Finance
Why more big deals are coming in the music industry
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Hunting for the next big music deal.
Whether a music catalog is snapped up by a niche investor or behemoth money manager, the buzz around these investments continues to be hot.
“People’s relationships and the experience with the artist is closer and more important than ever,” Reservoir Media (RSVR) founder and CEO Golnar Khosrowshahi told Yahoo Finance executive editor Brian Sozzi in a new episode of the Opening Bid podcast (see video above or listen below).
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As a firm in the music industry, Reservoir Media wears several hats.
“We are a music publisher, record label, [and] management company. The best way to summarize [us] is that we are rights holders and managers who are constantly looking not just to protect IP, but also to license that IP,” Khosrowshahi said.
The company has been a dealmaker for years, however.
One recent deal in 2021 was for hip-hop and electronic label Tommy Boy for $100 million. Since its inception in 2007 by the classically trained pianist Khosrowshahi, Reservoir Media has spent nearly a billion dollars — giving it access to catalogs for iconic musicians such as Joni Mitchell and John Denver.
The deals have allowed Reservoir Media to profit from songs being played on streaming platforms like Spotify (SPOT) and Apple Music (AAPL).
Competitors also haven’t been shy spending big dollars in a bid to capture recurring revenue streams from the streamers and live events.
In 2021, rocker Bruce Springsteen turned many heads after his catalog sold for $550 million to Sony Music. Bob Dylan’s catalog sold for an equally impressive $300 million in 2020 to Universal Music.
BlackRock has announced a $750 million fund with Warner Music (WMG) that would acquire music stakes in artists such as Bruno Mars and David Bowie.
Reservoir Media has demonstrated the growth potential within the category.
It recently reported fiscal third quarter earnings rose 19% to $42.3 million year-over-year. The increase was mainly driven by revenue from its existing catalog, which benefited from price increases at multiple music streaming services and acquisitions.
At close: February 28 at 4:00:01 PM EST
Shares of Reservoir Media are up 11% over the past year. The company’s market cap stand at around $510 million.
In addition to being outside the box as an investment, music catalogs also give music lovers the opportunity to nurture their individual choices and tastes.
“We’re listening to the music that we choose to listen to because we have an emotional relationship with the music,” said Khosrowshahi.
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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