As we mentioned previously on the RouteNote Blog, Warner Music is up for sale. It is now being reported by the NY Post that over 20 parties have expressed an interest in acquiring Warner Music Group.
Most often named as potential bidders for all or part of either music group include: BMG, Zomba founder Clive Calder, Russian investor Leonard Blavatnik, Universal Music, Sony Music, equity firms KKR, Apollo and Providence and Netherlands-based music publisher Imagem.
BMG has agreed to acquire Chrysalis for £107.4 million ($168.6 million). Chrysalis has over 100,000 tracks in their publishing division, which includes tracks by David Bowie and Michael Jackson along with artists Cee Lo Green, Sheryl Crow and Blondie.
I was sitting in my living this evening watching Britain’s Got Talent Final and really wondered what Simon Cowell actually owns and how much his companies make. Well I thought I would write a quick article and run through the basics of the Cowell empire.
Simon founded a record label and television company Syco which encompasses music, film and television. Within these companies they operate television shows such as The X Factor, Britains Got Talent, American Inventor, America’s Got Talent and Grease is the Word.
Cowell claims Syco accounted for approximately 40% of Sony Music Entertainment profit in 2006, despite only employing 14 people. By 2008, it was believed that Syco accounted for as much as 70% of Sony profits. In 2008 Sony music entertainment forecasted a net profit of $1.5 billion, thus making Simon Cowell’s companies estimated at $1.05 billion if they indeed did 70% of the profits.
CNET and the Wall Street Journal are both reporting that Universal Music Group and YouTube are in final negotiations to create a new music videos website, with the working title of Vevo.
The site is intended to feature music videos, artist-related content and interviews. The aim of course is to bring in more high profile brands who arent necessarily interested in advertising on YouTube because of its user-generated content.
It has been mentioned by CNET that the three other major labels have all been approached to join the Vevo service. Im sure this would all work in the same way as Myspace Music in which the major labels all have an equity stake. Myspace Music has amazed me that so many independent labels have come on board with the solution, because they should realise that part of their profits are still going to the major labels. However, with Myspace Music most independent labels need to have their music on the site, so why not make some revenues in the process.
