Lauren Apolito

Billion-dollar PE buyouts are ramping, just see today's Squarespace news. Investors in media x agency deals should pay attention... Global deal activity is up 24% for 2024 YTD, with a total deal volume of $726B. Could be the beginning of a cyclical M&A rally, since deal volume was super depressed over the past couple years... ...and investors need to put money to work! Below are some recent public-to-private highlights, including a large media co deal where I did a deep analysis 👇 May 13 • Permira buying website builder Squarespace • Went public in 2021, closed 1st trading day at $5.9B valuation • $6.6 billion May 6 • EQT Group buying US digital consultancy Perficient • EQT also backs UTA, which has grown through M&A • $3 billion April 2 • Silver Lake buying diversified media co Endeavor • WME / UFC parent co TKO Global will stay public • $13 billion April 1 • Advent International buying payments processor Nuvei • Nuvie backed by celeb Ryan Reynolds • $6.3 billion Similarities across these recent deals include... - founder / CEOs staying on post deal - belief that targets are undervalued in public mkts - desire for more flexibility to grow, do M&A, and drive ent value for new owners That last point is key, as I think there's a strong desire to grow through M&A in a market where there are many sellers who can get picked up at good/fair prices VS the crazyness of 2020/2021. This is timely because... Last month I wrote about public-to-private deal dynamics in my Silver Lake / Endeavor analysis, check it out here --> https://lnkd.in/gtprBx7U I'm also working on an active client deal with similar characteristics, and it's important to know where capital is flowing, and why. Are you all seeing a similar trend?? -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open. #media #agency #creatoreconomy

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After a whirlwind two decades of a corporate career – which has spanned a traditional management consulting firm, a Fortune 500 toy company, a world class entertainment agency, and a growth equity fund, I’m excited to officially share that I’m striking out on my own with Shruti Sehgal. Together, we’re proud to launch The Moonshot Company – a new kind of strategic consultancy, representing high-growth talent, brands, and investors looking to accelerate their cultural and commercial success from a place of authenticity, creativity, and intent. The Moonshot Company will specialize in integrated brand and growth strategies–culled from our prior executive careers in consumer, entertainment, media, finance, politics, and PR. Throughout my professional life, I often found myself at the center of consumer industries undergoing a major landscape shift. Shifting consumer behavior, the proliferation of social media, digitally-native consumption, and revamped business models have underpinned every business I have been fortunate to be a part of. Winter has always been coming. And it is through that lens that I learned a lot about myself as an executive. My curiosity has always found that change exhilarating - and I am particularly adept at spotting through lines and opportunity amidst a constant state of flux. Rapidly transforming industries don’t scare me, stagnation does. And yet, I have always felt a natural tension between building these industry-specific skills and the freedom to add my own interdisciplinary instincts and perspectives to bear, especially on someone else’s platform. But as the world has changed, so have I: this very tension I once thought frustrating is now a reason for being.  If I could go back in time, I would tell my younger self that my own diverse range of experiences and multicultural consumer lens always has been, and will always be, as instructive to my success and growth as anything else. The future of business and culture requires differentiated voices and leaders who can bring a much wider set of skills and a unique blend of deeply-lived experiences – both personal and professional – to achieve transformational outcomes for clients, and this is the foundational vision of The Moonshot Company. Simply put: this platform didn't exist, so we built it. As mothers, former senior executives, culture-obsessed consumers, and South Asian women – Shruti and I are thrilled to put our skills, networks, and novel strategies to work for clients who share our values, and whom we feel uniquely compelled to deliver Moonshot-level results for. If our vision and founder story resonates with you, please reach out. And as we embark on this new journey, I’d love to hear more about your own Moonshot below. 🚀 💫

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“MEG” investor Alignment Growth bought a minority stake in unscripted producer Wheelhouse. The M&A and talent growth plan is simple, and compelling. Let’s break it down… WHEELHOUSE OVERVIEW • Diversified prod and media co • Founded 2018 by unscripted vet Brent Montgomery • Brent previously founded Leftfield Ent, sold to ITV in 2014 for > $360M • Prod Co’s incl Spoke Studios, Campfire, Butternut, Wheelhouse UK, DNA • Prod Partnerships w/ Jimmy Kimmel's Kimmelot and Chef David Chang's Majordomo Media WHEELHOUSE DIVISIONS • Entertainment – Prod co comprised of 6 studios, focus on unscripted • Wheelhouse Labs – brand mktg services incl social strategy, branded content, IM • Wheelhouse DNA – digital arm incl podcasts, video strategy, talent mgmt co Additive Creative • Houses – 4 event spaces in NY / LA M&A + CAP MARKETS ACTIVITY • Initially financed by Brent in 2018 via earnings from ITV sale, est in mid 8 figures • Bought minority stake in branded content co Portal A in 2019 • AG investment is 1st outside funding round ALIGNMENT GROWTH • Growth stage investor in media & entertainment, gaming, and “MEG enablers” • Raised $360M in 2023 • Founded 2021 by Jeff Bewkes (former Time Warner CEO) and Kevin T (former Warner Bros CEO) • Adds ops / deal / strat experience to portfolio cos via Fortune 500 exec team experience • Investments incl fever, build a rocket boy, crunchbase, spyglass media INVESTMENT • Led by Alignment Growth • Minority stake, terms undisclosed • AG partner Jeff Bewkes joins Wheelhouse board • UOF: attract top industry talent, grow through M&A MY TAKEAWAYS... CEO Brent and his Wheelhouse team are some of the world’s best unscripted producers. They have much momentum w/ buyers (20 sold shows in 2023!), and see the chance to work with bigger talent names, more often. This would allow WH to sell even more shows at higher budgets. And to help increase their content throughput, they need more prod teams, and fast. To that end, there’s likely many production co’s who don’t have the buyer access that WH does, but have teams and capabilities that can be bought at good prices while the TV / streaming industries consolidate. And now WH has the funds to execute against this 2-pronged strategy, and quickly. If they can stay focused in this lane, I think they’ll do quite well. To the above point… My guess is 90% of profit comes from the sale of unscripted series to TV / streaming. Unclear if the other biz lines are breakeven and / or what their path to profitability is. Makes me wonder how much longer those other divisions will be resourced by Wheelhouse. Growth comes from ruthless focus. The real money here seems to be growing the unscripted production biz. Disclosures: I’ve hosted events at Wheelhouse spaces, and have advised Portal A on various projects. -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, creator economy. My DMs are open. #media #agency #creatoreconomy

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Range Media Partners just raised big $$ from Liberty Global, Wildcat Capital Management. It's an M&A warchest so they don’t fall behind their peers.  Let’s break it down… BACKGROUND ON RANGE • Mgmt and prod co founded in 2020 by Peter Micelli and other top agents from CAA / WME / UTA • Goal = extend beyond trad film / TV representation • Has expanded into music, sports, gaming, digital, music pub M&A + CAP MARKETS HISTORY • Merged with film / TV prod co Automatik in Jan 2023 • Bought upstart athlete mgmt co Stoked Management Group in Sep 2023 • Existing investors incl Steve Cohen’s Point72 Ventures and A+E Networks (also has prod deal) NEW INVESTMENT • Last week closed significant minority investment by John Malone’s Liberty Global, TPG founder’s Wildcat Capital, and family entertainment co Playground Productions • Former CAA film finance exec Rick Hess, and The Forest Road Company were also involved (either as investors or advisors, can’t tell exactly from press release) • Use of Funds: M&A, scale in US, int’l growth, add more talent rep and prod services What you need to know about this deal 👇... It's not surprising when you consider all the other fundraising and M&A amongst Range’s peers in talent representation.  The influx of capital and high dealmaking volume is driven by a belief that outsized returns will go to rep firms who are fastest to scale, in a winner-take-most market. Because scale makes it easier to sign more talent clients, work with the largest brand marketers, hire the best talent agents and managers, package up the largest Hollywood projects, and launch the most exciting new talent-led ventures. Particularly in a world where scaled access to audience (which talent and influencers bring in a post ATT world) is the top driver in capturing share of high-growth IM spend, which is est at $7B in 2024, up 15% YoY. So it’s a race to the top. And that race is being fueled by large M&A war chests from big investor backers… Companies to watch here are: - Crestview-backed Gersh (just bought A3’s digital team) - Coral Tree-backed Loaded (just bought GG Talent) - Providence-backed Wasserman (13 deals in 2 years) - TCG-backed Night (just bought LFM and Roost Podcast Network) - The big 3: CAA, UTA, Endeavor And after last week, I expect Range Media to ramp up its acquisition activity. Particularly in athlete and digital-native representation. Curious to see what they do next with the $$. Will definitely add them to our buyers list as we bring more deals to market. —- I’m the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open. #media #agency #creatoreconomy

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UTA just promoted 24 new partners. What's driving this? Promotions can be part of a retention strategy as competition for talent, and their reps, heats up. Particularly when new firms like Range Media Partners, which was the result top agent defections from the Big 3 Hollywood agencies in 2020, are growing fast and raising growth capital (see my analysis 👇). Some questions worth asking... - How is the agency's employee retention rate trending? - How does the % of promotions compare to prior years? - What agency depts are seeing more promotions? e.g. fast-growing areas like digital? - What are the benefits of being a partner? - What type of commitment is required from partners, if any? - How does all this compare to peer agencies? Many talent reps are thinking through decisions about staying VS leaving at bigger co's, starting their own firms, staying independent, and more. This is important info to track. For both those starting out their agency careers, and more seasoned agency execs thinking about their next career step. #media #agency #creatoreconomy

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Where can a large PE fund write a $100-150M check into the creator economy, and get good ROI? That’s a question I’m hearing more and more often. I have some ideas, but honestly I think that’s a challenging proposition at this stage of the market. It’s prompted me to repost my analysis of creator x media fundraisings. 👉🏼 https://lnkd.in/gF3EJSEY What do you think? Where can a check of that size solve a market problem, and generate good return? — I’m the founder of RockWater Industries. We do m&a and strategy advisory for media, agencies, and crestor economy. My DMs are open.

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“It’s official: Blackstone is about to become the new owner of Hipgnosis Songs Fund. Blackstone’s USD $1.584 billion bid for the UK-listed music company yesterday (July 8) won overwhelming approval amongst HSF shareholders who voted at a Court Meeting and General Meeting. The process saw 99.97% of the Scheme Shares voted by HSF shareholders approve the Blackstone deal. Blackstone needed at least 75% of voting shares to get the deal over the line.” “The financial press last month speculated that certain hedge funds — who held enough HSF stock to prevent Blackstone from reaching the 75% threshold — might effectively ‘block’ the sale. In the end, that didn’t come to pass. According to the FT, hedge funds that owned shares in Hipgnosis Songs Fund included TIG, with a 14% stake; Glazer Capital, with around 8%; Kryger Capital, with 6.6%; and Sand Grove Capital Management, with around 6%.” Read the full article for more: #Hipgnosis #HSF #Blackstone #HipgnosisSongsFund #HSA #HipgnosisSongsAssets #Songs #MusicPublishing #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz #Creators #Songwriters

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Paying out an additional £6 million (approx. USD $7.7 million) in royalties from online services - “UK-based royalty collection society PRS for Music says it will be paying out an additional GBP £6 million (approx. USD $7.7 million) in royalties from online services to songwriters and composers annually, thanks to a reduction in its administration rate. The collection society said it’s reducing its admin rate on multi-territory online (MTOL) royalties by 20% – from a 10% rate to an 8% rate – as a result of the CMO “surpassing its targets, delivering historic distributions and revenues, and becoming a billion-pound society.” Announced at its 2024 Annual General Meeting (AGM) today (June 4), PRS estimates the reduction will see £1.5 million more paid out to members in each of its quarterly royalty distributions starting from October this year.” #PRS #CMOs #UK #MusicRoyaties #Songwriters #Composers #MusicPublishing #Music #MusicBusiness #Musica #MusicIndustry #Musique #Musik #MusicBiz

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Wow. Sony Pictures (with Apollo Global) might acquire Paramount (Paramount Pictures, CBS, MTV, Nickeldoeon, Showtime, Comedy Central, CMT, Flix, PopTV, The Movie Channel, SmithsonianTV, Nickelodeon Animation, TV Land). This is not a done deal, but is not a rumor. Wow. Just to be clear David Ellison's (son of Larry's Ellison) Skydance Media is still in talks with Paramount Global. Sony/Apollo now join them with deeper pockets. Paramount Global: Wikipedia: https://lnkd.in/gijAAr36 Variety: "Paramount Global to Pursue Simultaneous Talks with Sony/Apollo and Skydance as M&A Drama Drags On. Warren Buffett confirms Berkshire Hathaway has sold its Paramount shares: 'We lost quite a bit of money'" Variety: https://lnkd.in/gWz5yrfs #streamingwars #mna #industryconsolidation #mergersandacquisitions

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A class action lawsuit claims SiriusXM misleads consumers by adding a "US Music Royalty" fee to its advertised subscription prices, increasing costs by 21.4%. The suit argues that no other music services charge separate royalty fees and that these should be included in the advertised prices. This fee, shown as "plus fees and taxes," adds $5.13 to the $23.99 Sirius Platinum plan, generating significant revenue. Plaintiffs contend the fee is a core business expense misrepresented as a government-mandated charge. They seek to include this fee in advertised prices and seek over $5 million in damages. Similar lawsuits are ongoing in Oregon and New York. https://lnkd.in/g_Wxf_Cn #SiriusXM #musicbusiness #musicindustry

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Paramount's Q1 earnings performance highlights both opportunities and challenges within the dynamic #streaming landscape. Most notably making recent headlines, the potential merger with Skydance suggests a strategic repositioning, aiming to strengthen Paramount's portfolio with high-quality content that could enhance its competitive stance in a crowded market and enhance Paramount's capabilities in producing and offering blockbuster films and acclaimed TV series on Paramount+. This move is a strategic effort to amplify Paramount's content offerings in both traditional and streaming formats, potentially improving its market share and appeal to a diverse viewer base. The recent introduction of international ad-tier subscriptions broadens Paramount's market reach outside of the U.S., attracting cost-conscious consumers with more accessible price points and tapping into new ad revenue streams. Introducing ad-tiers will capture global markets, reaching new demographics and analyzing consumer engagement habits. By integrating ads, Paramount will build valuable partnerships with advertisers looking to reach international audiences while increasing its global footprint. A key emphasis on providing original content and #livesports such as The Masters Tournament and National Women’s Soccer League are drivers of subscriber growth and consumer engagement on streaming platforms. The company's ability to enhance its original programming and secure compelling live sports rights will be decisive in its efforts to compete with industry giants and attract a global audience, ultimately improving its bottom line. Additionally, Bob Bakish, Paramount CEO, is stepping down today, signaling a pivot in Paramount’s overall corporate strategy and governance. New leadership may bring a different perspective on addressing the challenges of digital transformation in the #entertainment industry as we move away from traditional #cable and legacy media. This change could catalyze a more aggressive push into streaming and technology, and an increase in direct-to-consumer services, areas where Paramount must evolve to remain competitive with streaming giants like Netflix, Hulu and Prime Video & Amazon Studios. #LITrendingTopics #Q1Earnings #Streamers #Content #CordCutting https://lnkd.in/gt6_nFWN

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Is Paramount's Tech Transformation Just a Pipe Dream? In the ever-evolving landscape of media, David Ellison’s announcement about transforming Paramount into a tech powerhouse stirred quite the conversation. Including by me: https://lnkd.in/eBsi2xbi But as we dive deeper, several challenges emerge, casting shadows of doubt over this ambitious pivot. #1. Financial Feasibility With Paramount grappling with substantial debt and pressing financial obligations, notably hefty NFL payments, the costs of attracting top tech talent become a significant concern. Can Paramount realistically afford this tech overhaul amidst economic uncertainties and a struggling stock? The talent war isn't won on ambitions alone, especially when competitors like Google offer more stable havens. #2. Creator vs. Coder Paramount’s tech ambition, while necessary, seems at odds with maintaining the creator-friendly environment Ellison dually promised. In an era when interest rates have climbed, balancing tech innovation with creative freedom is a tightrope walk. Remember, even Netflix, once a haven for creators with its blank checks during #ZIRP, is tightening its purse strings. How can Paramount navigate these waters without the cushion of a tech giant's capital or rising stock prices? 3. Building vs. Buying Tech Infrastructure David Ellison’s plan for Paramount involves a substantial commitment to developing in-house tech capabilities, focusing on cloud services, AI, user interfaces, recommendation algorithms, and ad-serving technologies. This approach aims to differentiate Paramount from competitors and enhance user experience. However, the tech sector’s history suggests leveraging established third-party platforms could be more cost-effective and reliable. Giants like Disney have successfully integrated platforms like BamTech, while HBO initially utilized external technology before transitioning. AMC Networks similarly relies on Brightcove for streaming technologies. The pivotal question for Ellison is whether the potential benefits of custom-built solutions justify the investment and risk, especially when patching together proven third-party solutions might yield quicker and more economical results. #InEssence... These challenges are monumental, yet not insurmountable. As we watch Paramount’s narrative unfold, one thing is clear: transitioning into a tech entity is more than just a strategic pivot—it’s a gamble on the future of entertainment itself. Thoughts? #Paramount #StreamingWars #MediaTech

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Recent data from Ampere Analysis points to how far behind streaming companies like Apple TV, Disney Streaming, and Paramount+ are, compared to the likes of Netflix and Prime Video & Amazon MGM Studios. By expanding production beyond the North American market, Netflix and Prime Video & Amazon MGM Studios are tapping into a wealth of untold stories and diverse cultural narratives from countries including the UK, Germany, Spain, South Korea and India. This approach is enhancing their global appeal as dominating streaming platforms, growing their #subscriber bases. As a result, these tech-first #entertainment companies are redefining the original content landscape, bringing fresh perspectives and unique voices to the forefront of the industry. Companies like Netflix leverage technology to produce localized versions of international content that resonate with local audiences. Netflix and Amazon’s international focus is crafting a varied entertainment landscape, where local stories gain global recognition and resonate with a broader audience. With 66% of Netflix's and Amazon's original content orders coming from international markets, such as Squid Game and The Devil’s Hour, the investment in these productions reflects a commitment to cultural diversity and innovation, positioning these tech giants as leaders in #streaming. As they continue to prioritize and elevate non-U.S. content, Netflix and Amazon are driving global demand for TV shows and setting a new benchmark for creativity and storytelling. This trend signifies a transformative era where the agility and forward-thinking strategies of Netflix and Amazon enable them to outpace traditional studios in delivering compelling, original content that captivates viewers worldwide. https://lnkd.in/gpTusBRE #LITrendingNews #ContentProduction #EntertainmentIndustry

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The Chosen: Goodbye Guardian Angel Investors The Chosen has been a recent case study as a shining example of what can happen when creators tap into underserved markets with a compelling vision - and an insight into innovative media business models. The Chosen didn't just find its audience; it created a movement. However, if you’ve followed the recent contract disagreements (as it’s technically not a lawsuit), you may have seen the recent news that The Chosen (company) and Angel Studios have officially parted ways after arbitration deemed a breach of contract by Angel Studios. This video gives some insight into what it takes to produce a series of this scale - being its own company with over 65 full time employees dedicated to only one production. It also gives some insight into the financial tradeoffs with working with Angel Studios. When people ask why there aren’t more shows like The Chosen, they should understand the following: 1. Production Budget: Season 1 - $10 M Season 2 - $12 M Season 3 - $18 M Season 4 - $40 M 2. Corporate Set Up: The Chosen is its own company that does SEC filings and has a staff of over 65 full time employees. The money for the overhead of The Chosen company is completely separate from the production budgets listed above. The organization's overhead is solely funded through gift sales (books, DVDs, t shirts, hats, etc.), not through the Pay-It-Forward revenues (that all went toward the production budgets). 3. Full Time Job: This one show is the full time job for everyone involved. They are not balancing other shows, clients, or managing the typical diversified portfolio of work involved with most non-profits - especially since they’re not a non-profit. This is their sole focus day in and day out; which comes through in the level of reception and quality the series has received. I often hear “we could just crowdfund it like The Chosen”  from non-profits, other faith-based media groups, and independent filmmakers. While their intentions are noble, there is a reason this series is the only one of its kind. Most are seeing the tip of the iceberg without looking at the depth of work and business infrastructure involved in creating something with this effect. The Chosen’s journey underscores the immense dedication, strategic innovation, and robust business acumen required to produce a series of its caliber. It’s a testament to what’s possible when passion meets purpose and vision is supported by a solid foundation. However, the split with Angel Studios also highlights the complexities and risks involved in collaborative ventures, emphasizing the importance of clear agreements and robust business strategies in bringing visionary projects to life.

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Curious to see how people will choose the songs to invest in. Will it be knowledge of the music industry or an understanding of financial markets. At the end of the day, someone will look like a genius. #musicbiz #JKBX #musicindustry #stockmarket #investing

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Paramount Global’s future is uncertain as Bob Bakish steps down amid the company’s M&A drama. Check out Szymon Karbowski's latest post. He shares his opinions on market trends and the current situation of the streaming media, answering these questions and many more. Follow his profile to stay up-to-date when it comes to industry news, technology updates, and market analysis. Szymon shares his expertise regarding Pay TV operators, broadcasters, content providers, telcos, and MSOs. #SzymonKarbowski #StreamVX #BobBakish #ParamountGlobal #ShariRedstone #Viacom #SkydanceMedia #RedBirdCapital #SonyPictures #ApolloGlobalManagement #TheWallStreetJournal #CNBC #NBCUniversal #Comcast

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You have heard about Sarah Silverman's lawsuit against OpenAI and Meta, the Authors Guild class action suit and The New York Times lawsuit against OpenAI, and yesterday the music business turned up the heat on GenAI as well. In the US at least, to know whether it is fair use for OpenAI or others to train their models on someone else's copyrighted works and then monetize the output, it has to pass critical tests, particularly these two: 1) Does your GenAI tool create work that is sufficiently dissimilar to the copyrighted training work? 2) Does the output NOT reduce the potential market for or value of the copyrighted training data? There are clear circumstances where the fair use argument will fail. But what about the murky ones? That's what basically everyone is waiting to see what happens in courts and/or in legislatures. https://lnkd.in/dfwUMrHb

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Over the past few weeks, we've been in the news. For good reasons. We've recently acquired several companies, the latest being Galleri5. This company stands out as a pioneer in AI-powered content solutions and influencer marketing technology. Before you accuse us of being hypnotised to the beats of the AI hype, I want to shed some light on our strategy. We've been expanding our family with exceptionally talented companies for a clear purpose. In recent months, we acquired Terribly Tiny Tales, a text-focused flash fiction platform, and in September 2023, we welcomed Under 25 Universe, India's largest tech-powered student community. Our joint venture with the M19 Collective aims to develop IPs across branded content, offline experiences, and both fiction and non-fiction formats for multiple platforms. Additionally, our Collective Creative Labs initiative assists brands in connecting with customers through pop culture, thereby building brand loyalty. Also, our partnership with Gruhas for to form GCCF focuses on investing in consumer-facing brands and products. When you consider these together built on top of our talent management core, a pattern emerges. We're investing heavily in technology to empower India's young, creative core and our talent ecosystem by providing them with a platform to flourish. Our goal is to drive more impactful, personalised storytelling and predict trends before they happen. Creativity and inspiration are at the heart of what our talent does, and technology will be a powerful tool to amplify their abilities. At Collective Artists Network, we're committed to identifying and supporting the best talent in the country. In this pursuit, technology will be a fundamental pillar of our company's future. Supremely proud to have Rahul Regulapati and his entire gang at galleri5 on board this journey to partner with us in our vision and here’s to building and building and building and scaling :-) The army grows . https://lnkd.in/dBGyQ6NH

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