So You Want to Sell Your Publishing Rights? A Veteran of the Business Says Take a Beat

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Randall Wixen, founder of Wixen Music Publishing, offers guidance for artists tempted to get swept up in the latest trend to sell off ones publishing rights.

) that was set up thereunder, I see music catalogs being worth double what they are now in four to seven years. If that prediction of catalogs doubling in value happens, current rights holders can look at the 25 times net earnings multiple as being closer to 12 1/2 in reality.Even with capital gains at the current 20% rate, let's say that representatives and any other folks"helping" sell songs are somehow constrained to only taking a 10% fee of the sale price.

Do the songs have any personal or sentimental value and would you not care if, say,"You've Lost That Loving Feeling" was used in a condom commercial?Have they made money in their past companies or have they left a stream of disappointed investors and furious creators in their wakes? Are these companies based in foreign countries or in off-shore tax havens where it might be hard for investors to take legal action if necessary?

 

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