Scooter Braun's Big Machine Acquisition Shows Record Labels Are Considered a Good Investment Again

  • 📰 billboard
  • ⏱ Reading Time:
  • 24 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 63%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Scooter Braun's acquisition of Big Machine Label Group -- and the master recordings for Taylor Swift's first six studio albums -- is music's most compelling transaction so far this year. But, aside from the controversy, the deal was utterly normal from a financial point of view.

Scooter Braun and Scott Borchetta pose for a photo at a private residence on June 28, 2019 in Montecito, Calif.'s first six studio albums -- is music's most compelling transaction so far this year. The $300 million price tag for the Nashville-based "major indie" company is triple what BMG paid for another large Nashville indie label -- BBR Music Group, home of Broken Bow Records -- in 2017.

Big Machine reportedly had earnings of $40 million a year. In this case, earnings are measured before interest, taxes, depreciation and amortization . So, BMLG cost about 7.5 times EBITDA. That's in the sweet spot of music acquisition multiples. For example, Access Industries paid $3.3 billion, or 8.4 times EBITDA, for Warner Music Group in 2011. Eight years earlier, Warner was acquired by eventual CEOThe outlier is Terra Firma's 2007 purchase of EMI Music.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Sorry But .... Please post something that makes the world better not just show who is the evil 💔

You mean Taylor’s masters

yadah yadah yadah

these priicks are only out for them selves and dont care about anyone else. they need sacked and told to fukk off

The music industry devils

These rats again? Girl bye!

Trash

Rats

good

se fode cara

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 NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines