Another week, another report of a catalog mega-deal in the works.
Last week, the Financial Times reported that David Bowie’s estate is “at an advanced stage” in negotiations to sell his catalog, which has “attracted bids of around $200 million”.
Now, both the recorded music and publishing catalogs belonging to another one of music’s biggest superstars, Bruce Springsteen, is reportedly up for sale.
That’s according to Billboard, which, citing sources, reports that Springsteen is in talks to sell his recorded music catalog to Sony Music.
In addition, Billboard reports that its sources say that Sony is also in line to buy Springsteen’s publishing rights, but that the catalog ‘might still be in play’, with ‘one or more’ big-money investment-backed publishing firms mulling the purchase.
Billboard estimates Springsteen’s recordings catalog to carry a valuation of between $145 million and $190 million based on a 15-times and 20-times multiple, respectively, on what it estimates was his average earnings over the past three years.
Meanwhile, Billboard also estimates Springsteen’s publishing catalog to be worth between $185 million and $225 million, at a 25-times multiple and 30-times multiple, respectively.
Combined, as per those those estimates, the bundle of publishing and recordings rights could fetch between $330 million and $415 million.
Elsewhere in the rights acquisition space, on Monday (November 1), US-based Tempo Music announced its acquisition of a majority stake in the master recordings and compositions of albums See You On The Other Side and Untitled by alternative metal band Korn.
Last month alone saw BMG acquire what it called “an extensive portfolio of rights” related to the music and image of Tina Turner, which MBW estimated would have cost the music company in excess of $50 million.
Meanwhile, Primary Wave swooped for a stake in the assets owned by the estate of the legendary Bing Crosby for a reported $50 million, as well as a stake in the catalog of Luther Vandross as part of a deal with the iconic R&B star’s estate for a reported $40 million.
Plus, the giants of the financial world are getting turned on to the value of music rights.
Blackstone, one of the world’s most powerful financial players, has confirmed that it is investing around $1 billion to acquire music rights via a partnership with Merck Mercuriadis.
Kobalt Capital, meanwhile has confirmed that investment giant KKR has acquired the KMR Music Royalties II portfolio for approximately $1.1 billion.
And, Apollo Global Management is investing up to $1 billion in the Sherrese Clarke Soares-led music rights and media content-focused firm, HarbourView.Music Business Worldwide
