Learn How

We need your help in 2018

Support All About Jazz All About Jazz is looking for 1,000 backers to help fund our 2018 projects that directly support jazz. You can make this happen by purchasing ad space or by making a donation to our fund drive. In addition to completing every project (listed here), we'll also hide all Google ads and present exclusive content for a full year!

SESAC Sold To Blackstone, A Private Equity Firm Known For Leveraged Buyouts, Credit Default Swaps

SOURCE:

Sign in to view read count
U.S. music performing rights and rights management organization SESAC has been acquired by one the country's biggest private equity and investment groups, Blackstone. Financial terms of the transaction were not disclosed.

SESAC, the only one of the three top U.S. performing rights organizations to operate as a for profit privately owned business,  has been acquired from Rizvi Traverse Management by private equity firm Blackstone.  This transaction is Blackstone’s first investment as part of a private equity strategy designed to hold investments for much longer periods of time than traditional private equity funds. 

While a large and sometimes respected firm, Blackstone is also known for aggressively pursuing profits from its assets. In 2013, the company was shown to be self dealing after its affiliate GSO Capital Partners purchased debt and credit default swaps in Codere SA, a Spanish betting, online gambling and gaming company. 

SESAC’s 30,000 affiliates include many of the top songwriters including Bob Dylan, Neil Diamond, RUSH, Charli XCX (PRS), Zac Brown, Mumford & Sons (PRS), Lady Antebellum, Mariah Carey, Axl Rose, Shirley Caesar, and Robin Thicke.

Little immediate change is expected, according to SESAC Chairman and CEO John Josephson who said in a statement, “Blackstone is acquiring our company with the specific intent of backing the existing management team, and shares our long-term vision for the company with a history of adding value to their portfolio companies as a supportive strategic partner and capital provider. We anticipate a seamless transition in ownership with no disruption to our business activities as a result of this transaction.”

SESAC is the only U.S.-based music rights organization that administers public performance, mechanical, synchronization and other rights  within a single company. Thus, SESAC is able to offer singular licenses for the works of its affiliated writers and publishers that aggregate both performance and mechanical rights. SESAC also recently expanded its activities to include the international market through MINT, a joint venture with Swiss collection society SUISA, that will license and administer music rights to digital music platforms on a pan-European basis.

Continue Reading...

This story appears courtesy of HypeBot.
Copyright © 2017. All rights reserved.

Tags

News

Timely announcements from the industry.

Support All About Jazz's Future

We need your help and we have a deal. Contribute $20 and we'll hide the six Google ads that appear on every page for a full year!