Whether or not Swift re-recorded the three albums, Shamrock would benefit only from the sales of the original versions. 10 years ago, a record label told him his music was unreleasable. The original versions owned by Shamrock did well through 2022 and havent shown much clear evidence of attrition until 2023, according to Billboards analysis of Luminate sales and streaming data in the United States. Ithaca originally paid a reported $300 million for Big Machine Label group in June of 2019. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Even though it lost Swift to Republic Records and its parent company, Universal Music, after her contract expired in 2018, Big Machine remains appealing, with a roster that includes Florida Georgia Line, Thomas Rhett, Tim McGraw, Sugarland and Sheryl Crow. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages. Tim Ingham is the founder and publisher of Music Business Worldwide, which has serviced the global industry with news, analysis, and jobs since 2015. Back in July, MBW reported that Shamrock Capital had raised $400m in a new fund - and that it intended to spend this money on entertainment IP, including music copyrights. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Archived post. ", Swift said her legal team told her this was "absolutely not normal" and that they'd only an NDA like this to "silence an assault accuser by paying them off. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. We are grateful for the continued support of our longstanding investors and welcome our new investors as Shamrock looks to continue generating compelling returns for our limited partners around our investment themes, said Steve Royer, Partner at Shamrock Capital. All the work Swift did to promote her re-recordings, as well as the success of her Republic Records albums and her current U.S. tour, may have also helped sales of the original Big Machine catalog. analyse how our Sites are used. You are now leaving the SoFi website and entering a third-party website. Los Angeles-based private equity firm Shamrock Capital is the mystery buyer of Taylor Swift's master recordings for her first six albums. Speak Now has also surpassed last years album sales and is on track to beat annual sales from 2019 to 2021. Will Swifts pledge to re-record her back catalog deeply devalue Shamrocks investment, or will fans favor the versions they already know and love? And not even just the music. set you up for success with your money, SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The rights to the first six albums by. Get answers to your questions; plus tools, guides, calculators, & more. I still think Shamrock will try to cut their losses and sell the Masters to Taylor. I mean, he now owns a label that hes paid nothing for, more or less, and its a good label., Observers differ over whether Swifts re-records will diminish Shamrocks ability to capitalize on her albums. For cost savings, you can change your plan at any time online in the Settings & Account section. The best of MBW, plus the most important music biz stories on the web. With Taylor Swifts re-recorded version of Speak Now topping the Billboard 200 albums chart and achieving the biggest week of 2023, the singer has pitted her new versions against the original versions she released through Big Machine Label Group in 2010. Between the lines: Swift has been feuding with music magnate Braun since he acquired her former record label, Big Machine, and its assets last year. Related Its important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. Taylor Swift performs onstage during the 2019 American Music Awards at Microsoft Theater on November 24, 2019 in Los Angeles, California. You know she's going to finish the re-records and make a thing of it, with her core fans buying up the new . These links are provided for informational purposes and should not be viewed as an endorsement. This case examines a 2020 pricing decision for the master recordings of Taylor Swifts first six albums, in consideration of a sale of the recordings by music executive Scooter Braun to Shamrock Capital (Shamrock), an investment company owned by the Roy E. Disney family. Standard Digital includes access to a wealth of global news, analysis and expert opinion. All Rights Reserved. Thanks to disruptors like Merck Mercuriadis Hipgnosis Songs Fund, publishing rights have started selling for anywhere from 15-times to 20-times multiples on their Net Publisher Share (aka gross profit). But before the second sale, Swift had already indicated that she planned to create a. In the 18 weeks after Red (Taylors Version) was released, the original versions weekly on-demand audio streams declined 41% to 5.7 million. AI vs. the Music Industry: With the Internet Full of Fake Drakes and Eminems, Who Gets Paid? And despite putting up decent streaming numbers through 2022, the original versions of Fearless and Red have underperformed expectations in 2023. Alongside the news of the new fund, Shamrock Capital has also made two senior promotions. The Big Machine originals are merely along for the ride. In November, we learned that Shamrock had spent around $300 millionto buy the master rights to Taylor Swifts first six albums from Scooter Brauns Ithaca Holdings. Lowest rates reserved for the most creditworthy borrowers. All Rights Reserved. It paid more than $300 million for the rights to Swift's master recordings stretching back to 2006, including all the songs from "Taylor Swift," "Fearless," "Speak Now," "Red," "1989" and "Reputation." Today, we concentrate exclusively on companies and creators that operate within the media, entertainment, content, communication, sports, marketing, and education sectors, and the key technology, data, content, and consumption trends that drive these industries. Sam Halls has been promoted to Principal and Alicia Zhu to Vice President. Billboard is a part of Penske Media Corporation. Lets also suppose she gets good support from the likes of Spotify and YouTube to promote the re-recorded albums,and that Taylors army of Swifties do their duty, rinsing plays of her new masters in place of her Shamrock-owned originals. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. It's unclear if this new transaction will satisfy Swift, who did not participate. Twenty-One Numbers That Tell the Future of Music, Lets Break Down the Mind-Blowing Money in Universal Musics IPO. We use [11] Inez Reynolds, an analyst at Shamrock, has been tasked with estimating the economic value of the masters and recommending how to advise the partners at Shamrock regarding a bid to Braun. "This is the second time my music had been sold without my knowledge," Swift said in her Twitter post Monday. Why Did Shamrock Capital Spend $300 Million on Old Taylor Swift Albums? The 500 Greatest Songs of All Time Shamrock was spun out of the late Roy E. Disney's family office in 2010, and has invested in the Harlem Globetrotters, FanDuel and part of singer Taylor Swift's music catalog. and other data for a number of reasons, such as keeping FT Sites reliable and secure, Los Angeles-based Shamrock Capital has reportedly acquired the rights to the pop star's first six albums for around $300 million from a group including Ithaca Holdings, a media holding business led by famed music manager Scooter Braun and a portfolio company of The Carlyle Group.Variety first reported the deal, with Swift later . I dont know enough to give an opinion on whether it looks like a reasonable price but my gut tells me its too much.. Scan this QR code to download the app now. The original version of Swifts 2012 album Red did even better than Fearless, generating 283.5 million on-demand audio streams in 2019 and 484.7 million on-demand audio streams in 2022, about 19% greater than what would be expected. (2) Stimulate an appreciation and understanding of the perpetuity model for estimating terminal value. the money paid when music is used in a commercial format like an ad or TV show). If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for $69 per month. You can bet your bottom dollar that the representatives of the biggest recordings catalogs in history are now salivating. Musics biggest companies are determined to better monetize superfans on streaming platforms. Very deep, The UFO whistleblower and the search for extraterrestrial life, The $1bn gamble to bring cricket back to America, How a southern Italian crime familys reign ended in tragedy. You can unsubscribe from said promotional emails at any time. Sign up for free newsletters and get more CNBC delivered to your inbox. Also if Taylor is not prepared to promote any re-release (and she clearly isn't) any marketing effort is likely to be wasted. New comments cannot be posted and votes cannot be cast. Zhu joined Shamrock in 2019 and prior to that, she was at The Walt Disney Company where she focused on M&A and long-term strategic initiatives. Just want to talk? However these are all being really sporadically pressed. For the moment it really seems like they are just relying on streams of the OG versions to help them. We recommend that you review the privacy policy of the site you are entering. Taylor Swift's "Love Story" has turned into a tragedy for Scooter Braun. Taylor Swift just can't seem to shake off private equity. I know there is a vinyl shortage and maybe they give priority to new releases, but if Taylor managed to have allllll those 4LP Red TV vinyls pressed (the Target red and traditional black), surely Shamrock could get a slightly more regular pressing schedule for one of the music industrys most lucrative assets. Our journey as a firm matches the evolution of the industries on which we focus. And neither side questions the appeal of Swifts music. Added Royer: Shamrock will continue to invest in companies that are involved in the convergence and transformation taking place within media, entertainment and communications. "Taylor Swift is a transcendent artist with a timeless catalogue. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Taylor Swifts master recordings for her first six albums have sold to Shamrock Capital, a private equity firm, for $300 million. Similarly, her 2019 album Lover accounted for 2.3 million of her 3.4 million album project units last year, and all but 285,000 of the 1.3 million album sales she rang up. At the end of the day I guess Im happy that they arent doing these things, because it makes supporting Taylors Versions so much easier. (Swift owns the rights to both Lover and Folklore.) Thats what I would expect for a current artist who has a following like she does, one attorney says. But, Charlesworth continues, noting Swifts dedicated fan base, if even half of those plays are of her re-records rather than the originals, that will cut Shamrocks core revenue stream., Swift looms large on 2020s music landscape, with Alpha Data showing her to be the most consumed artist of the year to date, with 3.5 million album project units (album sales, plus the equivalent value of song sales and streams). The company says it will use the funds "to capitalize on . You dont need me to tell you whos caused the most noise in the music industry this week. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. These emails form part of the service you elect to receive when you subscribe to any of MBW's free email services. All rights reserved. The deal between Shamrock Capital and Ithaca, as well Taylor Swifts reaction to the sale, have already made waves across the music industry. Master rights have been lagging behind this trend, selling less frequently and for smaller multiples but the big-money Swift-Shamrock deal could change everything. 2023 Variety Media, LLC. Glenn Tilbrook of the band Squeeze appeared in this column last year to explain what happened when his group faithfully re-recorded their hits on the appropriately-named 2010 album, Spot the Difference: Squeezes strategy was Swift-esque, with a plan to get the new tracks synced at budget prices that advertisers and movie-makers wouldnt be able to resist. Of the 3.5 million album-project units she has earned this year, 2.3 million belong to Folklore, which also accounts for all but 210,000 of the 1.3 million album units shes totaled. What the fund? Major label sources also tell Variety that streaming service algorithms and playlists tend to favor original versions. She could defy whats worked in the past., For her part, Charlesworth thinks the new versions could be disruptive. Comments? But under her current deal with Republic Records and Universal Music Group, she will own the masters of everything she records, going forward. Rolling Stone is a part of Penske Media Corporation. The contents of this blog are for informational purposes only and may not be relied on as legal advice. But in two, five, or ten years time, will any of this matter? . Im not the first music biz watcher to have doubts over the prospect of re-records usurping the tracks theyre looking to replace. Prior to its $300m acquisition of Swifts masters in November, one of the biggest music-related acquisitions for Shamrock came in 2018, when the company acquired a music publishing catalog owned by Stargate the writers behind hits for Rihanna, Beyonc, Katy Perry and more. Taylor Swift has confirmed that the rights to her first six albums have been sold by Scooter Braun to a private equity firm, marking the latest chapter in the U.S. singer's public feud with the music executive. Shamrock is based in Los Angeles and was founded by Roy Disney, Walt Disneys nephew. If youd like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. While details on her claim are unclear, and it could possibly stem from Big Machine continuing to distribute those works, attorneys say its not unusual for the selling party to continue to benefit from an asset. Its easy to see why Swifts pissed: She claims that, once again, she wasnt given the chance to make a fair-market bid for her own masters. What about a blockbuster Taylor Swift biopic but one for which a movie studio needs to license the recordings made by Swift when she was 14, 17 and 20, rather than 30? For a comprehensive list of all active Taylor Swift trademarks, visit the Gerben Trademark Library. 2023 Social Finance, Inc. All rights reserved. But these couldnt be considered sales that were lost to Shamrock. Compare Standard and Premium Digital here. Members get 15% off their trust, will, or guardianship estate plans. While the value and probable longevity of Taylor Swifts music is indisputable, the artists vow to stymie the value of those releases has industry observers divided over whether Shamrock Capital overspent when it recently plunked down $300 million, according to sources, for the rights to those recordings. Halls joined Shamrock in 2016 and prior to that, he was an Associate at Silver Lake Sumeru. There is some evidence that the Taylors Version reissues have led to a decline in streams for the original Big Machine albums. We support credit card, debit card and PayPal payments. A daily briefing on what matters in the music industry. Swift announced that she will be re-recording all six albums made under her previous label, Big Machine Records, all of which have since been sold to Shamrock Capital. Taylor Swift at the 65th Annual GRAMMY Awards held at Crypto.com Arena on February 5, 2023 in Los Angeles, California. 2023 Billboard Media, LLC. This case is designed to introduce the principles of firm valuation and includes opportunities for the instructor to explore any of the following teaching objectives: (1) Introduce firm valuation techniques based on a simple DCF model or market multiples. Currently, investors are particularly eager to buy the rights to classic songs like Swifts hits. We made this investment because we believe in the immense value and opportunity that comes with [Swifts] work, said the company in a statement on November 16th. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. Information for investors in SOFI common stock. The corporate is finest recognized for buy grasp rights to Taylor Swift's first six studio albums from nice machine in November 2020 for over $300 million.. Shamrock says his Content material Fund III LP focuses on constructing a various and international portfolio of content material and media rights. Lets say Taylors re-records of classic hits like Shake It Off, Bad Blood, and I Knew You Were Trouble go as swimmingly as they possibly can. We want to hear from you. The original version of Red has sold more albums 26,000 through week 28 of 2023 than in all of 2022 and is already close to surpassing sales numbers for calendar years 2019, 2020 and 2021. Taylor Swift's Masters: What Shamrock Gets for $300 Million, Why It Matters, and What's Next By Geoff Mayfield Michael Buckner/Variety What the fund? Of course, Shamrock does not enjoy the spoils of the three albums of re-recordings. And so far, it doesnt appear the Taylors Version albums are crowding those out. 2023 Rolling Stone, LLC. Business Valuation: Standard Approaches and Applic Case F-2050 / Published July 28, 2023 / 19 pages. Many insiders have been scratching their heads over Shamrocks motivations in the last 24 hours. Even those who think Shamrocks play will pay off agree that $300 million is a startling figure, while those who find that price too high say theyre certain Shamrock baked Swifts friction into the valuation. The deal between Shamrock Capital and Ithaca, as well Taylor Swift's reaction to the sale, have already made waves . The rights to the first six albums by Taylor Swift, arguably the most commercially popular artist in the world, recently were sold to a private equity firm for a whopping $300 million. Had the albums streams grown in line with the industrys annual growth in on-demand audio streams 17.3% in 2020, 12.7% in 2021 and 12.2% in 2022 Red would have had 420.6 million on-demand audio streams. Even on a wholesale basis, syncs $276 million contribution only made up 3.8%. Choose your delivery format to add this product to your cart or save it to your library. the master rights to Taylor Swifts first six albums, the company acquired a music publishing catalog owned by Stargate, Official Charts Company Chart Operations Assistant (UK), HiNOTE Onboarding Consultant, Part-Time (Hybrid, US), RareForm Full-Time Executive Assistant (Remote, US), Bright Antenna Records Product Coordinator (US), 'When youre seeing Janes Addiction or Porno For Pyros on stage, thats what lifes about. According to Swift, Shamrock said that before the sale Braun had required that the firm make no contact with her or her team, or the deal would not go ahead. . Its an eye-popping price tag, says Daniel Ives, managing director of equity research at Wedbush Securities. But they could be doing so much more. He characterizes her catalog as a crown jewel of an asset, even if she re-records. The firm is best known for buying the master rights to Taylor Swift's first six studio albums from Big Machine in November 2020 for north of $300 million. Peek beneath the surface, however, and there are actually good reasons Shamrock and the investors in its $400 million IP fund may still end up smiling over the deal in the long-term. They bought the records. Shamrock did not respond to Billboard's request for comment on this story. In June 2020, Shamrock acquired the advertising trade publication Adweek from Canadian private equity firm Beringer Capital. (3) Estimate the cost of capital using industry comparables. The corporate says it's going to use the funds "to capitalize on tendencies . is the founder and principal of Gerben Law Firm. Cottonwood Heights, Utah 84121, Terms and Conditions Apply. Our passion for the sectors in which we transact is evidenced by our track record of success, and we strive to deliver exceptional outcomes in each of our investments. Swift herself has confirmed that Shamrock is the mystery buyer to have acquired the master rights to Swift's first six albums from Scooter . Over the past several decades, the rise of streaming has completely changed the structure of the music industry. What the fund? Delivered for FREE, direct to your inbox each day. The 200 Greatest Singers of All Time Because if Taylor Swifts first few albums are worth $300 million in the modern, institutional investor-driven business, you have to wonder what could the first few albums by Drake, The Beatles, Michael Jackson, Whitney Houston, U2, Madonna or Led Zeppelin fetch? The rights to the first six albums by Taylor Swift, arguably the most commercially popular artist in the world, recently were sold to a private equity firm for a whopping $300 million. Sources also say its doubtful that UMG was unaware of the Shamrock transaction when it recommitted to the label, leading sources to believe Swifts first six albums will continue to move through Big Machine. The Beautiful Eyes EP (which everyone suddenly remembered and wants) is going for $100-200! In 2008, Mr. Gerben started the firm to provide high-quality trademark services at reasonable prices. The dispute over Swift's music began last year, when Braun's media company Ithaca Holdings bought Big Machine Label Group from her old manager Scott Borchetta and with it, the original recordings of her first six albums. At the same time, Swifts re-recordings have done phenomenally well. The dispute began last year, when Braun's media company Ithaca Holdings bought Big Machine Label Group and with it, the original recordings of her first six albums.
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