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Jason Peterson, the CEO of GoDigital Media Group (GDMG), not too long ago informed MBW that his firm had seen revenues improve 10-times in simply 4 years – and that it had a “great pipeline” of acquisitions coming not far away.
In the present day (September 13), a kind of acquisitions hits music business headlines: Los Angeles-headquartered GDMG has teamed with MEP Capital to amass Sound Royalties, the music financing platform that pays out advances to artists and rights-holders primarily based on predicted future royalty revenue.
Peterson didn’t disclose the value of the deal however confirmed it was a “excessive eight-figure buy” – i.e. tens of tens of millions of {dollars} – backed by funding from MEP.
Sound Royalties, which has labored with the likes of DJ Khaled, Lil Wayne, Pitbull, and Wyclef Jean, joins a portfolio of firms at GDMG that additionally contains Cinq Music Group. Cinq is a label/rights administration agency which has a robust presence in Latin music and represents repertoire by artists akin to Unhealthy Bunny, Janet Jackson, Jason Derulo and T.I.
Different music-related GDMG subsidiaries embrace AdShare and VidaPrimo, plus special-interest video networks together with Latido Music, mitú and YogaWorks.
Sound Royalties is ready to service transactions from $5,000 to tens of tens of millions of {dollars}. Creators get to maintain their copyrights and ongoing royalty money movement above the quantity financed by the agency.
“Sound Royalties gives a much-needed resolution to the music business for creators and rights holders who’re in search of financing however who don’t wish to promote their rights perpetually.”
Jason Peterson
“Our mission at GoDigital is to encourage happiness via sharing creativity,” mentioned Peterson. “Sound Royalties is a logical funding for GDMG and MEP, contemplating how the corporate and the group are completely aligned with our thesis that music rights are the perfect different funding within the inventive industries proper now.
“Artists, songwriters, and producers are all companies and, like companies in another business, want to have the ability to entry capital to develop. Sound Royalties gives a much-needed resolution to the music business for creators and rights holders who’re in search of financing however who don’t wish to promote their rights perpetually.
“The service permits creators to focus on what they do greatest: make music. We’re additionally happy to say that the present management group will keep on and representatives from GDMG and MEP will likely be becoming a member of the Board.”
Alex Heiche, Sound Royalties CEO mentioned: “Sound Royalties was based on the precept of defending creators’ rights and offering individualized buyer centric options.
“We’re excited to be becoming a member of the GoDigital household, which is able to allow us to broaden our expertise platform and develop extra quickly, whereas preserving the flexibility for creatives to talk and work instantly with our skilled Royalty Specialists to make sure they obtain the perfect financing that fits their particular wants.”
Sound Royalties, LLC was based in 2014 by Alex Heiche and backed by York Capital to supply royalty-based financing companies for music creators.
The corporate gives funding towards future royalties from all main assortment societies, labels, publishers, and distributors.
In 2017, through a $20 million money injection, it funded Cinq’s $10 million-plus acquisition of a grasp rights catalog recorded by hip-hop star T.I whereas at Atlantic Data.
Two years later, GoDigital pumped one other $40 million into Cinq – cash that was subsequently used to signal Janet Jackson and purchase the Beluga Heights label, together with its share of the Jason Derulo catalog.Music Enterprise Worldwide
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