New BMG, KKR, music rights bidnes
p2pnet news view Music:- Something strange is happening in the dark and twisted world of the corporate music industry.
In a joint statement from England and Germany, Bertelsmann AG (aka BMG), Sony Music’s erstwhile partner, and Kohlberg Kravis Roberts & Co (KKR), say they’ve joined forces.
“Kohlberg Kravis Roberts & Co. (commonly referred to as KKR) is a New York City-based private equity firm that sponsors and manages investment funds, focusing primarily on leveraged buyouts of mature businesses,” says the Wikipedia.
It’s a “significant investment to build a global music rights management business,” say the two, going on:
Bertelsmann AG will contribute its BMG Rights Management music rights unit. Upon funding of the transaction, Bertelsmann will own 49 percent in the joint venture and KKR will own 51 percent. Bertelsmann AG’s Hartwig Masuch, currently CEO of BMG Rights Management, will continue as CEO of the new company.
The new company will benefit from BMG Rights Management’s know-how in licensing and administrating music rights, its large number of music catalogues and artists, the established BMG brand and its experienced management team. KKR will significantly enhance BMG Right Management’s financial position and create new growth potential by providing access to its global network. The partners envisage building a major music rights management business over the medium term through organic growth and acquisitions. KKR expects to contribute to BMG’s development by providing substantial equity investments through its European private equity funds.
“The music rights sector offers opportunities for significant growth across the globe. BMG has proven leadership and a strong track record of organic growth. Our financial strength combined with BMG’s sector expertise will create a unique platform for building up a global music rights management business,” says Europe KKR boss Johannes Huth, adding:
“In the context of this transaction, BMG Rights Management will be integrated into the equity fund Bertelsmann set up two years ago. The company will be developed from this platform. KKR’s funds will invest into a new holding company of BMG Rights Management. The foundation of the new joint venture is subject to approval under applicable competition laws. The parties expect to complete the transaction within a few months.”
Now you know.
First they ignore you, then they laugh at you, then they fight you, then you win ~ Mahatma Gandhi
July, 2009
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