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CommentsKKR & Co., the private equity firm run by Henry Kravis and George Roberts, has gone into business with Bertelsmann AG, Europe’s largest media company. The joint venture between the two companies involves the purchase of Los Angeles-based Crosstown’s catalog of more than 8,000 songs from CarVal Investors LLC, investment arm of Cargill Inc., which manages more than $8 billion in assets.
“The acquisition of Crosstown represents a significant first step for the new joint venture and our desire to define a new business standard in managing the licensing and administration of content rights,” an e-mailed statement from BMG Rights chief executive, Hartwig Masuch, read.
Of course, with the Crosstown catalog valued at $80 million, who wouldn’t be thrilled about the undertaking? With the help of Henry Kravis and George Roberts of KKR, this purchase would double the number of songs controlled by BMG Rights Management.
The catalog holds all-time favorite hits like, Ricky Martin’s “Livin’ La Vida Loca,” Britney Spears’ “Toxic” and Sheryl Crow’s “All I Wanna Do.”
When the venture was announced July 8, two sources familiar with the project gathered that the partners will spend 250 million euros, equivalent to $336 million, putting up a global music-rights business.
Henry Kravis and George Roberts’ New York-based company, KKR will reportedly control 51% of the joint venture, leaving 49% to Guetersloh, Germany-based Bertelsmann.
The Crosstown purchase is still laid open to the required regulatory approvals, BMG said in the statement.
Bertelsmann Chief Financial Officer Thomas Rabe released this statement when news of the venture went public: “We both want to broaden BMG’s global reach faster than originally anticipated. In this way, we will be able to actively participate in the expected market consolidation.”
Post Author: guest