Warner music paid upwards of $500M for a 60,000
song catalog owned by Herb albert and partners.
Sources say that Jerry Moss and Herb Alpert are shopping their co-owned Rondor Music, which is among the world's largest independent music publishers. The Los Angeles-based company, which includes the Stateside Almo Music and Irving Music catalogs, is said to command a selling price upwards of $500 million, a figure based on a 20-times multiple of net publisher's share. It is said that Moss and Alpert decided to float a sale of the company following the $200 million acquisition by EMI Music Publishing of the U.S. publishing interests of Japan's Windswept Pacific (Bulletin, July 22).
When contacted yesterday by Bulletin, Moss said, "There is nothing going on right now. Like any indie, we get calls. We're not selling at the present time." When Moss and Alpert sold their A&M label to PolyGram a decade ago, the two retained ownership of their music publishing interests.
Ronder's 60,000 Catalog sold for $500M+ (a sampling)
"California Girls," "Good Vibrations,"
"Wouldn't it Be Nice " The Beach Boys
"Let's Stay Together," "Love and Happiness" Al Green
"We've Only Just Begun," "Rainy Days and Mondays" The Carpenters
"American Girl," "Breakdown" Tom Petty
"Tears in Heaven" Eric Clapton
"You are So Beautiful" Joe Cocker
"Money for Nothing" Dire Straits
"Baby I Love Your Way" Peter Frampton
"Thriller," "I Want to Rock with You" Michael Jackson
"In the Midnight Hour" Wilson Pickett
"Sitting on the Dock of the Bay Otis Redding
"Respect" Aretha Franklin
"Higher Love" Steve Winwood
"White Rabbit," "Somebody to Love" Jefferson Airplane
"Shaft" Isaac Hayes
"A Song For You" Leon Russell
"My Heart Will Go On" Celine Dion
"I Am Woman" Helen Reddy
"Soul Man" Sam & Dave
"The Air That I Breathe" The Hollies
Sheryl Crow catalogue
Sheryl Crow Sells Publishing Catalog To First State Media Group
August 19, 2009 - Publishing
By Edward Christman, N.Y.
Sheryl Crow has sold her music publishing catalog to First State Media Group, a Dublin, Ireland-based investor in publishing assets. The Wall Street Journal, which first reported the sale earlier Wednesday, said the deal was valued at about $10 million. Crow's catalog had been administered by Warner/Chappell Music.
First State Media Group, the parent of music publisher S1 Songs, said in a statement that it has acquired 153 songs released by Crow between 1993 and 2008 and that it has secured the publishing rights to her next two albums as well.
In the statement, First State Media Group managing director Geordie Manolas said the Crow catalog acquisition "is a significant coup" for the company, adding that "her repertoire has considerable longevity."
In an email to Billboard, Crow's lawyer Jay Cooper, co-chair of the
Los Angeles entertainment practice of Greenberg Traurig, confirmed that Crow sold the publisher's share in her songs for the life of the copyright.
Crow, who has co-written hits like "All I Wanna Do," "My Favorite Mistake" and "Everyday Is A Winding Road," retains her songwriter's share of copyright, which means she will still participate in any upside revenue generated by First State Media Group's synchronization and marketing teams.
Dutch Investors Buy Rights to Rodgers & Hammerstein, Adding to Library.
APRIL 21, 2009
A music-publishing fund primarily owned by a giant Dutch pension fund has acquired the music-publishing catalog of the iconic songwriting duo Richard Rodgers and Oscar Hammerstein II, in a deal that highlights the ongoing value of music-publishing assets even in the age of online piracy. The buyer, Imagem Music Group, didn't disclose the purchase price for the Rodgers & Hammerstein Organization, but people familiar with the music-publishing business estimated it at as much as $200 million.
Imagem is owned mainly by the Dutch civil-service pension fund Algemeen Burgerlijk Pensioenfonds, known as ABP, and is managed by CP Masters BV, an independent European music publisher. 20th Century Fox/Everett Collection
The Rodgers & Hammerstein Organization includes copyrights to musicals including 'The Sound of Music,' above, among others. Richard Rodgers, below at left, and Oscar Hammerstein, circa 1957 Everett Collection..Several of the biggest music publishers, including Warner Music Group Corp.'s Warner/Chappell Music and Sony Corp.'s Sony/ATV Music Publishing, had considered buying the Rodgers & Hammerstein Organization, according to people familiar with the matter. But most dropped out of the bidding because they considered it overpriced, especially for a catalog of Broadway songs.
Music publishing -- the ownership and exploitation of copyrights on melody and lyrics -- has grown in importance in the digital age. It's a part of the music business that has held its value far better than the sound recordings owned by record labels, because fees from publishing rights can be collected from a broad range of uses, not all of which are vulnerable to piracy. For instance, music publishers collect royalties when songs are played on the radio, in restaurants and bars and when any version of a song (not necessarily the original recording) is used in a movie, television show or commercial. Michael Jackson bought the rights to much of the Beatles catalog in the 1985 for $47 million. In the decades since, that purchase has provided hundreds of millions of dollars in cash -- partly through the sale of a 50% interest to Sony -- that have partially insulated Mr. Jackson from a variety of financial travails.
Imagem said that the acquisition of the Rodgers & Hammerstein catalog makes it the world's largest independent music publisher, with annualized revenue of more than more than €100 million, or about $129 million, and the rights to more than 200,000 pieces of music. The Rodgers & Hammerstein Organization includes copyrights to the music and lyrics to musicals including "Oklahoma," "The King & I" and "South Pacific." It also holds 12,000 songs by 200 other writers including Irving Berlin and Mr. Rodgers's other famous lyricist-collaborator, Lorenz Hart.
Imagem has snapped up a number of major music-publishing assets in recent years. Among them, several big pop catalogs that were spun off in 2007 as concessions to regulators when Universal Music Group bought Bertelsmann AG's music-publishing unit. Universal is owned by Vivendi SA. Imagem last year acquired Boosey & Hawkes, the large classical-music publisher, whose catalog includes this year's Pulitzer Prize-winning composition, Steve Reich's "Double Sextet."
Universal Music Group has sold the European publishing rights to Rondor UK, Zomba UK, 19 Music, 19 Songs and the BBC Catalog to ImageMusic, a joint venture between Dutch pension fund ABP, and CP Masters BV, an independent music publisher based in the Netherlands. Terms of the deal were not disclosed, but sources close to the situation pegged the value at just under $150 million. The catalogs - which comprise some 90,000 copyrights - include music from Max Martin, the writer-producer behind hits from Britney Spears and the Backstreet Boys, as well as Mark Knopfler and the Kaiser Chiefs. UMG was required to sell the assets in connection with European regulatory approval for its $2 billion acquisition of BMG Music Publishing, which it purchased last year.
Universal retains the rights to those catalogs in the US and in other territories outside of Europe. The deal is a further sign of the high price tag investors continue to place on music publishing assets, driven by the emergence of private equity investors and other institutional funds as potential buyers of publishing catalogs in recent years.
Pre-sale estimates of Zomba/Rondor valued the catalog's worth between $90 million and $150 million - as much as twice its original value. A source close to the matter said ABP, which claims over $300 billion under management, is putting up close to half the money for the purchase.The deal marks the first time ABP has invested in the music business. Ronald Wuijster, head of strategy and research at ABP Investments said the firm will "certainly look to continue expanding" into the market through acquisitions and other opportunities.UMG was required to sell the assets in connection with European regulatory approval for its $2 billion acquisition of BMG Music Publishing, which it purchased last year. Universal retains the rights to those catalogs in the US and in other territories outside of Europe. The deal is a further sign of the high price tag investors continue to place on music publishing assets, driven by the emergence of private equity investors and other institutional funds as potential buyers of publishing catalogs in recent years. Pre-sale estimates of Zomba/Rondor valued the catalog's worth between $90 million and $150 million - as much as twice its original value. A source close to the matter said ABP, which claims over $300 billion under management, is putting up close to half the money for the purchase. The deal marks the first time ABP has invested in the music business. Ronald Wuijster, head of strategy and research at ABP Investments said the firm will "certainly look to continue expanding" into the market through acquisitions and other opportunities.
Soul for sale: Berry Gordy sells half of Motown catalog for $132 million.(Deals)
Berry Gordy Jr. is giving up his last piece of the Motown kingdom. Gordy announced this week that he was selling his final stake and roughly 15,000 songs to the EMI Music Publishing company. EMI will have complete ownership of the songs. Motown Records' parent, Universal Music Group, owns the rights to the original recordings of the songs. This marks the first time Motown will be officially…
EMI Group, one of the world's largest music publishers, has secured the copyright to 15,000 classic Motown hits such as My Girl and I Heard It Through the Grapevine in a $132m (pounds 80m) deal.
The company has taken a 50 per cent stake in the Jobete companies - Jobete Music Co and Stone Diamond Music Corporation - owned by the founder of Motown Records, Berry Gordy. Sir Colin Southgate, EMI's chairman, said yesterday it was likely EMI would buy the remainder of the Jobete companies in the future.
He added that EMI had, through protracted negotiations, gained control of "the greatest private catalogue". Sir Colin said EMI had "been to the altar three times with Berry, but this is the first time we've got married".
The Jobete catalogue includes Motown classics sung by artists such as Stevie Wonder, Diana Ross, the Jackson Five, Lionel Richie and Smokey Robinson. Through the deal, which was funded entirely in cash, EMI has bought the copyright to songs such as Baby Love, Ain't No Mountain High Enough and Reach Out I'll Be There.
Sir Colin said he was confident EMI's full ownership of Mr Gordy's catalogue would not be "decades away". It is thought EMI would take control of the Jobete companies on Mr Gordy's retirement, if not before. Mr Gordy, who will remain chairman of the business, is 67.
Day-to-day operation of the catalogue will be handled by Martin Bandier, chief executive of EMI Music Publishing.
EMI already had a marketing agreement with Mr Gordy outside North America, which will be extended throughout the world as a result of yesterday's acquisition.
City analysts were impressed with the deal. One said the price paid was "not unreasonable" and added: "Consolidation in music publishing is a good idea. Music publishing is a very profitable business." Another said EMI would "do very well" by including the songs in compilations. EMI Music Publishing already owns the copyright to more than 1 million songs, including those by Jamiroquai, M People, and the Prodigy.
Unaudited accounts show that, at 31 December 1995, the Jobete companies had net assets of $45.2m and reported pre-tax profits of $6.7m. The two companies are owned by Mr Gordy and his sister Esther Edwards and was the largest remaining independently owned catalogue. Jobete Music was founded in 1959, and became the music publishing arm of Motown Records.