Sony Music is reportedly building a financial instrument known as “Rock Bidco” in an attempt to acquire the music archive of UK rock band, Queen. The iconic band’s catalogue, spearheaded by the late Freddie Mercury, is anticipated to command a price tag around a billion dollars.
The entity “Rock Bidco” was set up on 17th May and is overseen by Tim Major, joint head of Sony Music Publishing, as per a statement made to the UK Companies House.
Over the last year, Queen has been seeking buyers for their music compilation, having held discussions with both Sony Music and rival company, Universal Music. The latter ceased exclusive negotiations as the proposed cost surpassed their budget, according to insiders.
If sold for the estimated valuation, Queen’s catalogue sale would rank amongst one of the most significant in recent times. The sale would encompass audio records, publishing rights, merchandise, licensing income, and takings from the biographical film, Bohemian Rhapsody.
The proposed deal structure indicates Sony’s intent to team up with another firm to generate funds, shared an insider.
The investment organization, Eldridge Industries, cofunded Sony’s whopping $500 million acquisition of Bruce Springsteen’s song list.
A favoured investment class recently has been music rights due to the reliable income derived through record sales and streaming profits. Big-names in rock such as Bob Dylan, Springsteen, and Neil Young have taken advantage of the recent surge in interest, selling their life-long creations for substantial sums.
Just last month, flamboyant US rock band, Kiss, sold their music rights as well as the rights to their name, image, and likeness to Pophouse Entertainment for a cool $300 million.
With over 300 million records sold worldwide, Queen is considered one of the most commercially successful bands in the history of music. Their hit song, Bohemian Rhapsody, tops the charts for most streamed rock songs, and the 2018 biographical film helped bolster their popularity and sales alike.
According to Billboard, Queen’s music creates an annual royalty revenue of approximately $45 million.
Sony Music declined to comment on the matter. – The Financial Times Limited 2024