Welcome to Music Business Worldwide’s weekly roundup, where we ensure you stay updated with the five biggest stories from the past week. MBW overview supported Centertrip, helping over 500 of the world’s top artists maximize their earnings and lower their touring expenses.
Legal Disputes and Company Moves
MBW’s most read stories this week centered around the legal battle between Drake and Universal Music Group regarding Kendrick Lamar‘s diss track Not Like Us.
The situation escalated dramatically as Drake filed a slander lawsuit against UMG, prompting the company to firmly reject the allegations.
In related news, UMG announced that Pershing Square Holdings, led by billionaire investor Bill Ackman, is seeking a secondary listing on the US stock exchange. To execute this, Pershing Square Holdings must offload $500 million in UMG shares.
Industry Reactions and Developments
This week’s developments also saw the Supreme Court upholding a law that might force TikTok to divest its US operations or face a ban in the country. President-elect Donald Trump is reportedly contemplating an executive order to delay the enforcement of this law.
Furthermore, MBW reported burgeoning speculation that the $500 million Tempo Music could emerge as the next significant acquisition within the industry.
The music community’s thoughts and prayers turned towards Los Angeles amid the devastating wildfires. The FireAid benefit concert, co-produced by Shelley and Irving Azoff along with Live Nation and AEG Presents, has confirmed its lineup for the January 30 event.
1) The next big music business is the $500 million acquisition of Tempo Music, MBW sources say.
Photo: Press
Three years ago, BIE informed you that the Tempo Music rights fund, created by the private equity firm Providence, was set to sell my catalog for roughly $500 million.
That sale did not happen. As interest rates rose sharply in markets such as the UK and US, significant acquisition activity in the music sector saw a remarkable slowdown.
Last year, however, as interest rates stabilized or dropped in prominent locations, talks about Tempo resumed.
We’re now hearing intensifying whispers that the end of the Tempo saga is near: a sale of the Tempo portfolio at an estimated value of half a billion dollars.
2) Universal Music responds to Drake, claims he’s attempting to hinder the creative expression of the artist.
Mujahid Mottakine / Shutterstock
Universal Music Group addressed the libel suit lodged by Drake on January 15.
The lawsuit accuses UMG of fostering a “false and malicious narrative” against him through song lyrics, single artwork, and the music video for Kendrick Lamar‘s diss track Not Like Us.
Responding to the libel allegations, a spokesperson for UMG stated that “not only are these claims unfounded, but the notion that we would seek to damage the reputation of any artist—especially Drake—is illogical.”
A UMG spokesperson further emphasized that the company “will vigorously defend this lawsuit to safeguard our reputation and our people…”
Photo: Thomas Ragina/Shutterstock
3) Supreme Court supports law that bans TikTok in the US unless ByteDance’s parent company sells the app.
The clock is now ticking for TikTok in the US.
On January 10, lawyers for the social media platform attempted to convince the Supreme Court justices to either nullify or temporarily stay a law that could lead to TikTok’s ban if its parent company ByteDance does not divest the app in the U.S. by January 19.
On January 17, the Supreme Court upheld the law, meaning that TikTok’s US operations must be sold to prevent a shutdown in a market with over 170 million users…
Kristoffer Tripplaar/Alamy
4) Universal Music Group plans US exchange listing; Pershing Square sells $500 million of UMG shares to facilitate this process.
Universal Music Group (UMG) announced on January 15 that Pershing Square Holdings, led by billionaire investor Bill Ackman, has requested a secondary listing of the music company on the US stock exchange.
Under their previous agreement, UMG will support an underwritten offer by Pershing Square to divest part of its shares by September 15, 2025.
This deal necessitates Pershing to sell at least $500 million worth of its UMG assets as part of the listing process…
5) Billie Eilish, Joni Mitchell, and Stevie Nicks among superstars headlining FireAid benefit concerts in Los Angeles.
Shelley, Irving Azoff, and the Azoff family have partnered with Live Nation and AEG Presents to organize two benefit concerts aimed at raising funds for communities impacted by the ongoing wildfires in Southern California.
Headliners for the FireAid concert include Billie Eilish & Finneas, Earth, Wind & Fire, Gracie Abrams, Green Day, Gwen Stefani, Jelly Roll, Joni Mitchell, Katy Perry, Lady Gaga, Lil Baby, P!nk, Red Hot Chili Peppers, Rod Stewart, Sting, Stephen Stills, Stevie Nicks, and Tate McRae. Notably, Dave Matthews and John Mayer will perform together for the first time.
Both concerts are scheduled for the same night – Thursday, January 30th – at the Intuit Dome and Kia Forum, both located in Inglewood, Louisiana…
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Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
