KKR joins Bertelsmann in music rights venture
Posted by: admin in Engagements and Deals News
Although the web continues to erode the music business, there is still investor interest in the sector. Just look at private equity powerhouse KKR. The firm has agreed to form a joint venture with Bertelsmann that’ll focus on music rights management. KKR will get 51% of the entity.
Even though Bertelsmann has been shedding its music business over the past few years, there are still remaining assets. So, why not lower the danger of these assets by bringing in a financial partner?
Bertelsmann currently owns an extensive music catalog, which has memorable acts such as the Scorpions. The fact remains that vintage music can be a nice source of consistent cash flows, which is certainly attractive to the private equity crowd.
Besides, as seen with the death of Michael Jackson, there can be a spike in interest when a legendary singer dies. Yes, it’s kind of gruesome, but still be a consideration for an investor.
Tom Taulli is the author of various books, including The Complete M&A Handbook
KKR joins Bertelsmann in music rights venture originally appeared on BloggingBuyouts on Wed, 08 Jul 2009 11:40:00 EST . Please see our terms for use of feeds.
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