Indie Publisher Bug Music For Sale For $300M
JPMorgan Chase is facilitating an auction for Indie music publisher Bug Music with an asking price of $300 million. As reported by the New York Post, Bug has already received the first round of bids from numerous interested parties. Among this list are several of the majors, including Warner Music Group, Universal Music Group, Sony/ATV Music and a partnership between KKR and BMG. The next round of bids is due on June 18.With a going price of $300 million, Bug is a seeking a higher multiple of their price to earnings ratio than other music companies in similar sales. According to the Post, the $300 million sale price would put Bug at 12 times the net publisher's share. Bug's annual revenue is estimated to be $70 million.
"Typical music publisher multiples currently range from 8 to 10 times net publisher's share for quality assets. Historically they've trended more toward the 10 to 15 times range." Lisbeth Barron, a Berenson & Company banker with expertise in the music industry told the Post.
Privately owned, Bug is one of the largest indie publishers in the world, holding copyrights to more than 250,000 songs, inclduing "What a Wonderful World," and "The Real Slim Shady." as well as current chart toppers by acts such as The Kings of Leon's "Use Somebody" and Brad Paisley's "American Saturday Night." – CelebrityAccess Staff Writers
Why is this treasure trove being auctioned off? What caused them to get into financial trouble in the first place?
Bad times at Bug Music. One of the biggest names in the music publishing industry is in dire financial trouble.
Rumors of administration problems, internal struggles, and a company wide pay freeze have haunted the organization for the past fiscal year.
Anonymous sources within the company have confirmed the pay freeze. Many believe the company will resort to staff cutting measures and layoffs in a desperate attempt to alleviate their serious financial woes.
Bug Music represents the estates of such esteemed musical luminaries as Johnny Cash and Stevie Ray Vaughan. However they also represent some of today’s most popular artists such as Wilco, The Guess Who, and Jamie Foxx. Despite representing artists that recently scored wins at both the Grammy’s and the Oscars, the company’s financial direction has turned sour over the past two years.
In 2007, Bug Music acquired the renowned Windswept Music and Trio/Quartet catalogs, giving the company control over 250,000 music related copyrights. One source close to the story feels the company may have over extended itself when it aquired the massive mew catalog. Administration woes have also frequently been cited by sources close to the organization.
Should the company fail it would have a devastating ripple effect throughout the entire music industry.
Bad times at Bug Music. One of the biggest names in the music publishing industry is in dire financial trouble.
Rumors of administration problems, internal struggles, and a company wide pay freeze have haunted the organization for the past fiscal year.
Anonymous sources within the company have confirmed the pay freeze. Many believe the company will resort to staff cutting measures and layoffs in a desperate attempt to alleviate their serious financial woes.
Bug Music represents the estates of such esteemed musical luminaries as Johnny Cash and Stevie Ray Vaughan. However they also represent some of today’s most popular artists such as Wilco, The Guess Who, and Jamie Foxx. Despite representing artists that recently scored wins at both the Grammy’s and the Oscars, the company’s financial direction has turned sour over the past two years.
In 2007, Bug Music acquired the renowned Windswept Music and Trio/Quartet catalogs, giving the company control over 250,000 music related copyrights. One source close to the story feels the company may have over extended itself when it aquired the massive mew catalog. Administration woes have also frequently been cited by sources close to the organization.
Should the company fail it would have a devastating ripple effect throughout the entire music industry.
Any news on this?