🎧 Money hungry for music

Plus: Ye comes to Gap | Friday, January 07, 2022

Open in app View in browser     Axios Closer By Hope King and Nathan Bomey ·Jan 07, 2022 Hello! How are you? Happy Friday. 💆‍♀️ Today's newsletter is 676 words, 2½-minute read. 🔔 The dashboard: The S&P closed down (0.4%) for a fourth day in a row. Biggest gainer? Discovery (+16.9%) shares got a boost following an analyst upgrade to buy. Biggest decliner? D.R. Horton (-6.2%) and other homebuilders dropped as investors worried about rising mortgage rates.     1 big thing: Music sounds like money to Wall St. Illustration: Aïda Amer/Axios   Wall Street and music's love affair has reached a fever pitch, Hope writes.  Why it matters: Artists and investors are finding it mutually beneficial to trade song rights in exchange for large payouts. Catch up quick: John Legend is the latest example. An affiliate of private equity firm KKR bought a 50% stake in Legend's copyrights and royalties rights, according to a regulatory filing. At 43, Legend is younger than many of the artists like Bruce Springsteen and Bob Dylan who have recently struck mega deals as part of estate planning — a signal that younger artists will follow suit.  The backdrop: The value of music catalogs has skyrocketed alongside the consumption of digital media. The combination makes it a win-win for musicians who want to cash in just as investors are hungry to turn songwriters and their tunes into predictable returns. COVID has added another reason to sell: Seasoned musicians whose opportunities for live music revenue are limited due to lack of tours have turned to the sales as a way to plan for their futures.  What they're saying: "Artists [are increasingly] looking for ways to diversify their wealth," Sherrese Clarke Soares, founder and CEO of HarbourView Equity Partners, tells Axios. The bottom line: There has never been a better time for musicians who have reached a certain point in their careers to sell, Larry Miller, director of music business at NYU Steinhardt, tells Axios.     2. Charted: Jobless rate drifts downward Data: FRED; Chart: Axios Visuals The U.S. unemployment rate fell to 3.9% in December, approaching its pre-pandemic low of 3.5% in February 2020. Driving the news: Employers added 199,000 jobs — half as many as economists expected — but labor force participation remained steady, driving the jobless rate lower. The labor market isn't improving for everyone. The unemployment rate among Black women rose from 6.5% in November to 7.1% in December. What they're saying: "The true measure of economic success is how the economy is doing for those usually left behind. Currently, the Black unemployment rate is more than 2x the white unemployment rate, & Black women were the only demographic group who saw unemployment rise in December," U.S. Department of Labor's chief economist Janelle Jones wrote on Twitter.     3. What's happening  Apple CEO Tim Cook pocketed nearly $100 million in compensation in 2021: That's 1,447 times the median Apple worker. (CNN) 💼 Latinos are more likely than Black, white or Asian Americans to have gig jobs. But 72% would prefer permanent work. (Axios)     A message from Axios Hybrid 2.0: The new way of working, communicating and engaging employees     Axios HQ spoke with HR and business leaders to identify the new challenges and opportunities of Hybrid 2.0, including: How to retain talent after a Great Resignation The pandemic trends that are here to stay Where employee experience is still in need of innovation Get the discussion exec summary     4. Vaccine mandate on verge of collapse A protester marches outside the Supreme Court on Friday, when justices heard arguments on President Biden's vaccine mandate. Photo: Anna Moneymaker/Getty Images   Businesses may not be required to mandate COVID vaccines or tests after all. The Supreme Court appeared poised to block the Biden administration's mandate for employers with more than 100 workers, Axios' Sam Baker writes. Between the lines: The six conservative justices sounded skeptical on the grounds that the administration's rules were too broad, though they left some ambiguity about their ruling. Yes, but: Some employers are proceeding anyway. Citigroup said it would fire unvaccinated workers within weeks, the Wall Street Journal and Reuters reported today. Mayo Clinic said it fired some 700 workers who refused vaccination, though about 99% of employees complied. What's next: The Supreme Court is expected to rule quickly, not waiting until the end of the term like it would in typical cases. Rejecting the mandate would lead to a nationwide patchwork of vaccine rules.   Share Axios and earn rewards If you like this newsletter, your friends may, too! Refer your friends and get free Axios swag when they sign up. Be a good friend and share   5. Balenciaga meets Gap Kanye West is seen in Chelsea on Jan. 5 in New York City. Photo: Gotham/GC Images Luxury brand Balenciaga is coming to the Gap — thanks to the rapper formerly known as Kanye West, Axios' Courtenay Brown writes. Balenciaga will be brought into the fold of "Yeezy Gap," the collaboration the struggling retailer has leaned on to revitalize sales. The hype has worked: Gap said most Yeezy buyers — 70% — were first-time Gap shoppers. And never before had it seen more single-day sales of an online item than the last Yeezy Gap drop, a $90 sweatshirt.     6. In memoriam: Sidney Poitier Sidney Poitier on Sept. 15, 1980. Photo: Evening Standard/Getty Images   "Former @disney board member Sidney Poitier was the most dignified man I've ever met. Towering…gentle…passionate…bold…kind…altogether special." — Bob Iger, former Disney CEO and chairman, on Twitter about the death of the Oscar-winning actor whom the New York Times called "Hollywood's first Black matinee idol" and someone who "helped open the door for Black actors in the film industry."     A message from Axios Hybrid 2.0: The new way of working, communicating and engaging employees     Axios HQ spoke with HR and business leaders to identify the new challenges and opportunities of Hybrid 2.0, including: How to retain talent after a Great Resignation The pandemic trends that are here to stay Where employee experience is still in need of innovation Get the discussion exec summary   🙌 Thanks for reading! Have a good one, and remember to take care of yourself. 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