SESAC Is For Sale, #3 U.S. Performing Rights Firm Could Fetch $500 Million
SESAC, the for-profit alternative to non-profit performing rights collection organizations ASCAP & BMI, is for sale. A number of marquee artists including Bob Dylan and Lady Antebellum use the company to negotiate licenses with radio stations, TV networks, film studios and performance venues.
Goldman Sachs has been hitred by media investment bank Allen & Co. and hedge fund Och-Ziff to try to fetch $500 million for the Nashville-based company, according to the New York Post.
A previous auction which sought $700 million failed, in part because of the limited number of buyers available. Publishers and records labels, for example are unlikely bidders. “Because of the needs of performing-rights organizations to be deemed independent, it is more challenging to sell… because of the concern of losing the ‘Switzerland’ status,” according Lisbeth Barron, a managing director at investment bank Berenson & Co.
My first response to this is that we musicians,composers,should try to find the wealthiest among us and buy SESAC collectively.
We already ARE the company. It is our royalties that fuel the company. ASCAP, BMI, SESAC, SOCAN represent US. Herein lies our power. Goldman-Sachs?
that’s a brilliant idea, liz.
I’m with Liz, though I’m sad to see them sell. They are a wonderful company.
That does sound like a good plan!