About a month after acquiring AI-based music analysis and classification company Musimap, song playback monitor Utopia Music acquired Nashville-based Lyric Financial.
Five-year-old Utopia Music has just announced the acquisition of 14-year-old Lyric Financial, not to be confused with Spirit Music Group owner Lyric Capital, which launched a $ 500 million catalog fund earlier this year. this month. Lyric Financial, meanwhile, offers “loans and lines of credit” to “clients who earn $ 100,000 or more per year,” according to its LinkedIn profile, having funded some 22,000 advances (with a cumulative value of 100 million dollars) to date, through its website.
Utopia Music, based in Switzerland, which brought in former EMI director Paul Stuart to take on the role of general counsel at the end of September, said Lyric’s operational framework will allow it to lead an expansion in the United States and to expand its âexisting industrial footprintâ. And Lyric Financial, for its part, is poised to gain “competitive advantage, strength and optimized positioning in the rapidly growing music technology market” as a result of the deal, the companies said.
Stakeholders also clarified that Lyric Financial should “continue to serve its existing customer base as a member of the Utopia family” – or continue to operate independently as a division of Utopia, it appears. The financial terms of the buyout were not publicly disclosed, but it should be noted that Lyric Financial raised $ 1.8 million via fundraising, according to Crunchbase.
Addressing his company’s latest purchase in a statement, Utopia Music founder and chairman of the board, Mattias Hjelmstedt, said in part: âWe are boosting the entire music industry by creating new sources of revenue, consolidating data, reducing the costs of diverse and deeply innovative services, and effectively removing the barriers and obstacles that have slowed down the industry for too long.
âThe acquisition of Lyric Financial is a key element in helping creators and artists get paid faster and allow more creators and artists to make a living from their art,â concluded Magine’s founder and co- founder of the Voddler group, Hjelmstedt.
Lyric Financial CEO Eli Ball added in part, âOur team has already made a lasting difference for creators and performers. Yet, by partnering with Utopia, we will strengthen our mission to help creators and artists around the world with revolutionary funding solutions. The Utopia platform and its superlative data asset puts us ahead of the pack. I couldn’t be more excited!
In other acquisition news, reports have suggested 300 Entertainment is exploring a possible $ 400 million sale, while Blackstone, by investing $ 1 billion in music rights, has secured a stake in Hipgnosis Song Management.