So, you’re a major label, and you’ve got this huge pile of money sitting around. Something in the ballpark of, oh, $300 million. Now this is where it gets difficult: you want to use the money for good… or at least for rock ‘n’ roll. If this describes you (and really, who reading TMT right now doesn’t see a little bit of himself/herself in the above scenario?), you’re in luck, because publisher Bug Music is currently for sale.
The first round of bids has seen the likes of Universal Music Group, Warner Music Group, Sony/ATV Music, and a partnered KKR and BMG stepping up to the plate. The next round of bidding takes place on June 18, so now is probably the best time to sell off that private island you bought in the Caribbean in order to raise funds.
In an interview with The New York Post, Lisbeth Barron, a Berenson & Company banker with music industry access, stated that , “Typical music publisher multiples currently range from 8 to 10 times net publisher’s share for quality assets.” Bug, however, is asking for 12 times net. (Their annual revenue is estimated at $70 million.)
So what makes Bug so special? Well, the company is the largest indie publisher in the world, with copyrights to over 250,000 songs. So, next time you hear “What a Wonderful World” in a commercial for cold medicine or that shitty Kings of Leon song “Use Somebody,” just know this: Bug Music owns publishing rights to them, but those rights could be yours.
• Bug Music: http://www.bugmusic.com
