Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE APRIL 15, 2021 Page 1 of 28 INSIDE Reservoir Leading Music Publishing • Tencent Music Funds Onto the US Stock Market Shakes Up Leadership With BY ED CHRISTMAN New CEO Reservoir Holdings, which owns Reservoir Media, is In the end, after investment banking, legal fees • Warner Music, going public on the Nasdaq stock exchange through and other expenses, Reservoir will be left with $246 Spotify Partner Up for Original Podcasts a reverse merger with a special purpose acquisition million in gross proceeds from the transaction. company (SPAC) in an apparent move to gain liquid- The company’s current shareholders, including the • A Year Later: ity and a lower cost of capital. This marks the first Khosrowshahi family, will roll over all their Reservoir Billboard Revisits standalone publishing company to go public on a U.S. equity into the new company, giving it an enterprise Young Artists Whose Careers Were stock market. value of $788 million. Derailed by COVID Reservoir will form a business combination with That means that the Reservoir shareholders will Ross CH Acquisition II (currently trading on Nasdaq likely have a lock-up period — maybe 180 days — be- • Fyre Festival Ticket under the symbol ROCC) and when the deal is com- fore they can cash in any of their shares. In the mean- Holders Awarded $7,220 in Class pleted sometime in the third quarter, the combined time, the company has an implied pro-forma equity Action Settlement company will be named Reservoir Media but with value of $740 million at $10 a share, according to the a new ticker, RSVR, according to an announcement announcement, which further implies it also has $48 • Tiësto Starting issued by the music publishing firm Wednesday (April million in net debt. ‘New Life in Las Vegas’ With 3-Year 14) after the close of trading. This deal will provide Reservoir with a lower cost of Zouk Group Deal Golnar Khosrowshahi, founder & CEO of Reser- capital in the fast-paced, high-stakes music asset trad- voir, will lead the new combined company, with her ing world, allowing it to follow the Hipgnosis busi- current executive leadership team of president and ness strategy of finding music assets for acquisition MARKET WATCH COO Rell Lefargue and CFO Jim Heindlmeyer. and then tapping the public markets to fund the PAGE 25 Ross CH Acquisition II is bringing $115 million to deals. It also provides a way for current Reservoir SONGWRITERS Reservoir’s public offering as part of the deal. Some shareholders to eventually realize some of the value & PRODUCERS institutional investors including Caledonia have been they have created by shares they will own in the new CHARTS lined up as anchor shareholders, which will bring in vehicle. But, initially, the Reservoir stock liquidity will PAGES 26 - 28 $150 million in gross proceeds. (continued) TOTAL IMMERSION ESSENTIAL ANALYSIS of the latest business topics and trends formulated to give industry players the competitive advantage in a rapidly changing market. EXCLUSIVE QUARTERLY REPORTS that deliver in-depth, holistic reporting; case studies; and custom data designed to serve the industry. A DEEP DIVE LIBRARY stocked with intelligence on fan data, SUBSCRIBE TO BILLBOARD PRO FOR song catalog sales, TV synchs, Africa’s burgeoning music ACCESS TO NEW REPORTS business and the gaming industry’s embrace of artists. AND THE ARCHIVE ACADEMY AWARD© NOMINEE BEST ANIMATED FEATURE • BEST SOUND BEST ORIGINAL SCORE TRENT REZNOR • ATTICUS ROSS • JON BATISTE © 2021 DISNEY/PIXAR Page 3 of 28 IN BRIEF be constrained by only having a float of $115 “We are thrilled to be partnering with Res- million worth of shares. ervoir and its exceptional leadership team,” Tencent Music “Today we have taken an important step according to a statement issued by Roth Cap- forward in Reservoir’s evolution to fully ital and Craig-Hallum, the sponsors of the Shakes Up realize that vision through our partnership Roth CH II. “Reservoir has built an outstand- with Roth CH II,” Khosrowshahi said in a ing collection of hit songs and soundtracks Leadership With statement. “Our dedication to our songwrit- in both its music publishing and masters ers and artists and their music is at the heart businesses, and has a unique and differenti- New CEO of everything that we do, and this path to ated value enhancement model that drives growth supports our promise to service our highly attractive returns. We are excited BY TATIANA CIRISANO clients, enhance value, and build a quality about Reservoir’s strong cash flow generat- catalog. I am immensely proud of what we ing capabilities in a growing industry with hinese music and entertainment have built alongside President & COO Rell significant tailwinds. The portfolio is fully giant Tencent Music Entertain- Lafargue, and our incredible team whose ex- diversified in all genres of music with some ment (TME) announced a slate of cellent skills, high-touch client service, and of the most iconic hits of the past hundred leadership changes today (April outstanding track record is unmatched.” years. We look forward to Reservoir pursuing C15), including promoting Ross Liang to Reservoir’s catalog includes music by future organic growth and acquisitions in this CEO and installing outgoing chief Cus- 2 Chains, A Boogie Wit Da Hoodie, A-Ha, exciting sector under consolidation.” sion Pang as executive chairman of TME’s Ben Harper, Big & Rich, Bob Crewe, David The board of directors of Reservoir and board. Guetta, Evanescence, Hoagy Carmichael, Ja ROCC have unanimously approved the Liang formerly served as vice president of Rule, John Denver, Kurt Elling, Leon Ware, transaction. The transaction will require the Tencent Holdings Limited, where he over- Lil Jon, Migos, Molly Hatchett, Rickie Lee approval of the stockholders of ROCC and is saw the company’s owned online music and Jones, Scott Storch, Scott Stapp, Seether, subject to other customary closing condi- social platforms including QQ and Qzone; Sheryl Crow, Stewart Copeland and Willie tions. and prior to that, general manager of QQ Mitchell. Roth Capital Partners, LLC and Craig- Music. In his new role, Liang will oversee The company says it has deployed over Hallum Capital Group LLC are acting as QQ Music, Kugou Music, Kuwo Music, $400 million in catalog acquisitions — placement agents for the PIPE transaction WeSing and long-form audio businesses. including recently acquiring the catalog of with the anchor share holders while Gold- Pang is replacing Dowson Tong, who is indie music publishers Shapiro Bernstein — man Sachs is acting as financial advisor to resigning from all his roles at the company since its inception, and spent another $100 Reservoir. Legal respresentation for the including chairman of the board, chairman million in frontline creative signings. The music publishing firm was handled by Paul, of compensation committee and all his roles company says it also owns 26,000 sound Weiss, Rifkind, Wharton & Garrison LLP as a director or an officer. Stepping in to lead recordings, and its management business while Loeb & Loeb LLP is serving as legal the compensation committee will be James handles over 60 clients. advisor to Roth CH II. Gordon Mitchell, the company said. AUTHORITATIVE INTELLIGENCE. DELIVERED DIGITALLY. CLICK HERE FOR FREE DELIVERY DIGITAL NEWSLETTERS BILLBOARD COUNTRY UPDATE APRIL 13, 2020 | PAGE Page 4 5 OF of 1928 ON THE CHARTS JIM ASKER [email protected] IN BRIEF SamHunt’s Southside Rules Top Country AllA oflbu these changesms; are Bretteffective imme Y- oungUniversal ‘Catc Music Grouph from’-es 10% to Fifth 20%. Music Airplay Podcasts provide an opportunity to diately. Tencent (the parent of TME) is also a 10% unlock value for artists and songwriters by “Ross’ provenLea trackder; record in Travis building shareholderDenning in Warner MusicMakes Group and Historydelivering fresh and unique stories to music successful online entertainment platforms owns 9.1% of Spotify. to fans across the globe. We look forward and social ecosystems, combined with his to working with Spotify to experiment and Sambreadth Hunt of’s experience second studio delivering full-length, strong and first re- in over five years, Southside sales (up 21%) in the trackingdrive week. growth On Country in podcasting.” Airplay, it hops 18-15 (11.9 mil- (MCAsults throughNashville/Universal successful Music expansion Group Nashville), into new debuts Warner at No. 1 on Billboard Music,’s lion audience impressions, upWMG 16%). already produces a slate of pod- Topbusiness Country areas, Albums makes chart him dated ideally April suited 18. In its to first week (ending April 9), it casts including Duran Duran’s WHOOSH!, earned 46,000 equivalent album units, including 16,000 in album sales, ac- TRY TO ‘CATCH’ UP WITH YOUNG Brett Youngachieves his fifth consecutive cordingaccelerate to Nielsen our evolution Music/MRC into Data. an all-in-one Spotify Partnerand total Country Airplay No.the 1 asofficial “Catch”Prince (Big Machine podcast Label in partnership Group) ascends onlineSouthside music marks and audioHunt’s entertainment second No. 1 on des the- with2-1, increasingthe icon’s 13%estate, to 36.6Robert million Plant impressions.’s Dig- charttination and in China,” fourth top 10.said It Pang,follows who freshman has been LP Up for Original gingYoung’s Deep, the firstGood of six Ol chart Grateful entries, Dead “Sleep- With- MontevalloTME’s CEO, which since arrived mid-2016 at the and summit a member in No - castout and You,”The reached Rhino No. Podcasts 2 in December telling stories 2016. He vember 2014 and reigned for nine weeks. To date, followed with the multiweek No. 1s “In Case You of the board since 2014. of legends like Aretha Franklin and The Montevallo has earned 3.9 million units, with 1.4 Podcasts Didn’t Know” (two weeks, June 2017), “Like I Loved millionAdded in album Liang: sales.