Music Has A New $200M Player

The music industry has a new $200 million player after The Music Acquisition Corporation priced its NYSE IPO Tuesday.

The Music Acquisition Corporation offered 20 million IPO units at $10.00 per unit to be listed on the New York Stock Exchange under the symbol TMAC.U. By the close of trading Wednesday the IPO units rose 5% to $10.50 with futures trading slightly higher early Thursday morning

A ‘Blank Check Company’

Led by former long-time Geffen Records President Neil Jacobson,  The Music Acquisition Corporation is a blank check company “whose sole purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. “

In other words, expect a flurry of deals focused on profit and extracting value.

There are four target music sectors of interest according to the SEC filing:

• Audio –  “We plan to explore potential target companies serving content creators, IP owners and consumers by unlocking new opportunities for content discovery and monetization. Our depth and breadth of relationships across the entire audio industry, including recorded music labels and music publishers, streaming platforms, podcasting platforms, voice platforms, agencies and other emerging platforms, position us to uniquely source and evaluate opportunities for potential targets in this sector.”
• Tech –  “The dramatic advancements in the music industry are largely driven by pioneering technology companies… Select verticals of interest include royalty free sample libraries (for production music), music catalog analysis and organization tools, data science and trend research companies, blockchain and other AI-driven platforms.”
• Social Media – “Platforms such as TikTok and Triller have provided new life to music, while their survival symbiotically depends on that of the music industry… We can offer a unique value-add to companies including but not limited to social media networking apps, social content platforms and online video sharing platforms.”
• Direct To Consumer – “Brands that have been able to adapt and adopt music as a key driver, both in consumer experience and partnerships, have found significant success in recent years. Examples include Beats by Dre and Peloton. We believe we can provide immediate value to any consumer-facing company with proprietary access to top-level music and artists, resources and connections within the industry and an ability to navigate, contact and execute music licenses.”

MAC is led by Chairman and Chief Executive Officer Jacobson and Chief Operating Officer Todd Lowen. The company’s Board of Directors includes Michael Levitt, Ben Silverman, and Tunde Balogun.

Citigroup Global Markets Inc. and Cantor Fitzgerald & Co. are acting as joint bookrunning managers for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,000,000 units at the initial public offering price to cover over-allotments, if any.