Blackstone Inc is reportedly exploring the sale of its SESAC-managed song rights portfolio, which includes iconic works by artists such as Bob Dylan, Adele, and Ariana Grande. The potential deal, valued at over $3 billion, has attracted interest from firms like Apollo Global Management LLC, Warburg Pincus, and Temasek Holdings.
SESAC, acquired by Blackstone in 2017 for around $1 billion, is known for licensing music for public performances in popular TV shows like Grey’s Anatomy and Seinfeld. The company also oversees entities like the Harry Fox Agency and Audiam.
The music industry’s rapid growth, driven by the surge in streaming revenues that doubled global recorded music revenue to $28.6 billion in 2023, has made assets like SESAC highly sought after. Recent market transactions, such as TPG Inc’s $3.3 billion sale of Global Music Rights (GMR) and Blackstone’s $1.6 billion acquisition of Hipgnosis, highlight the strong demand for music-related investments.
Financial firms are increasingly diversifying their investments in the music sector, focusing on performance rights organizations, catalogs, and services to capitalize on the industry’s evolving revenue landscape. This trend underscores the growing importance of music assets in the investment world.