However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Why Did Shamrock Capital Spend $300 Million on Old Taylor Swift Albums? She could defy whats worked in the past., For her part, Charlesworth thinks the new versions could be disruptive. Editors picks Cottonwood Heights, Utah 84121, Terms and Conditions Apply. Taylor Swift's company, TAS Rights Management, filed 25 trademark applications on February 10th and 11th for variations of "TAYLOR'S VERSION.". SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. It is intended to provide a bridge between project valuation and firm valuation in a corporate finance course. Members get exclusive SoFi Stadium perks like expedited entry, access to the SoFi Member Lounge, and more. Just want to talk? SOSS111803. To be clear, Swift still doesn't own the sound recordings used in the original versions of her albumsthose continue to belong to Shamrock Capital Advisors. Exclusive member events to build your future, community, and career. In 2008, Mr. Gerben started the firm to provide high-quality trademark services at reasonable prices. What Is Shamrock Capital, the New Owner of Six Taylor Swift Albums? Since 2021, Red (Taylors Version) has generated 2.6 times more on-demand audio streams than the original version, while Fearless (Taylors Version) has about 1.9 times as many on-demand audio streams. (3) Estimate the cost of capital using industry comparables. In November 2020, Shamrock acquired ownership of the master recordings of Taylor Swift's first six studio albums from Big Machine Records (2006-2017), which itself had been sold to media manager Scooter Braun's Ithaca . It paid more than $300 million for the rights to Swift's master recordings stretching back to 2006, including all the songs from "Taylor Swift," "Fearless," "Speak Now," "Red," "1989" and "Reputation." What happened? Swift has complained bitterly about the acquisition of her former label, Big Machine Records, by artist manager Scooter Brauns Ithaca Holdings since it took place in June of last year, in part because she says she wasnt given a viable option to purchase the rights to the master recordings of her first six albums, but also because of the deep personal animus she holds for Braun, whom shes labeled a bully. Since then, she has resisted cooperating with the exploitation of those assets, even pledging to re-record each of those albums, as soon as she is contractually able to do so, in an effort to lessen the value of the originals. Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. Taylor Swifts master recordings for her first six albums have sold to Shamrock Capital, a private equity firm, for $300 million. (Reps for Big Machine, Universal and Swift did not immediately respond to Varietys requests for comment on this article. Shamrock says that its Content Fund III LP is focused on snapping up a diverse and global portfolio of content and media rights. Oak View Group Wins Deals With Tulsa's BOK Center, Chicago's Radio Reacts to Jason Aldean's 'Try That in a Small Town' As Les Claypool Reflects on His Career & All Star Collaborations: Ive Been Very Fortunate, Toad the Wet Sprocket Recalls Performing a Kiss Song With Jon Bon Jovi: Behind the Setlist Podcast, purchased Swifts Big Machine catalog in 2020, Oak View Group Wins Deals With Tulsas BOK Center, Chicagos McCormick Place, Radio Reacts to Jason Aldeans Try That in a Small Town As It Climbs the Country Airplay Chart, Daniel Ek Sells $100M in Spotify Stock Following Earnings Report, Everything Old Can Be New Again Thanks to AI. Its a risk, he continues, but I think its a containable risk from an investment perspective. Also if Taylor is not prepared to promote any re-release (and she clearly isn't) any marketing effort is likely to be wasted. But under her current deal with Republic Records and Universal Music Group, she will own the masters of everything she records, going forward. | PAST RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Our Content strategy invests in and/or finances entertainment IP and media rights across a diverse set of asset classes that includes film, TV, music, games, and sports. You can unsubscribe from said promotional emails at any time. "This is the second time my music had been sold without my knowledge," Swift said in her Twitter post Monday. The deal between Shamrock Capital and Ithaca, as well Taylor Swift's reaction to the sale, have already made waves . The telecom giant saw its stock price erode by nearly 2.5% . The corporate says it's going to use the funds "to capitalize on tendencies . Special Report: Future of Music 2023 To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi's underwriting requirements. analyse how our Sites are used. Whether or not Swift re-recorded the three albums, Shamrock would benefit only from the sales of the original versions. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Experts have mixed opinions. We are grateful for the continued support of our longstanding investors and welcome our new investors as Shamrock looks to continue generating compelling returns for our limited partners around our investment themes, said Steve Royer, Partner at Shamrock Capital. MBW occasionally sends important promotional emails that involve strategic collaborations with industry partners. Ultimately, however, Swifts re-recordings may be more responsible for her consumption boom than the original Big Machine versions. The Beautiful Eyes EP (which everyone suddenly remembered and wants) is going for $100-200! Learn more about our mission and values, how we started, and what weve accomplished since then. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. But, Charlesworth continues, noting Swifts dedicated fan base, if even half of those plays are of her re-records rather than the originals, that will cut Shamrocks core revenue stream., Swift looms large on 2020s music landscape, with Alpha Data showing her to be the most consumed artist of the year to date, with 3.5 million album project units (album sales, plus the equivalent value of song sales and streams). Red performed better but was also off the markets pace. Members get 15% off their trust, will, or guardianship estate plans. I havent yet quite got my head around why Scooter Braun might continue to earn a revenue stream from Swifts recordings now theyre owned by Shamrock but the fact the investment fund also appears to own or co-own rights to the artwork of her first six album sleeves is, potentially, a prosperous piece of business. He writes a weekly column for Rolling Stone. Shamrock is based in Los Angeles and was founded by Roy Disney, Walt Disneys nephew. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. Shamrock, don't forget, didn't buy Swift's publishing. The investment fund has paid $300 million for Taylor Swift's old music even as she's re-recording those same songs a move that might seem dumb, but could actually pay off in droves, Taylor Swift performs onstage during the 2019 American Music Awards at Microsoft Theater on November 24, 2019 in Los Angeles, California. Twenty-One Numbers That Tell the Future of Music, Lets Break Down the Mind-Blowing Money in Universal Musics IPO. Shamrock will continue to invest in companies that are involved in the convergence and transformation taking place within media, entertainment and communications.. Meet our panel of SoFi Members who provide invaluable feedback across all our products and services. cant find anywhere else. 2023 Billboard Media, LLC. That being said, what is Shamrock doing to try and make up some of that damage? See Taylor Swift Debut 'Right Where You Left Me' Live With Aaron Dessner in Santa Clara These emails form part of the service you elect to receive when you subscribe to any of MBW's free email services. All Rights Reserved. (Worth noting: Swifts 2008 hit Love Story recently saw a major resurgence on TikTok thanks to an unofficial house remix of the song by DJ Disco Lines, which has inspired a slew of viral challenges. Right now on sites like ebay, Deluxe editions of 1989, Red, Speak Now, Fearless and Debut are going for $45-75 dollars, even up to $100. This would lessen the value of the masters Shamrock purchased. Perhaps this: According to stats released by the RIAA, the US recorded music industry in 2019 generated $11.1 billion in gross revenues but only 2.5% of this figure was generated by synchronization fees (i.e. sold the master recordings to her first six albums, a similar $300 million-ish price tag last summer, Darell Breaks Down the Surprises and Smash Collabs from His New Album 'Everybody Go to the Discotek', Lizzo Drops the 'Bad Day' Version of Her 'Barbie Album' Standout 'Pink', 'Spider-Man: Beyond the Spider-Verse' Removed From 2024 Release Date, See Taylor Swift Debut 'Right Where You Left Me' Live With Aaron Dessner in Santa Clara. Swift says her unwillingness to participate in Shamrocks stewardship of her albums is at least partially due to her understanding that Braun will continue to profit from those titles. Had the albums streams grown in line with the industrys annual growth in on-demand audio streams 17.3% in 2020, 12.7% in 2021 and 12.2% in 2022 Red would have had 420.6 million on-demand audio streams. In the 18 weeks before the release of Red (Taylors Version) on Nov. 11, 2021, the original version averaged 9.7 million on-demand audio streams per week. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. - Rolling Stone RS Pro Why Did Shamrock Capital Spend $300 Million on Old Taylor Swift Albums? Swift announced that she will be re-recording all six albums made under her previous label, Big Machine Records, all of which have since been sold to Shamrock Capital. We will continue to partner with management teams that are leading companies in some of the most dynamic parts of our economy, including the creator economy, talent and content, gaming, sports betting, marketing services, infrastructure, personal/professional betterment platforms, and the technological platforms that power this transformation., Shamrocks current private equity investments in media include the likes of Ad Results Media, Adweek, Appetize, Bayard Advertising, Branded Cities, Canopy Spectrum, DeCurtis, Excel Sports Management and others.Music Business Worldwide. Very deep, The UFO whistleblower and the search for extraterrestrial life, The $1bn gamble to bring cricket back to America, How a southern Italian crime familys reign ended in tragedy. Now, the Los Angeles-based investment firm, which has approximately $3.5 billion of total assets under management, has closed a new $1 billion growth fund, entitled Shamrock Capital Growth Fund V. While Shamrocks announcement of the new fund doesnt list music-related investments as a target specifically, it does state that the fund will be focused on buyouts and later-stage growth equity investments within three target industries: media, entertainment, and communications. While there is considerable debate over whether Shamrocks bid makes economic sense, all sides agree on a few things. On a generally down Tuesday for the stock market, Verizon Communications' (NYSE: VZ) shares did worse than those of many other companies. Nobodys going to want to listen to her re-recorded versions: Thats not the way the world works, although she could re-record and use them for syncs., Ives isnt so sure, noting Swifts almost unparalleled ability to mobilize her dozens-of-millions-strong fan base. And how can even the most diehard Swift fans ensure theyre always streaming the new albums and not the old recordings by accident (especially when such choices are increasingly at the mercy of Alexa)? Please allow 10 minutes after purchasing for delivery of your electronic materials. We use Shamrock are just a private equity bucket and won't want the hassle of doing anything more than counting the cash from streaming. Get access to experienced career coachescomplimentary for all SoFi members. [11] Shamrock Capital: Pricing Taylor Swift's Masters. Comments? Austin Daboh on music, tech, AI, and the future of artist marketing. (2) Stimulate an appreciation and understanding of the perpetuity model for estimating terminal value. Between the lines: Swift has been feuding with music magnate Braun since he acquired her former record label, Big Machine, and its assets last year. Variety is a part of Penske Media Corporation. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. Currently, investors are particularly eager to buy the rights to classic songs like Swifts hits. In 2020, the "institutionally backed" investment firm Shamrockoriginally founded in 1978 by Roy E. Disney as Shamrock Holdingsacquired six Taylor Swift albums from Scooter Braun's Ithaca. 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Its the best job in the world at that point', Daniel Ek sells $100m worth of Spotify shares, 'Super listeners' make up 2% of artists' monthly listeners on Spotify, but account for over 18% of monthly streams, Sir Lucian Grainge on rewarding 'real' artists, Universal's global expansion strategy and more from the company's Q2 earnings call. The 500 Greatest Songs of All Time Sources also say its doubtful that UMG was unaware of the Shamrock transaction when it recommitted to the label, leading sources to believe Swifts first six albums will continue to move through Big Machine. The original versions owned by Shamrock did well through 2022 and havent shown much clear evidence of attrition until 2023, according to Billboards analysis of Luminate sales and streaming data in the United States. The original version of Swifts 2012 album Red did even better than Fearless, generating 283.5 million on-demand audio streams in 2019 and 484.7 million on-demand audio streams in 2022, about 19% greater than what would be expected. Copyright 2022 Darden Business Publishing. Copyright 2023 Shamrock Capital Advisors, LLC. The dispute began last year, when Braun's media company Ithaca Holdings bought Big Machine Label Group and with it, the original recordings of her first six albums. ), Another attorney notes that just as a label might re-up with an influential but past-their-prime artist in an effort to attract other artists, Shamrock may have made this play to bolster its music profile. Facing demands for ad hoc school holidays while Swift is in town, Singapore's education minister, Chan Chun Sing, said on Facebook that granting time off "may further fuel inflation". This time, Swift attached a letter she'd sent Shamrock Capital the previous month, upon learning of its acquisition of her masters. If youd like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. Swift herself has confirmed that Shamrock is the mystery buyer to have acquired the master rights to Swift's first six albums from Scooter . Its an eye-popping price tag, says Daniel Ives, managing director of equity research at Wedbush Securities. People really like music. This is the second time in a year and a half that the rights to hits like Love Story, Shake It Off, and We Are Never Ever Getting Back Together have changed ownership. Although many questions remain about the logistics of Shamrocks purchase, the issue of whether Swifts masters will land outside the orbit of Universal Music Group may have been settled by another development: Three informed sources tell Variety that around the same time the Shamrock deal was struck, Big Machine extended its distribution agreement with Universal, with her pre-2019 recordings remaining with the label. This independent artist has over a billion streams on Spotify. We all know that swifties are still collecting the OG vinyls because vinyl is in. The deal was believed to be worth over $300 million, according to reports. Los Angeles-based private equity firm Shamrock Capital is the mystery buyer of Taylor Swift's master recordings for her first six albums. Get this delivered to your inbox, and more info about our products and services. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Wont consumers, not to mention advertisers, ultimately want to hear the version of these songs that soundtracked their first kiss, their wedding dance, their teenage heartbreak? Of the 3.5 million album-project units she has earned this year, 2.3 million belong to Folklore, which also accounts for all but 210,000 of the 1.3 million album units shes totaled. Similarly, her 2019 album Lover accounted for 2.3 million of her 3.4 million album project units last year, and all but 285,000 of the 1.3 million album sales she rang up. From their public statement, it seems Shamrock knew that Taylor might not want to participate in their ownership of the masters and factored that into the purchase price, she says. A subreddit for everything related to Taylor Swift. the money paid when music is used in a commercial format like an ad or TV show). At the same time, Swifts re-recordings have done phenomenally well. Swifts doing fine on that score, obviously this years Folklore is one of her most popular and acclaimed albums yet but, years from now, will she really turn down such a lucrative opportunity out of enmity towards Braun? Will Swifts pledge to re-record her back catalog deeply devalue Shamrocks investment, or will fans favor the versions they already know and love? Grohl was recently informed that Swift is rerecording her entire music catalogue in an attempt to reclaim her first six albums after the masters were sold to Shamrock Capital, after previously . You are now leaving the SoFi website and entering a third-party website. . Shamrock was surprisingly unflustered about Taylor Swifts public refusal to endorse the firms acquisition of her recordings. Its important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. Its not like Journey putting out a new record that no one would care about., Shamrock doesnt own publishing rights to Swifts Big Machine catalog, and the artists unwillingness to further sync opportunities could impact the value of Shamrocks investment. Pop singer Swift said in a post on Twitter on Monday that her team received a letter a few weeks ago from Shamrock Holdings the private equity firm founded by Roy Disney notifying her that it had bought her original recordings, known as "masters," from Braun. Swift's re-record of her 2008 hit, "Love Story," sold 125,000 copies this week, 90 percent of the sales from streaming. Many insiders have been scratching their heads over Shamrocks motivations in the last 24 hours. You cant knock Scooter on this one, says Peter Paterno, partner at King, Holmes, Paterno & Soriano. Had Fearless matched the markets growth, the album would have generated about 296 million streams through week 28. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content. Josh Gerben, Esq. Send us a tip using our anonymous form. Any changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel. cookies This site is protected by reCAPTCHA Enterprise and the Google. New comments cannot be posted and votes cannot be cast. The deal was believed to be worth over $300 million, according to Variety, which first reported the story on Monday. Lets also suppose she gets good support from the likes of Spotify and YouTube to promote the re-recorded albums,and that Taylors army of Swifties do their duty, rinsing plays of her new masters in place of her Shamrock-owned originals. It's unclear if this new transaction will satisfy Swift, who did not participate. We support credit card, debit card and PayPal payments. Brands displayed neither endorse or sponsor this article. Taylor Swift just can't seem to shake off private equity. However these are all being really sporadically pressed. MBW does not and will not share your data with any third-parties. He characterizes her catalog as a crown jewel of an asset, even if she re-records. Any assets related to hit songs are undervalued, the source says. All rights reserved. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. Shamrock Holdings has bought the rights to years of Taylor Swift's music, videos, and art from Scooter Braun but the star says she is going back in the studio to re-record those songs . Through 2022, Swifts Big Machine catalog has performed roughly in line with industry trends. But whats the thinking from Shamrock Capital (aka Shamrock Holdings), the quiet Los Angeles-based investment company that splurged over $300 million to acquire Swifts masters from Braun? Considering the vastness of her talent, Im going to go ahead and suggest theyll be of tip-top quality. The contents of this blog are for informational purposes only and may not be relied on as legal advice. Check if your And neither side questions the appeal of Swifts music. Swift has been trying buy back her masters for the past year but said Braun's team wanted her to sign an "ironclad" non-disclosure agreement before seeing Big Machine's financial records, "which is always the first steps in a purchase of this nature." After news of the acquisition broke, the singer announced on social media that she plans to re-record the songs on her new label. Why arent they putting new merchandise out, if they own all the pictures from her photoshoots? Ithaca originally paid a reported $300 million for Big Machine Label group in June of 2019. L Los Angeles-based private equity firm Shamrock Capital raised $600 million in a new fund aimed at acquiring film, television, music, video games and sports rights, the company announced. You may change or cancel your subscription or trial at any time online. recently raised $400 million for its "Shamrock Capital Content Fund II" to acquire entertainment intellectual-property rights in the industries of . ", Swift said her legal team told her this was "absolutely not normal" and that they'd only an NDA like this to "silence an assault accuser by paying them off. Refer your friends & family to SoFi and get paid. That could be seen as another blow for Shamrock Capital, which purchased Swift's Big Machine catalog in 2020. The original version of Red has sold more albums 26,000 through week 28 of 2023 than in all of 2022 and is already close to surpassing sales numbers for calendar years 2019, 2020 and 2021. 10 years ago, a record label told him his music was unreleasable. Im not the first music biz watcher to have doubts over the prospect of re-records usurping the tracks theyre looking to replace. Sign up for free newsletters and get more CNBC delivered to your inbox. All Rights Reserved. This case is designed to introduce the principles of firm valuation and includes opportunities for the instructor to explore any of the following teaching objectives: (1) Introduce firm valuation techniques based on a simple DCF model or market multiples. All in all, I think its a risky proposition to bet against Taylor Swift., Another prominent attorney also casts a skeptical tone. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. Theres all sorts of ways to stay involved, but the most common historically have been these look-back provisions, where if the catalog earns X over a five-year period of time, we will pay you an extra Y. Its kind of like schmuck insurance that protects you., Indeed, a source says thats exactly the deal that Braun worked out, and indicative of the sort of IP banking were likely to see more of in the future.

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