The group bought about 60 songs written by Shannon Rubicam and George Merrill, the duo behind the two Houston smash hits, for between US$50 million and US$100 million, according to people familiar with the matter. Rubicam and Merrill also performed their own songs as a duo named Boy Meets Girl, such as “Waiting For A Star To Fall,” released in 1988.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
Primary Wave did not disclose the price of the Rubicam and Merrill purchase. “It’s one of the larger acquisitions we have done,” said Larry Mestel, chief executive of Primary Wave, which is managing the Brookfield-funded investment vehicle.Article content The rise of streaming on platforms such as Spotify has transformed the music business, making the royalties generated by songs an appealing investment while interest rates were historically low in recent years. Large investors such as Pimco, Blackstone Inc. and Apollo Global Management Inc. have entered or increased their exposure to the market, viewing music copyrights as similar to bonds because they generate consistent cash flows.
As a result, song valuations have soared, although prices have recently fallen due to rising interest rates. “Prices have softened a bit over the past three months or so, but not at the highest end of the market,” said Mestel. “It’s like a Basquiat or a Warhol. These are very unique pieces of art that happen to generate substantial income.”Article content
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: financialpost - 🏆 7. / 85 Read more »
Source: financialpost - 🏆 7. / 85 Read more »
Source: nationalpost - 🏆 10. / 80 Read more »
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Source: fpinvesting - 🏆 43. / 63 Read more »