iWorld
Substack expands video capabilities amid Tiktok uncertainty
MUMBAI: The social media landscape is shifting, and Substack is seizing the moment. With Tiktok’s future in the U.S. hanging in the balance, the San Francisco-based startup is doubling down on video, aiming to lure creators looking for new ways to monetise their content. On 20 February, Substack announced that creators can now post video content directly through its app and place videos behind a paywall.
“There’s going to be a world of people who are much more focused on videos,” said Substack co-founder Hamish McKenzie. “That is a huge world that Substack is only starting to penetrate.”
One of those creators is Carla Lalli Music, a food content creator and cookbook author, who made a dramatic switch from Youtube to Substack. After posting nearly 200 videos, amassing hundreds of thousands of followers, and generating millions of views, Music quit Youtube. Why? The numbers didn’t add up. She earned almost $200,000 in revenue in just one year on Substack, a stark contrast to the losses she incurred producing videos for Youtube since 2021.
“If I published four videos a month on Youtube, I’d earn about $4,000, but each video cost $3,500 to make,” Music said. “I was losing $10,000 a month.” Even with brand deals, the earnings barely covered production costs. Now, with her content behind a paywall, she’s focusing on writing another book, posting exclusive recipes, and selectively producing videos for Substack subscribers.
Founded in 2017, Substack initially served as a newsletter platform where writers could charge readers a monthly subscription fee. The company raised $100 million, with its most recent valuation exceeding $650 million. Today, more than four million paid subscribers and over 50,000 creators generate income on the platform.
With the uncertain future of Tiktok, Substack is aggressively expanding its offerings. Following Tiktok’s brief removal from Apple and Google’s app stores in January, Substack launched a $20 million fund to attract creators looking for a stable platform.
“If Tiktok gets banned for political reasons, there’s nothing to do with the work you’ve done, but it really affects your life,” McKenzie said. “The only and surefire guard against that is if you don’t place your audience in the hands of some other volatile system who doesn’t care about what happens to your livelihood.”
Now, Substack is courting video-first creators from competing platforms, offering them a place to own their audience without algorithms deciding who sees their content. Already, 82 per cent of Substack’s top 250 revenue-generating creators have integrated audio or video into their content.
Unlike its previous video feature that only allowed clips in Notes-Substack’s front-facing feed—the new update lets creators monetise videos, track viewership, and measure revenue impact.
For creators burned by unreliable earnings on other platforms, Substack’s paywalled video model offers a sustainable alternative. The company is betting that in a world where direct-to-fan revenue drives more than half of the $290 billion creator economy, the ability to monetise video will make its platform even more attractive.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
