The important detail of Bruce Springsteen’s $500m-plus catalog sale to Sony Music Group


The main music firms have cumulatively spent a billion {dollars} on acquisitions this week.

Warner Music Group confirmed yesterday (December 16) that it has acquired the Kevin Liles-led 300 Entertainment, for a value believed to be roughly $400 million.

(This sale may have marked a giant payday for Lyor Cohen; MBW hears the YouTube Music boss was a big shareholder in 300, and is rumored to have re-acquired an extra stake within the enterprise from Google/Alphabet in current occasions.)

Meanwhile, Sony Music Group has formally confirmed that it’s acquired two units of rights – each recordings and music publishing – protecting the whole lot of Bruce Springsteen’s catalog.

The recording rights go to Sony Music / Columbia, whereas Springsteen’s publishing is acquired by Sony Music Publishing.

Sources counsel to MBW that the entire quantity paid to Springsteen for the double acquisition was above $550 million.

Said Springsteen of the buyout: “I am one artist who can truly say that when I signed with Columbia Records in 1972, I came to the right place.

“During the last 50 years, the men and women of Sony Music have treated me with the greatest respect as an artist and as a person. I’m thrilled that my legacy will continue to be cared for by the company and people I know and trust.”

One fascinating factor to observe about each the Warner and Sony agreements: Warner beforehand distributed 300 Entertainment; Sony beforehand distributed Bruce Springsteen’s masters.

In different phrases, each firms have spent tons of of tens of millions to purchase rights they already represented.

It’s seemingly, due to this fact, that each recorded music acquisitions gained’t make a dramatic distinction to WMG and Sony Music’s revenues (and their revenue-based market share).

However, the place each firms will certainly see a profit is of their margin (i.e. in each circumstances, as a distributor/companion, the majors would usually see much less revenue from these grasp rights than they may as their proprietor).

Another fascinating factor to think about: Bruce Springsteen inked a multi-year cope with Universal Music Group to globally administer his publishing in 2017.

Sony’s acquisition of Springsteen track rights is, due to this fact, one other battleground second between music’s two largest main firms.

Last yr, Universal Music Group acquired the Bob Dylan catalog – which had been lengthy administered by Sony Music Publishing – for round $400 million.

Sony then acquired the Paul Simon track catalog – which had lengthy been administered by Universal (in sure territories) – for someplace upwards of $250 million.

Bruce Springsteen’s track catalog, in accordance to sources, was the topic of an intense acquisitive battle between Sony and Universal, with Sony finally getting the deal (and paying the wedge it required).

Yet maybe the most fascinating detail of Sony Music Group’s double Springsteen acquisition is that this: The agency’s report firm (Sony Music / Columbia) has spent its personal cash shopping for Springsteen’s catalog, however the agency’s publishing firm (Sony Music Publishing) partnered with Eldridge Industries to assist fund its acquisition of Springsteen’s track portfolio.

Eldridge is a personal funding agency headquartered in Connecticut, and was co-founded by its CEO and Chairman, Todd Boehly (pictured inset).

Boehly is a well-known US investor, who owns stakes in sports activities groups together with the L.A Dodgers and L.A Lakers.

(Boehly can be Chairman of MRC, mother or father of Dick Clark Productions; MRC additionally owns a stake in PMRC, the mother or father of Billboard, Variety and Rolling Stone, and an investor in MBW.)

Eldridge hit the headlines final yr when it acquired The Killers’ music publishing catalog for an undisclosed payment.

Sony and Eldridge haven’t confirmed the quantity of funding Eldridge funnelled into the Springsteen deal.

Will one other big-name music rights catalog acquisition be introduced earlier than the shut of 2021?

The two big artists within the rumor mill at present are Sting – believed to be contemplating a sale of his track catalog for $250 million – and David Bowie.

Bowie’s property is known to have held talks with Warner Music Group over the potential sale of the British star’s track catalog for round $200 million.Music Business Worldwide

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post