This week, Chord Music Partners secured over $2 billion in investable capital with another $1 billion+ expected, marking a major milestone for the UMG-backed music rights investment vehicle.
Meanwhile, Universal Music Group CEO Sir Lucian Grainge fired back at Drake’s defamation lawsuit, calling the rapper’s claims “ridiculous” and “groundless” while confirming Universal’s massive investments in Drake’s career.
Elsewhere, Kobalt inked a direct licensing deal with Spotify in the US, joining Universal and Warner in bypassing the controversial audiobook ‘bundling’ payment structure.
Also this week, Tencent Music revealed its ‘Super VIP’ subscriber tier has reached 15 million users, driving significant revenue growth in China’s streaming market.
Here are some of the biggest headlines from the past few days…
1. EXCLUSIVE: CHORD MUSIC PARTNERS RAISES $2 BILLION+ IN INVESTABLE CAPITAL… WITH ANOTHER $1 BILLION+ ON THE WAY
Chord Music Partners has raised over $2 billion in investable capital via a funding round due to close in October, with sources expecting an additional $1 billion to $2 billion before completion. The round has been fueled by equity investments from family offices and pension funds across Europe and the US, with Universal Music Group maintaining its ~26% share through an incremental €30 million investment.
Searchlight Capital Partners has been confirmed as a new investor. MBW understands that Searchlight has contributed $400 million to Chord in equity investment.
Chord has been “deliberately quiet” about deals over the past year, though nine-figure agreements have leaked including a Morgan Wallen acquisition reportedly worth north of $200 million. The company’s portfolio includes music from The Weeknd, Lorde, David Guetta, and other major artists, with publishing rights administered through UMPG and recorded music through Virgin Music Group… (MBW)
2. UMG’S SIR LUCIAN GRAINGE REFUTES ‘RIDICULOUS’ CLAIMS IN DRAKE LAWSUIT, CONFIRMS UNIVERSAL BOUGHT STAR’S RECORDED MUSIC AND PUBLISHING CATALOGS
Universal Music Group CEO Sir Lucian Grainge has filed a sworn declaration pushing back against Drake’s attempts to force him to provide documents in the rapper’s defamation lawsuit. Grainge describes the artist’s claims in that suit as “farcical” and “groundless.”
In the declaration, filed on August 14 in the US District Court for the Southern District of New York and obtained by MBW, Grainge states that he “had never heard the recording ‘Not Like Us,’ nor ever saw the corresponding cover art or music video, until after they were released by Interscope Records.”
Adds Grainge: “Whilst, as part of my role, I certainly have financial oversight of and responsibility for UMG’s global businesses, the proposition that I was involved in, much less responsible for, reviewing and approving the content of ‘Not Like Us’, its cover art or music video, or for determining or directing the promotion of those materials, is groundless and indeed ridiculous…”… (MBW)
3. KOBALT INKS DIRECT LICENSING DEAL WITH SPOTIFY IN THE US
Spotify and Kobalt have signed a direct, multi-year licensing agreement covering the United States. The agreement marks Spotify’s latest direct deal with a prominent music publisher and moves its agreement with Kobalt beyond the traditional CRB model in the US.
This means that Kobalt’s direct deal supersedes the audiobook ‘bundling‘ payment structure that, starting in March last year, saw Spotify dramatically cut the rate of mechanical royalties paid to publishers and songwriters in the US.
Since then, Universal Music Publishing Group and Warner Chappell Music have signed direct licensing deals with Spotify that override the CRB bundling discount. Sony Music Publishing is the largest outstanding player on SPOT’s list of potential direct licensing deals. MBW understands that Spotify is currently in discussions with the company about a new deal.
Kobalt claims to be the world’s largest independent music publisher, serving over 1 million songs across 10 global offices… (MBW)
4. TENCENT MUSIC NOW HAS 15 MILLION ‘SUPER VIP’ SUBSCRIBERS
Tencent Music Entertainment revealed its premium ‘Super VIP’ tier has reached 15 million subscribers, representing 12% of the company’s total 124.4 million paying music users and driving significant revenue growth in Q2 2025. The milestone represents strong growth from 10 million SVIP subscribers reported in Q3 2024, with users paying approximately RMB 40 ($5.58) monthly compared to the standard RMB 8 ($1.12) subscription.
TME’s music subscription revenues reached RMB 4.38 billion ($611 million) in Q2, representing 17.1% YoY growth, while monthly ARPPU increased 9.3% YoY to RMB 11.7 ($1.63). The SVIP tier offers premium sound quality, exclusive digital albums, priority concert ticket access, and collectible ‘star card’ series with artists like JC-T, Silence Wang, and aespa.
Despite total monthly active users declining 3.2% YoY to 553 million, TME’s focus on premium monetization through SVIP memberships has driven overall profitability. The company’s total revenues reached RMB 8.44 billion ($1.18 billion) in Q2, up 17.9% YoY, with music operations now accounting for 81% of total quarterly revenues compared to 76% in the same period last year… (MBW)
5. WARNER MUSIC GROUP JUST WROTE DOWN THE VALUE OF EMP BY $70M. IS A SALE ON THE CARDS?
Warner Music Group may be preparing to sell EMP Merchandising, the European rock and metal merchandise e-retailer it acquired for USD $180 million in 2018.
That’s according to clues in WMG’s latest earnings press release and quarterly SEC filing, spotted by MBW.
The quarterly filing, covering the three months ended June 30, 2025, reveals a USD $70 million pre-tax impairment charge on “long-lived assets associated with certain of [WMG’s] non-core e-tailer operations” – following what Warner describes as a “triggering event”.
In previous Warner annual filings, only one subsidiary is referred to as an “e-tailer”: EMP…. (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
