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Business Tech

Tencent Music Entertainment Set to List on Hong Kong Stock Exchange in Coming Days

It has been reported that Tencent Music Entertainment will be performing a secondary listing in Hong Kong in the coming days.

China’s TME, home to three of the country’s leading music streaming services; QQ Music, Kugou and Kuwo.

The secondary listing plan was announced by TME Executive Chairman Cussion Pang alongside the firm’s Q4 2021 and FY 2021 results.

This will be a very big listing for the Hong Kong Stock Exchange.

“We are pursuing a secondary listing on the Main Board of the Hong Kong Stock Exchange through a listing by way of introduction (which is a direct listing without any offering of new shares), subject to regulatory approvals,” said Pang.

It will be interesting to see in the coming year if TME also decides to keep their NYSE listing or whether they decide to pull out of the US market.

Categories
Business Music

Kobalt Sells to Francisco Partners (Private Equity) – Loss for Independent Music Industry

It was announced a few days ago that Kobalt has sold to private equity firm – Francisco Partners.

The acquisition was price around $750 million and Francisco Partners acquired 90% of Kobalt. The remaining 10% will be split between Matt Pincus’s MUSIC, plus Dundee Partners and also Willard Ahdritz (founder of Kobalt). (Pincus will join the Board of Kobalt post the deal closing.)

Kobalt has always been the poster child of the independent music industry for music publishing rights. It’s a huge shame to see them sell to private equity instead of trying to push on further and remain an independent firm.

Over time it will be interesting to see if Francisco Partners decides to hold on to Kobalt or look to further offload the assets as they appreciate in value.

Either way… Kobalt has had amazing success over the years and its great to see them in a position where they could potentially grow even further.

p.s. Im very bullish on AMRA

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Business Tech

Private Investing vs Public Investing = Tale of Failed IPOs

I posted this on Twitter, but thought I would also share on here as it really showed the difference between private investing and public investing.

Some companies that have market caps less than the total money they have raised:

Bird ($120M mkt cap vs $1.2B raised)

Wish ($810M mkt cap vs $2.9B raised)

WeWork ($2.8B mkt cap vs $16.2B raised)

Lyft ($5.1B mkt cap vs $7.3B raised)

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Business Tech

Cash App Marketing Strategy – Bring in the Hip Hop Culture

I came across this post by – Dan Runcie (Trapital). Great read and started to make a lot of sense in combination with Square (Cash App owners) also buying Tidal.

Research also via – Ark Invest – https://ark-invest.com/articles/analyst-research/squares-cash-app-twitter/

For years, Cash App lagged behind Venmo. But that was before it teamed up with rappers as influencers. Here’s how hip-hop helped Cash App become a $73B+ business.

When Cash App launched in 2013, it was very buttoned-up.

Users needed phone numbers or emails to transfer money. There was no social element. It lost money with every new sign-up.

But in 2015, Cash App introduced $cashtags. In 2017, it followed up with Bitcoin trading just before it hit its first $20k high. The timing was perfect.

With its crypto users generating 3x more revenue than non-crypto users, Cash App wanted to double down on its influence.

At the time, Cash App started getting more shoutouts in rap songs. The company wasn’t sure why, but Block, Cash App’s parent company, locked in on one of the more successful influencer campaigns in recent years.

In May 2018, Cash App teamed up with Lil’ B. That August, Travis Scott came on board. And in December of that year, Snoop Dogg was its newest partner.

With Cash App as a sponsor, these artists gave away $100-$500 to fans who posted their $cashtag under their posts.

Cash App’s hip-hop influencer giveaways worked for four reasons:

1. Low customer acquisition cost (CAC)

2. Free money is always an easy sell

3. This was the first time hip-hop fans were the target audience for a financial service

4. It built on its existing popularity

Let’s break those down.

1. Low CACs

ARK Invest had a great breakdown on how Cash App’s hip-hop influencer tactics drop its CAC to be as low as $20 per user.

As a comparison, traditional banks spend $925 per user.

2. Free money is an easy sell

In 2019, the company spent an estimated $60k on Cash App Fridays, an investment that paid for itself many times over. Cash App Fridays became an awareness-building tactic in itself.

3. Reaching different customers

Cash App’s user base is strongest in the South and the Midwest of the US, which aligns with the regions where many hip-hop fans live.

Historically, these regions also get ignored by traditional banks.

By targeting these areas, Cash App took an approach opposite to most startups who instead focus on their “early adopter” coastal elite networks in NY, SF, LA, and DC.

Unlike Venmo, which relied on Ivy League students and alumni for initial growth.

4. Built on existing popularity

Cash App has now been name-dropped by 200+ hip-hop artists.

Sponsoring artists to give away hundreds of thousands led to more peer-to-peer transactions, which attracted more of its most profitable demographic, Bitcoin investors.

Cash App leaned into its popularity even more when it launched Cash App Studios in 2021 to bankroll artists and other creatives.

Cash App has achieved every modern brand’s dream: To become part of the ‘culture’ without appropriating it.

Categories
Business Music

Beggars Music Group Financials for 2021 – Revenues up 29.7% Year on Year

Beggars Music Group had a strong 2021 (as they have just released their numbers in a filing on UK Companies House).

Beggars Group generated GBP 79.98 million in 2021 – which was up 29.7% year on year.

This figure includes Beggars’ share of various joint venture businesses including XL Recordings, Matador and Rough Trade, in each of which Beggars owns 50%.

Beggars is a huge player in independent music market and it’s great to see that they are still growing strong and getting a strong slice of the market.

Categories
Business

Creating a Brand is Hard and It Takes at Least 5 Years!

The other day we official launched RouteNote Create under the RouteNote umbrella.

RouteNote Create was originally intended to be a standalone product – but I learnt a lot about starting a brand over the past 12 months and it is getting harder and harder with time to build meaningful brands online. The landscape and places you need to be visible are getting larger and larger and it’s very difficult trying to keep them all up to date and heading in the same direction with the same branding, tone of voice and message.

Note to self – If you are going to build a brand – then make sure it focuses on a new customer type and expect it to take at least 5 years to really show fruit!

Categories
Business

Im Tired of YouTube Investment “Gurus”

There are so many investment “gurus” on YouTube and it simply just feels like this is now a step above a used car salesman!

Here is a very good example – Investment Advice! When he simply just adds his money into a very basic Vanguard ETF based off the S&P500.

This is probably as far as it gets from someone who should actually be giving investment advice!

What you really should be watching is video interviews from Warren Buffett – and then also spending a huge amount of time reading and working out your own way to value companies and their intrinsic value.

Categories
Business

SWIFT Network Restrictions Could Cripple Russia in the Ukraine War

I came across this information about SWIFT network posted the other day. This could have a very big impact on the Russian and Ukraine war and instead of trying to put it in my own words I thought I would repost it.


Following Russia’s invasion of Ukraine, Western governments have dropped heavy sanctions on Russian banks, companies, and elites—including President Vladimir Putin himself.

But they’ve yet to move forward with what’s been called the “nuclear option”: banning Russia from using SWIFT.

What is SWIFT?

Belgium’s Society for Worldwide Interbank Financial Telecommunications (SWIFT) runs a messaging service that facilitates transactions across 11,000+ financial institutions globally. Think of it as the “Gmail of global banking.”

Entities in every country except North Korea use SWIFT to shuffle trillions of dollars’ worth of funds across borders. And Russia is a SWIFT power user—as a major supplier of energy and other goods, it ranks sixth globally for payment messages sent on SWIFT. So if Russia were cut off from SWIFT, “the nation would essentially be severed from much of the global financial system,” the NYT wrote.

Thing is, not everyone’s prepared for that

While the UK and Ukraine are trying to boot Russia from the global group chat, the US and some EU nations are a little more hesitant. Here’s why:

  1. They’re not ready to go full James Franco in 127 Hours. Their citizens still use Russian energy to keep the lights on, so shutting down Russia’s Gmail account would essentially force financial communications onto a janky platform like 1990s-era AOL, resulting in a colossal headache for everyone involved.
  2. Another worry for the US is how blocking Russia from SWIFT would impact the dominance of the US dollar in the longer term. The US enjoys many benefits from the dollar’s status as the world’s reserve currency, and US officials are concerned that booting Russia from SWIFT would spur Moscow to join up with Beijing and develop alternative payment systems (on the blockchain, for instance) that undermine the dollar.

Of course, workarounds to SWIFT already exist, which is another reason why some sanctions experts say that blocking SWIFT access is an overrated tool for punishing Russia. You could do it, but you might be creating more problems for yourself in the process.

Categories
Business Video

Shareholders Need to Behave Like Owners – Warren Buffett

Very interesting question to Warren Buffett – in which he then provides a very interesting (yet simplistic) answer.

Shareholders need to act like owners – and in nearly all cases in America – this is forgotten. People forget that when they buy a stock in a business that they are becoming an owner in that business.

Categories
Business Video

Masayoshi Son Talks Covid-19, Investments, and Bold Bets

Masayoshi Son is one of the best investors in the world and he is known for his very bold bets. Masayoshi Son has done so much and he always seems so humble as he is trying to also make the world a better place.

Categories
Business Video

Adam Neumann Talks Failed IPO and WeWork in the Future

This is a great interview with Adam Neumann – who is the former CEO and founder of WeWork. This is his first interview since he tried to take the company public and the valuation of the company halved overnight. He talks about the situations around that previously failed IPO attempted and what is happening now with WeWork.

Categories
Business Tech

Deel Financials for 2021 – $50 million in ARR – 500+ Team Members

Alex Bouaziz the co-founder and CEO of Deel has just announced some of their recent numbers on Twitter.

In 2021 –

  • $4m to $50m in ARR
  • 50 Team Members to 500+ Team Members in 60 Countries
  • Raised over $600 million

That is one of the craziest years I have ever heard.

Categories
Business Tech

Tencent Sells Giant Stake in JD.com – Dropping its ECommerce Share

Tencent is a giant in the world of Chinese technology and beyond. Today they have announced that they will be selling most of its stake in JD.com.

Tencent will reduce is staking from 17% to 2.3%.

The proceeds will help Tencent provide shareholders with a $16.4 billion dividend.

After long being JD’s largest stakeholder, Tencent will give the title to Walmart.

This seems to be a Tencent strategy that has paid off in the long term. Instead of Tencent looking to acquire many companies in adjacent industries – they have decided to acquire minority stakes in a huge number of technology companies globally.

Why?

Its far easy to own more when you own a minority. If Tencent were to acquire more companies – they would have issues with Government and regulator approval.

Categories
Business

Warren Buffett: How To Achieve A 30% Return Per Year Investing (7 Investing Rules)

Here is a great video on some of Warren Buffett’s very simple ideas and principles. It doesn’t elaborate on some of the key points, but it’s a great starting point.

Categories
Business

Marketing is really about bringing together the customer, the product, and the business

“Marketing is really about bringing together the customer, the product, and the business. Great marketing starts with an understanding of customers’ problems, and then how they experience value through the product. All of your marketing needs to reflect that”.

Julie Herendeen – CMO Pagerduty
Categories
Business

Ideas are just a Multiplier of Execution

I came across this image a while back from Derek Sivers (who started CDbaby). Its an old image, but I think it explain a lot.

A few people have mentioned to me recently that they have new business ideas, but they are scared to tell too many people as they think their idea could be copied. I replied to them stating that they shouldn’t be worrying about the idea – and everything comes down to execution!

Categories
Business

Running a Business is All About Your Ability to Learn – Quickly

Life feels like an endless To Do List at the moment.

Its amazing – when you learn about business the courses really teach you about being able to run a small business. They never tell you that as it gets bigger your job becomes harder and harder and its all about your ability to learn a completely new set of skills at every different size of the business.

Categories
Business Football Sports

Man City and Chelsea Leaving European Super League – Football is About Fans Not Greed of Some

Manchester City has officially pulled out of the European Super League – and now Chelsea is going to be the next one.

This league was all about American PE greed!

Americans don’t understand football here in the UK and Europe. Football here is Tribal. Its all about the average working person wanting to watch their favourite team play every week … from big clubs to small local clubs.

Football is about the fans!

Categories
Business Finance Tech

Coinbase Goes Public – I Expect it to Drop to $30 billion Valuation then Rise Again!

Coinbase went public the other day on the NASDAQ. Coinbase have a very exciting business and I have been trying to learn as much as possible about the Crypto world for the past year or so (but feels like I’m barely scratching the surface).

At one point Coinbase hit $100 billion in valuation, but I suspect that will drop below half over the next few months as the froth from the initial trades die down.

It will be very interesting to see how Coinbase performs over the long term, but it does seem to be a good hedge if you expect cryptocurrencies to be strong in the next 10 years or more.

Prediction – it drops below $30 billion in market cap and then it starts to climb again.

Categories
Business

Investors With Inflated Ego

Do you need to have a big ego to be an investor?

I have had an experience for a long time now with one investor who for the most part is your perfect type of investor (silent and then helps when required). However, the only problem is that they tend to over inflate their involvement to everyone they know (even to the point of flat out lies), which then end up making their way back.

Why?

Why can’t some people just be happy with what they have? Why can’t they simply say they have got the best investment of their lives and they didn’t even need to do anything apart from be in the right place at the right time with a little bit of money at Seed stage?