Investing.com– Blackstone Inc (NYSE:BX) is considering the sale of its SESAC-managed song rights portfolio, including works by Bob Dylan, Adele, and Ariana Grande, in a deal that could exceed $3 billion, Bloomberg News reported on Thursday citing sources.
The move comes amid strong investor interest in performance rights assets, with firms like Apollo Global Management LLC Class A (NYSE:APO), Warburg Pincus, and Singapore’s Temasek Holdings reportedly exploring bids, the report said.
SESAC, acquired by Blackstone in 2017 for approximately $1 billion, licenses music for public performances, including popular television shows like Grey’s Anatomy and Seinfeld, and also manages entities like the Harry Fox Agency and Audiam.
The music industry’s growth, fueled by streaming revenues that doubled global recorded music revenue to $28.6 billion in 2023, has made assets like SESAC increasingly valuable. Recent market activity includes TPG Inc ‘s (NASDAQ:TPG) $3.3 billion sale of Global Music Rights (GMR) and Blackstone’s $1.6 billion purchase of Hipgnosis, indicating the high demand for music-related investments, the report stated.
Financial firms continue to diversify their investments in the music sector, targeting performance rights organizations, catalogs, and services as they adapt to the industry’s evolving revenue landscape, according to the Bloomberg report.