The music joint venture of German media group Bertelsmann AG and Kohlberg Kravis Roberts & Co. made its
first acquisition, buying Los Angeles' Crosstown Songs from the investment arm of Cargill Inc. Crosstown has a catalog of more than 8,000 songs, which it says has a value of about $80 million.
The JV, BMG Rights Management, was created to form a global music rights management business. It's 51% owned by KKR, which invested €250 million ($354 million) into the venture. BMG recently said when BMG Rights Management started its business in October 2008, its rights catalogue consisted of about 200 artists; since then, another 100 contracts with songwriters and other rights owners have been signed. Crosstown boasts songs such as "Before Your Love" by Kelly Clarkson, Britney Spears' "Toxic" and music from the "Baywatch" TV show.
On other possibles acquisitions, Reuters notes that there has been speculation that beleaguered
London-based private equity firm Terra Firma might be forced to sell its EMI Music publishing catalog, the second-largest catalog of songs in the world. The story also mentioned the value of Michael Jackson's half of the Sony-ATV Music Publishing JV, which includes many Beatles songs. In related news, Sony is
reportedly paying about $60 million for rehearsal footage of Jackson shot at Staples Center in Los Angeles.
The deal for Crosstown is subject to approval under applicable competition laws and other customary conditions to closing. -
Baz HiralalGo to the story
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