HarbourView Lands Biggest Acquisition to Date With SoundHouse Deal

  • 📰 billboard
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

The purchase, estimated at $325 million, includes royalty streams for songs by artists like Tech N9ne, George Jones and Trey Songz, among others.

While that catalog consists mainly of royalty income payments for streams of sound recordings, the catalog is said to contain recordings from over 100 artists, consisting of about 10,000 songs that generate more than 10 billion streams annually. All told, SoundHouse’s 2021 income was put at about $24 million. Sources say that Shot Tower Capital shopped the catalog.

Prior to its acquisition by HarbourView, SoundHouse, founded in 2016, was known for approaching distressed labels and offering to buy their royalty income, mainly from the streaming of master recordings, at bargain-basement prices, sources say. SoundHouse also did deals with artists as well, but mainly by buying their streaming revenue from master recordings, leaving the artists to retain other income streams associated with their records.

In addition, SoundHouse also acquired the assets of InPop Records, an indie contemporary Christian label based in Nashville. At the time of that deal, in February 2018, a press release said InPop was SoundHouse’s 15th acquisition and brought its catalog to over 3,500 recordings.that deal represented SoundHouse’s third Christian music acquisition, and added that SoundHouse was backed by Spark Capital, Columbia Capital and Pinnacle Bank.

In any event, sources suggest that the HarbourView deal for SoundHouse carried a price tag that ranged anywhere from $250 million to $400 million. These days, master recording rights are trading for a 12-15 times multiple, although superstar recordings have been known to reach a 20-times multiple of net income, also known as net label share.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 112. in BUSİNESS

Business Business Latest News, Business Business Headlines