Look. We’ve damaged some fairly large information of late. Correct information. However this? Measurement-of-transaction-wise, this tops the lot.
MBW has confirmed by way of well-placed sources that Irving Azoff‘s US-headquartered PRO, World Music Rights (GMR), struck a multi-billion greenback deal yesterday (September 18) with a brand new non-public fairness companion.
The transaction, we’re instructed, valued GMR at USD $3.3 billion.
It’s understood that Azoff is sustaining a stake within the firm, however TPG – his long-time co-owner in GMR – has cashed out.
It’s additionally understood that the customer is a personal fairness agency, Hellman & Friedman, which had USD $120 billion in Property Below Administration (AUM) on the shut of 2023.
Moelis & Firm managed the method, which one supply stated “ran like a Swiss watch”.
“This isn’t only a large win for TPG however for everybody else too,” stated one other MBW informant with information of the deal.
“Irving Azoff and his crew did a tremendous deal that’s been years within the making. Hellman & Friedman will now be turning everybody’s heads. And Moelis simply landed on the map in music M&A in a serious manner.”
(Replace: The typically-well-informed Hits Every day Double is reporting “rumors” that, whereas protecting a stake in GMR, Azoff “took some chips off the desk” within the $3.3 billion deal. We’re listening to the identical: Azoff’s saved a big stake in GMR however he additionally offered a portion of what he beforehand owned to Hellman & Friedman… at that whopping valuation.)
GMR, led by CEO Randy Grimmett and headquartered in Los Angeles, was based in 2013.
Lately the corporate has represented the catalogs of artists/writers together with Harry Kinds, Drake, Bruno Mars, Bruce Springsteen, John Lennon, Pharrell Williams, Nicki Minaj, Shawn Mendes, Metallica, Pearl Jam, Dangerous Bunny, Jon Bon Jovi, Lizzo, Journey, Prince, and The Killers.
A licensing and assortment society, GMR has been notably aggressive in taking authorized motion towards US broadcasters it feels aren’t appropriately remunerating its shoppers.
In 2022, GMR settled with the Radio Music Licensing Committee (RMLC) – which represents 10,000 business radio stations – following a landmark and long-running authorized dispute over royalty funds from US radio networks.
GMR’s preliminary criticism towards RMLC in 2016 claimed that the US radio “cartel” managed greater than 90% of radio business income, whereas reaching what it stated on the time was greater than 245 million listeners weekly.
GMR clearly isn’t the primary for-profit PRO to drag off a large transaction previously 12 months.
In a deal that closed in February, BMI was majority-acquired by New Mountain Capital, with Google‘s CapitalG taking a minority stake.
CapitalG has beforehand invested over $4 billion into 55 corporations, together with the likes of Airbnb, Stripe and Lyft.
“Our partnership with New Mountain charts an extremely thrilling new course for BMI and our songwriters, composers and publishers,” stated Mike O’Neill, President & CEO of BMI, when the deal closed.
Added O’Neill: “New Mountain shares our imaginative and prescient to construct worth for our associates and put money into their future success.
“With their assist, superior degree of innovation and assets, we at the moment are in the very best place to speed up our progress plan and discover new alternatives to profit our inventive neighborhood.”Music Enterprise Worldwide
