Concord buys Downtown’s owned audio copyright catalog for close to $400m

Harmony was a person of the global audio industry’s big-spenders in 2020, splashing in excess of $100 million on two situations – once to obtain a vast majority stake in Pulse Tunes Team, and then yet again to purchase a catalog from strike-generating US band Imagine Dragons.

In contrast to that, 2021 has been comparatively peaceful for Concord’s dealmaking team… until eventually now.

Right now (April 26), it is been verified that a Concord affiliate has acquired 145,000 copyrights from New York-headquartered Downtown.

This portfolio constitutes Downtown’s entire owned and/or co-released music catalog, and usually takes Concord’s owned and controlled new music assets to above 600,000 operates.

The catalog involves hits and functions performed by the likes of Adele, Aretha Franklin, Beyoncé, Bruno Mars, Carrie Underwood, David Bowie, Jay-Z, Woman Gaga, Marvin Gaye, Ray Charles, Sam Smith, Stevie Speculate, and The 1975.

As part of the transaction, Downtown will go on to take care of world wide royalty selection for the afflicted copyrights by the conclude of 2021.

Harmony and Downtown have not verified the selling price of the offer, but MBW has plenty of information and facts to make an informed estimate.

A new enterprise deck on Downtown circulated to the investment decision community and noticed by MBW exhibits that the company’s owned catalog created an NPS (Net Publisher Share) in 2020 of about $20 million.

Sector resources who have been near to the aggressive Downtown catalog sale process advise the profitable acquirer (i.e. Harmony) would have paid a 20-times several on this NPS figure.

This all suggests that Harmony has agreed to pay back in the area of $400 million for the Downtown copyrights.

It consequently will make perception that, in today’s push release asserting the offer, Harmony notes that the Downtown purchase is its “most significant given that the order of Imagem in 2017″.

That buyout of Imagem is recognized to have expense Concord in the region of $550m.

In the similar push release today, Downtown notes that the proceeds of its catalog sale will be “reinvested back into Downtown”.

As a consequence of its catalog sale, Downtown is now no for a longer period a considerable copyright operator, and will rather emphasis solely on the speedy-increasing music providers sector.

Downtown now manages extra than 23 million music property on behalf of extra than 1 million creators and 2,500 business clientele all over the entire world, via functions these kinds of as Songtrust, Downtown Music Publishing, CD Newborn, and DashGo.

“Concord is an fantastic dwelling for this remarkable catalog that we have had the exclusive privilege to create over the earlier 14 many years.”

Justin Kalifowitz, Downtown

Downtown retains its comprehensive roster of publishing administration clientele, which include the Estate of George Gershwin, John Lennon & Yoko Ono, Miles Davis, John Prine, Wu-Tang Clan, Ryan Tedder/OneRepublic and other individuals.

Downtown Founder and CEO, Justin Kalifowitz mentioned: “Concord is an great residence for this remarkable catalog that we’ve had the exclusive privilege to establish more than the previous 14 decades. Not only does Harmony realize the value of these works, but this transaction further demonstrates the true strength of the contemporary independent songs sector.”

Jim Selby

“Our world publishing workforce is honored to now depict these songwriters and their functions to the earth.”

Jim Selby, Concord

Concord’s Chief Publishing Govt Jim Selby reported: “The extraordinary catalog of tunes is an outstanding enhance to the timeless and precious copyrights upon which Harmony has crafted a prosperous company.

“Our international publishing staff is honored to now signify these songwriters and their works to the world.”

The Downtown portfolio marketed to Concord features the Great Soldier Music catalog, together with the whole music publishing catalog of The 1975, which Downtown acquired  final year.

It also incorporates the Salli Isaak Music / Salli Isaak Audio Publishing catalog, acquired by Downtown in 2018, which consists of hits written by Sam Smith collaborator Jimmy Napes.

The Raine Team acted as the exclusive monetary advisor to Downtown on the transaction, with legal counsel from Wilson Chu, Joanna Lin, and Thaddeus Chase, Jr. of McDermott Will & Emery LLP, and Jeff Biederman and Beau Stapleton of Manatt, Phelps & Phillips LLP.

Concord and its affiliate marketers have been advised by Steve Sessa and Chris Sheaffer of Reed Smith and Rob Sherman of DLA Piper. Lisbeth R. Barron and the staff at Barron Worldwide Team, LLC acted as the distinctive fiscal advisor to Concord on the transaction.Audio Organization Throughout the world