Big Sale Big Machine Label Group
As first reported on ALL ACCESS early YESTERDAY morning (NET NEWS 6/30), SCOOTER BRAUN's ITHACA HOLDINGS LLC has finalized a deal to buy BIG MACHINE LABEL GROUP (BMLG) for an undisclosed price.
The deal was actively discussed and widely covered across all media, with postings by TAYLOR SWIFT and BMLG Founder/Pres./CEO SCOTT BORCHETTA (see below), among others. BORCHETTA will remain in his positions and will join the ITHACA board and hold a minority interest in ITHACA. The label's operations will continue to be based in NASHVILLE.
THE CARLYLE GROUP, an investor in ITHACA since 2017, is backing the deal with an additional equity investment via its CARLYLE PARTNERS VI fund, remaining a minority shareholder in ITHACA. CARLYLE's Head of Global Consumer, Media and Retail JAY SAMMONS is continuing on ITHACA's board. The WALL STREET JOURNAL, citing sources "close to the matter," is estimating the value of the deal at around $300 million.
"The idea of SCOTT and I working together is nothing new, we've been talking about it since the beginning of our friendship," said BRAUN. "I reached out to him when I saw an opportunity and, after many conversations, realized our visions were aligned. He's built a brilliant company full of iconic songs and artists. Who wouldn't want to be a part of that? By joining together, we will create more opportunities for artists than ever before, by giving them the support and tools to go after whatever dreams they wish to pursue."
"SCOOTER and I have been aligned with 'big vision brings big results' from the very first time we met in 2010," said BORCHETTA. "Since then I have watched him build an incredible and diverse company that is a perfect complement to the BIG MACHINE LABEL GROUP. Our artist-first spirit and combined roster of talent, executives, and assets is now a global force to be reckoned with. This is a very special day and the beginning of what is sure to be a fantastic partnership and historic run."
BMLG holds the rights to the first six SWIFT albums, and has a roster that includes LADY ANTEBELLUM, FLORIDA GEORGIA LINE, THOMAS RHETT, SHERYL CROW, RASCAL FLATTS, and many others. Its imprints include BIG MACHINE RECORDS, BMLG RECORDS, THE VALORY MUSIC CO., BIG MACHINE/JOHN VARVATOS RECORDS and publishing arm BIG MACHINE MUSIC.
Taylor Swift Responds
SWIFT, who left BMLG to sign with UNIVERSAL MUSIC GROUP (UMG) last NOVEMBER, launched a quick response to the newly-announced deal on TUMBLR. She indicated her displeasure at how it all transpired, and what it means for her in terms of getting the chance to own her older masters. Her new album, "Lover," hits the streets AUGUST 23rd through UMG's REPUBLIC RECORDS.
Scott Borchetta Writes
SCOTT BORCHETTA has posted a letter in response to TAYLOR SWIFT's TUMBLR comments above. BORCHETTA's letter is published on the BMLG site. It's titled, "So, it’s time for some truth …"
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