Hanging over a Spotify IPO is the $1 billion in convertible debt that the company recently borrowed from Goldman Sachs, Dragoneer Investment Group, and Texas Pacific Group (TPG is also a Pandora lender, coincidentally–if you believe in coincidences). Let’s assume that loan is in dollars.
If you take into account the loan’s 5% interest rate and the value of the warrant coverage in the deal, Spotify is essentially paying credit card interest on $1 billion (that 5% rate escalates 1% every six months until it reaches 10%, or Spotify registers an IPO).
Source: Spotify IPO Watch: Brexit’s Bubble Bursting Bang – Artist Rights Watch
Shamrock Capital Advisors has announced a new $250m fund focused on acquiring or financing entertainment IP – with music publishing and master rights firmly on its shopping list.
The Entertainment IP Fund will be spent on a “diverse group of assets that have been through their initial window of release”, which may also include movies, TV productions, video games and other content types.
Source: Shamrock readies $250m acquisition fund – and eyes music rights – Music Business Worldwide
Virtual-currency trading startup ANX International is opening up its know-how so that people can issue their own digital assets using blockchain, the underlying technology behind bitcoin, the digital money that has become a popular method of paying for goods and services and trading over the Internet.
.ANX says its new service lets anyone make a blockchain account in minutes and choose how many digital assets to create. Ken Lo, ANX’s chief executive officer, said the technology for issuing blockchain-based assets has been in development for the past three years. It has been used internally for some of ANX’s biggest clients, he said, including an e-commerce company that wanted to run a loyalty program. By doing so, companies are able to set up reward programs without complicated back-office processes and reduce the risk of fraud.
Source: Startup Touts Blockchain Exchange That’s as Simple as E-Mail – Bloomberg
Companies in financial services, healthcare, energy and other industries are sprinting to begin adopting blockchain — the technology behind Bitcoin that promises to improve efficiency in numerous processes, plus create new business opportunities. But many are doing so simply because of fear of missing out, without a clear understanding of how it can be useful and when it should be applied.
As executives scramble to educate themselves while also leading their companies into what many acknowledge will be a blockchain future, one place to start could be “The Business Blockchain: Promise, Practice, and the Application of the Next Internet Technology,” (Wiley, April 26, 2016) by William Mougayar, a venture capitalist at Virtual Capital Ventures and advisor to some of the more well-known blockchain organizations such as the Ethereum Foundation, which supports the development of a Bitcoin competitor, and peer-to-peer marketplace OpenBazaar.
Source: Looking To Integrate Blockchain Into Your Business? Here’s How – Forbes
Monday, one of the leading startups in the space, San Francisco-based Chain, published a new open source protocol, or set of technical standards, called the Chain Open Standard for building a blockchain network that can securely, privately and rapidly handle a large volume of transactions.
Depending on the hardware and network configuration, it can process tens of thousands of transactions per second. In contrast, the Bitcoin blockchain is currently capable of processing roughly six or seven transactions per second.
The Chain OS is focused on networks that can digitize the world’s existing assets (not a new currency like Bitcoin), whether commonplace ones like gift cards or more obscure ones like syndicated loans, and was developed by applying the technology to real projects in areas such as banking, payments, capital markets and insurance.
Source: Chain, With Visa, Citi, Nasdaq And Others, Releases Blockchain Protocol For Financial Networks – Forbes
As a debate raged across the internet Monday over whether the mysterious founder of the bitcoin digital currency had finally been identified, executives at a major bitcoin conference in New York had a simple message: we’ve moved on.
That’s because bitcoin, the digital currency, has largely been supplanted by blockchain, the technology that underlies it, as the main interest of investors, technology companies and financial institutions.
“If there is a 100 percent opportunity in the blockchain, bitcoin, or the currency, is only 1 percent of it,” said Jerry Cuomo, vice president, Blockchain Technologies at International Business Machines Corp. “So there is a whole 99 percent that has broad applications across the broad industries.”
Source: Banks, tech companies move on from bitcoin to blockchain | Reuters
As financial services sprints toward a blockchain future, companies need a secure platform for experimenting with the technology.
Amazon Web Services announces Monday that it will collaborate with New York City-based Digital Currency Group, one of the biggest investors in blockchain firms, to provide such a service so the blockchain providers in DCG’s portfolio can work in a secure environment with clients who include financial institutions, insurance companies and enterprise technology companies.
Source: Amazon Steps Up Blockchain Commitment; Web Services Partners With Digital Currency Group – Forbes