Five Music secures $100 million investment from parent company GoDigital Media

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Photo credit: Markus Winkler

GoDigital Media Group has officially injected $100 million into its Cinq Music subsidiary, which will use the capital to acquire the music intellectual property.

Several outlets recently reported on the $100 million cash injection for Cinq Music, although 16-year-old GoDigital has officially unveiled the development of a presentation last month. GoDigital describes itself as “a media and technology holding company engaged in the management and distribution of intellectual property rights through its operating subsidiaries”.

These operating subsidiaries include television network Latido Music, AdShare (a social media monetization service for rightsholders), artist advance platform Sound Royalties and, of course, Cinq Music, which operates as a record label. , a distributor and a rights manager. Five has grown 114% over the past year, according to GoDigital.

Keeping that last point in mind, GoDigital said in their presentation that they’ve put together the $100 million in question as part of Series D of Five, and the windfall follows an infusion of $20 million. for Five in 2017 and another $40 million contribution in August 2019.

The $20 million capital influx has enabled Cinq Music to reclaim the rights to several albums from TI, and top brass intend to spend this final installment on buying “music rights, both masters and publishing” as well as the “international expansion” of their business. Five’s current catalog includes holdings in works by Bad Bunny, Daddy Yankee, Sean Kingston and Janet Jackson.

Notably, given recent reports of a possible chill in the scorching catalog space, GoDigital Chairman and CEO Jason Peterson highlighted in a statement the perceived role of music rights as “a similar enduring asset to an annuity.

“Our continued ability to finance Cinq Music for its acquisitions is predicated on the fact that music rights are a durable asset similar to an annuity,” said the RDx Peterson, board member. “Across all of our business units over the past four years, GoDigital has invested over $350 million through multiple capital vehicles.

“Our 2019 Series C funding for Five acquired iconic Beluga Heights record label and artist Jason Derulo’s back catalog. Five is enjoying great success scaling its label, distribution and publishing capabilities while executing GoDigital’s proven business model for global rights management,” concluded the former board member of Five. administration of Merlin.

And in a personal statement, Five co-founder and president Barry Daffurn highlighted his company’s growing international presence.

“We are excited about what the future holds, being a preeminent partner to rightsholders in large, fast-growing markets around the world,” Daffurn said in part. “Today we have boots on the ground in 11 countries and territories, including the United States, Mexico, Colombia, Argentina and South Korea, with more to come.”

Notwithstanding the aforementioned indications of a potential slowdown in catalog purchases – in which many companies have invested billions of dollars since the start of 2020 – GoDigital’s Five Music capital infusion is a further reminder that the possible decline will put some time to materialize.

Warner Music, Kobalt and others are already gearing up to drop massive (extra) sums on song rights, for example, and just three weeks ago Björn Ulvaeus’ Pophouse Entertainment bought the entire catalog of Swedish House Mafia publishing and recordings.

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