Home Uncategorized Breaking: $14 Billion Spotify Acquisition Happening Next Week…

Breaking: $14 Billion Spotify Acquisition Happening Next Week…

SHARE

[ad_1]

<!–

You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.


Follow Us



DMN on Feedburner
divider image

danielek

Spotify is preparing to be acquired at a price tag ‘north
of $14 billion,’ according to multiple sources now speaking
with Digital Music News.  Signatures and final approvals
are ‘exceptionally close,’ with an announcement carefully
planned for exactly one week from
now
, according to one dealmaker.

The buyer is not being disclosed, though the Wall Street
Journal is already preparing a front page story for
next Wednesday morning.  The article will
symbolically only be available to paying subscribers.

The paid-only symbolism is part of a massive shift in
philosophy by both Spotify, the major labels, and its
soon-to-be-named mega-buyer.   The deal comes amidst
cantankerous negotiations between Spotify and the major
recording labels, with the CEOs of both Universal Music Group
and Sony Music Entertainment applying heavy pressure on Spotify
to eliminate their free access tier.  Spotify initially
resisted those moves, but is now softening its stance as
part of an artist-friendly, three-way deal
involving YouTube and its various music properties
.

According to the details of this momentous plan, shared under
strict confidence with Digital Music News, YouTube has agreed
to stop showing free music videos entirely if Spotify agrees to
close its free access tier at the same time.  The
unilateral move will make listening to free music far more
difficult for casual music fans, and millions of Spotify
and YouTube listeners will be shocked to find free streaming
music completely shut off, effective next
Wednesday.

The plan is expected to mint several million paying subscribers
overnight, and substantially change the music industry balance
sheet in the process.

“We’re finally making streaming fair for every musician and
rights owner, and I’m happy that everyone can equally enjoy
the spoils of our years of hard work,” Ek stated, in a quote
approved for the Wall Street Journal.  “I hope our
friends over at Pandora will follow our example.”

In parallel with those efforts, Recording Industry Association
of America (RIAA) CEO Cary Sherman is planning
to announce a bombshell deal with the Russian cultural
ambassador Viktor Petrov that will
effectively close 99% of illegal torrent and mp3 download sites
in the country.  That, coupled with
an initiative by US Department of Homeland Security
special advisor Douglas Stamper to block
virtually all illegal music sites worldwide, will finally
deliver the ‘paid only’ environment envisioned by Universal
Music Group exiting executive Rob Wells.

The deal will also feature a number of artist-friendly aspects,
part of a ‘Sustainable Streaming’ core of principles
arranged in round-the-clock sessions just outside of
Stockholm.  As part of the buyout, Spotify CEO
Daniel Ek has reportedly insisted that at
least half of the $14 billion-plus payout be paid directly to a
musicians fund, with Taylor Swift a
symbolic beneficiary.  Billionaire Sean
Parker
, a high-ranking Spotify executive and
co-founder of the original Napster, has also committed to
donating his payout of approximately $1.41 billion to create a
pro-bono legal and accounting fund designed to help artists
locate and receive streaming royalties from their labels.

 

More as this develops.  Image by Official LeWeb
Photos, licensed under Creative Commons Attribution 2.0
Generic.

 

blue bar background graphic

Comments (12)

  1. Anonymous

    Wednesday, March 25, 2015

    “The buyer is not being disclosed”

    Perhaps it’s Jay Z, again? :)

  2. Anonymous

    Wednesday, March 25, 2015

    “exactly one week from now”

    Let’s see, today it’s March 25. Which means… :)

  3. Anonymous

    Wednesday, March 25, 2015

    Trying to beat @Lefsetz to the April Fool’s punchline?

    1. Anonymous

      Wednesday, March 25, 2015

      What did he do?

  4. McQuade

    Wednesday, March 25, 2015

    I see some House of Cards fans here

  5. Anonymous

    Wednesday, March 25, 2015

    “The unilateral move will make listening to free music
    far more difficult for casual music fans, and millions of
    Spotify and YouTube listeners will be shocked to find free
    streaming music completely shut off”

    I can see how you came up with that scenario. :) But not even that would be
    enough to make people pay again.

    I had some similar thoughts yesterday though, and my
    conclusion was that you would have to hide not only
    YouTube and Spotify but also Facebook, Twitter, Gmail and
    Instagram behind a global paywall
    .

    That might work: Users would not go back to the Pirate Bay
    (as they would in your scenario) since they would need the
    social networks as well. And YouTube would be as viral as
    ever behind the global paywall…

    Feel free to use the concept in March 2016…

  6. dave vz

    Wednesday, March 25, 2015

    Good one! Happy April Fools Day.

  7. AHA HAHA HA

    Wednesday, March 25, 2015

    Next Wednesday huh.. April 1st?

  8. Anonymous

    Wednesday, March 25, 2015

    Ain’t nothin artist friendly in the music biz…

  9. Adam

    Wednesday, March 25, 2015

    Waka waka. Funny joke.

  10. pbody

    Wednesday, March 25, 2015

    It appears we are going back to the days of major labels
    controlling everything. Its like we went in one big loop.
    Now artists will get .25% again while execs buy multiple
    mansions in Beverly Hills. Musicians will get pushed and
    then thrown out like they did in the past.

  11. Anonymous

    Wednesday, March 25, 2015

    You guys can’t do this shit

  1.  


window.NREUM||(NREUM={});NREUM.info={“beacon”:”beacon-2.newrelic.com”,”licenseKey”:”a1c8c3afa3″,”applicationID”:”3366246″,”transactionName”:”MVIEMREHWBIAAUBeXggYJwYXD1kPThFdWVYKUg==”,”queueTime”:0,”applicationTime”:711,”atts”:”HRUHR1kdSxw=”,”errorBeacon”:”bam.nr-data.net”,”agent”:”js-agent.newrelic.com/nr-515.min.js”}

[ad_2]

Source link