Reservoir acquires minority stake in China-based Outdustry and forms JV to acquire local music catalogs
New York-based Reservoir has struck a deal with China-headquartered industry services company Outdustry, which sees Reservoir become a minority stakeholder in the company.
The two companies have also formed a joint venture to sign and develop Chinese artists and songwriters, plus acquire local music catalogs.
This new investment in Outdustry builds on an existing sub-publishing partnership, announced in June 2020, in which Outdustry Songs became the exclusive sub-publisher in China for Reservoir’s roster of songwriters and catalog of copyrights.
Since this agreement, Reservoir says that it has seen triple-digit percentage increases in collections from the territory.
Reservoir says that Outdustry, which has direct deals at all major Chinese music services, “has created its own ecosystem to monetize the hundreds of millions of newly digital music consumers in the region”.
Reservoir adds that its investment in Outdustry extends its strategy to other emerging music markets and builds on its successes in China, and in India, where it signed multi-platinum rapper DIVINE and struck a JV with Gully Gang Entertainment in 2020.
According to Reservoir, the deal underscores its belief “in the growth potential” of these territories and “augments its 2020 entrance into emerging markets” via another joint venture with MENA-based music publisher PopArabia, led in a dual role by PopArabia Founder/ President and Reservoir EVP of International and Emerging Markets Hussain “Spek” Yoosuf.
Today’s news also follows the announcement that Reservoir has entered into an agreement with Roth CH II ($ROCC), a special purpose acquisition company, taking the first step toward becoming a publicly traded company listed on the Nasdaq.
The result of the deal is that Reservoir – via the new combined company, Reservoir Media Inc – will go public on the NASDAQ under the ticker “RSVR.”
The transaction gives the combined company an enterprise value of $788 million and is expected to provide approximately $246 million in gross proceeds to the firm.
“We are confident that expanding our partnership with Outdustry will build on our incredible success together to date and deepen our presence in emerging markets.”
Golnar Khosrowshahi, Reservoir
Reservoir Founder and CEO Golnar Khosrowshahi, said: “We are confident that expanding our partnership with Outdustry will build on our incredible success together to date and deepen our presence in emerging markets.”
“Outdustry joins PopArabia as one of our trusted partners on the ground in these emerging markets, expanding our footprint ahead of what is projected to be exponential growth.”
Spek added: “Outdustry joins PopArabia as one of our trusted partners on the ground in these emerging markets, expanding our footprint ahead of what is projected to be exponential growth.”
“Reservoir has exemplified all these things for over a decade, making this partnership a perfect alignment, while allowing Outdustry to take the next steps on our ambitious journey.”
Ed Peto, Outdustry
Outdustry CEO Ed Peto said: “At Outdustry we have always prided ourselves on our independence, our artist-first approach, and our belief in a better music industry no matter where we are in the world.
“Reservoir has exemplified all these things for over a decade, making this partnership a perfect alignment, while allowing Outdustry to take the next steps on our ambitious journey.”Music Business Worldwide
Denial of responsibility! Swiftheadline is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – firstname.lastname@example.org. The content will be deleted within 24 hours.