Significant music catalog deals have proliferated in recent years and the gold rush doesn’t appear to be over yet. In a deal that closed in April 2021, independent music publishing company Concord acquired 145,000 owned and co-published copyrights from Downtown Music Publishing for $300 million. With the Downtown acquisition, Concord became owner of more than 600,000 music copyrights in total, ranging from Imagine Dragons to the Sound of Music.
A Complicated Carve-Out
The extensive catalogue of songs, which required due diligence for copyright and title purposes, combined with an asset carve-out across multiple jurisdictions, made for a complex transaction. The deal involved a substantial pre-closing restructuring and a global carve-out across multiple continents – North America, Europe and Australia – to move the multitude of music assets acquired around the world prior to completing the transaction.
The acquisition is Concord’s most significant since its $500mm+ takeover of Dutch independent music publishing and theatrical rights company Imagem Music Group in 2017.
The Playlist
The music assets acquired include works popularized by Adele, Aretha Franklin, Beyoncé, Blake Shelton, Bruno Mars, Carrie Underwood, David Bowie, Eric Clapton, Grateful Dead, Jay-Z, Lady Gaga, Madonna, Maroon 5, Marvin Gaye, Mary J Blige, Mos Def, Motley Crue, New Order, Rage Against the Machine, Ray Charles, Santigold, Sam Smith, Stevie Wonder and The 1975, among many others.
“The incredible catalog of songs is an excellent complement to the timeless and valuable copyrights upon which Concord has built a successful business,” Jim Selby, Concord’s chief publishing executive, said when the deal was announced.
“Not only does Concord recognize the value of these works, but this transaction further demonstrates the true strength of the modern independent music sector,” Downtown’s founder and CEO Justin Kalifowitz added.
For more Deals of the Year coverage, see Mergers and Acquisitions Reveals the 2022 Middle-Market Deals of the Year.
