ZZ Top’s manager negotiated a deal to sell their entire catalog to BMG and KKR for $50M. The agreement includes a buyout of the “band’s publishing catalog and their income from recorded royalties and performance royalties.” ZZ Top and BMG have held a joint publishing agreement for years. With worldwide sales topping 50 million copies of their 15 albums, ZZ Top hits include ‘La Grange,’ ‘Tush’, ‘Cheap Sunglasses’, ‘Gimme All Your Lovin”, ‘Legs’, ‘Got Me Under Pressure’, and ‘Sharp Dressed Man’, amongst others.
BMG and KKR released a statement stating that this was “the latest significant music rights deal [our] two companies have struck together” – suggesting that other joint acquisitions have already been finalized, but not yet announced.” “KKR says it is investing in the catalog through its private credit investment funds and vehicles, and that it will own its interest in ZZ Top’s music through its Chord platform.”
ZZ Top manager Carl Stubner of Shelter Music Group said: “We are proud to continue working with and expand our long-standing relationship with BMG. This new deal ensures ZZ Top’s remarkable legacy will endure for generations to come.”
BMG CEO Hartwig Masuch said, “This deal is a testament to the success, staying power and continuing musical relevance of ZZ Top, but also to the power of our partnership with KKR. This agreement furthers our vision of providing artists and songwriters not just a financial exit, but also a vehicle committed to respecting and treasuring their artistry.”
Jenny Box, Partner at KKR, said, “We are excited to invest in ZZ Top’s iconic music and we look forward to collaborating with BMG and ZZ Top to further amplify the reach of their catalog.”
– Excerpt from an article for Music Business World by Tim Ingham. Read the full article here.
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