched a new survey on bullying and harassment in the music industry. Anonymous data collected in the YourSafetyYourSay survey will inform the organisation’s own Anti Racist Code of Conduct, as well as the work of the new Creative Industries Independent Standards Authority, and legislation developed by the UK government’s Department Of Culture, Media And Sport.

BLiM says that, since publishing its ‘Being Black In The Music Industry’ report in 2021, it has been “inundated” with calls for support from people who have experienced numerous forms of bullying and harassment.

“We are flooded with stories from people who have experienced bullying and (sexual) harassment in the music industry”, says chief exec Charisse Beaumont in a statement. “They are shocking and it’s clear that high profile cases in the media are the tip of an iceberg. It can happen to anyone and it is often rooted in misogyny, racism, homophobia, transphobia and more”.

Referencing the recent ‘Misogyny In Music’ inquiry carried out by the UK Parliament’s Women And Equalities Committee - which found that sexual harassment and abuse is “endemic” and underreported in the music industry - Beaumont adds, “Bullying and harassment is normalised in the music industry, as shown by the ‘Misogyny In Music’ inquiry. To turn the inquiry findings into action, we need the information”.

“The data, especially from underrepresented groups, just doesn’t exist”, she continues. “The bullying and harassment survey will be a comprehensive survey to capture everyone’s voices, especially those rarely heard. We need to understand what is really going on behind closed doors so we can tailor interventions”.

Supporting the launch of the research, musician VV Brown comments, "The YourSafetyYourSay survey is needed to help eradicate discrimination, bullying and harassment in the music industry, especially towards black and POC individuals, and to have somewhere to report these incidents. This is such important work, and I fully support Black Lives In Music’s valiant work, and urge those comfortable to share their stories”.

On their own experiences, rock duo Nova Twins say, “We have to acknowledge the barriers faced by POC talent within the music industry. Far too often, black musicians and industry professionals encounter bullying and harassment, stifling their voices and existence. Discriminatory labels limit our creativity and opportunities, hindering our ability to thrive”.

“Hearing from other artists like us with very similar experiences, both independent and on majors, has been eye-opening”, they go on. “These hurdles, and plenty more like them, could've easily held us back from reaching our full potential. It's a story too many of us share. That’s why the YourSafetyYourSay survey is a vital step towards amplifying marginalised voices, uncovering untold stories that need to be heard”.

Find out more and complete the survey here.

Setlist Podcast: MPs want to see action on musicians’ income

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss the warning from UK politicians that there need to be “tangible steps to improve musicians’ remuneration and performer rights” by this time next year, and Blur drummer Dave Rowntree’s class action lawsuit against PRS For Music over songwriter royalties, and more.

🎧 Click here to listen - or search for 'Setlist Podcast'

Live Nation is going to show you just how entertaining golf can be. No, really. Prepare yourselves

What’s the one thing that you think of when you think of music? If the answer wasn’t “golf” then what’s actually wrong with you?

Golf and music go so well together: the silence of the green, the gentle thwack of stick and ball, the ever-so-genteel golf clap. Polyester slacks, diamond patterned sweaters. All of these things sit perfectly alongside the energy of a crowd, a mosh pit and 50,000 people screaming their favourite lyrics wildly off key, revelling in sweat-soaked glory.

If you don’t think golf and music go together like bread and butter then you probably need your head checked.

Forget that golf is the sport of choice of comfortably proportioned old men who can huff and puff their way through eighteen holes. Forget that it’s the sport of choice of Donald Trump, possibly the best advert ever for what happens to you if you care more about golf than anything else.

Golf is also the sport of POWER, and those comfortably proportioned old men run the music business. Who can forget Eddy Cue and Irving Azoff’s golf-inspired bromance? And, of course, Live Nation Chair Greg Maffei is a keen fan of waggling his club around, often snapped out and about on the golf course.

Presumably, this is why Live Nation - possibly keen to distract from an apparent looming DOJ antitrust investigation - has teamed up with The R&A to “take one of golf’s most entertaining championships to the next level”. For those less fluent in the vernacular of golf, The R&A is one of golf’s most august bodies, born out of The Royal And Ancient Golf Club of St Andrews and which oversees The Open, the golf world’s biggest men-only sticks-and-balls face-off.

The “most entertaining” of championships, central to Live Nation’s interest, is The Women’s Open golf championship - though quite why the Women’s championship is considered more “entertaining” than the men-only Open is not entirely clear from the frothy press release provided. That’s probably a question best not contemplated too closely.

Golf, like many sports, has a long and rich history of misogyny where female athletes have long been subject to everyday sexism - a point recently illustrated when professional golfer Georgia Ball had to fend off unsolicited “swing advice” from a male golfer, captured in a viral TikTok video.

But wait! The Women’s Open is PURE ENTERTAINMENT! Last year’s event had a fan festival village and “non-stop entertainment for attendee’s alongside women’s golf at the most elite level”. This year’s event will ramp this entertainment up even further by “integrating live music performances” into things. Quite what this will look like is currently somewhat fuzzy. A Live Nation spokesperson said that the new partnership will see that “non-stop entertainment” get even more non-stop, with “more entertainment and performance all day across the weekend in the Fan Village”.

Hopefully that could include choice renditions of favourite golf-related songs, like Glen Everhart’s ‘The One Putt Strutt’ or ‘Trouble In The Gorse’. Indeed, perhaps all play could stop at the ninth tee for a tribute rendition of Caravan’s ‘Golf Girl’, which is exactly the sort of song that you’d imagine someone singing about golf might sing.

With Caravan still playing live shows it is to be hoped that Live Nation would see the value in snapping them up for some golf-appropriate entertainment. Whether or not that will happen, only time will tell.

One thing is certain though, and that is that golf is such a core part of Live Nation’s culture that its code of conduct makes specific reference to what you should do if you’re offered a gift of golf clubs. I’ve never been offered a set of golf clubs as a gift, so clearly I’m moving in the wrong circles. Or, perhaps, the right ones.

Either way, the TLDR of Live Nation’s code of conduct is that it’s fine to accept a gift of golf clubs, but only if they are less than $500. That is a situation that, it would seem, Live Nation finds unlikely, saying that the unlikely Live Nation staffer would “most likely not” be allowed to keep the golf clubs as “unfortunately” the code of conduct means that “only gifts of nominal value may be accepted”.

Presumably in Live Nation world you don’t expect to be gifted a $439 set of golf clubs from CostCo. This is, after all, a company whose CEO legendarily said that Live Nation was part of an $8 billion industry adding “that’s like cocaine money”, and compared the Taylor Swift ticketing-debacle to a robbery at a Prada store.