Stock market fanfare is playing for Round Hill Music in a £375m deal
The owner of some of show business’s most famous plays – including Louis Armstrong’s “What a Wonderful World” – is leaving the London Stock Exchange.
Round Hill Music Royalty Fund has agreed to a £375m private equity takeover, which the company’s directors have backed after a difficult period for its share price.
The company is based in Nashville but listed in London. The majority of Round Hill’s catalog predates the year 2000, so much of it is less likely to generate airplay or streaming revenue for rights holders than newer titles.
Still, there are some big stars on the company’s books besides Armstrong. It owns rights to a catalog of tracks including early Beatles numbers, including I Saw You Standing There and some Rolling Stones songs. There are also tunes from The Supremes, Marvin Gaye and the timeless classic “When a Man Loves a Woman” by Calvin Lewis, made famous by Percy Sledge.
While streaming services now make access to old music easier, Round Hill Music admitted today that its business model has been hit by rising interest rates and inflation, which is driving up borrowing costs when the company previously owned assets including classic pop hits , acquired.
The board unanimously supported the deal.
The buyer is Concord Cadence, part of Alchemy Copyrights, which has been actively pursuing rights acquisitions and has spent over $2 billion since 2015 to become a major player in the industry.
Round Hill Music shares closed yesterday at $0.69. Investors will receive $1.15 in cash for each share they own, representing a transaction value of $469 million. It first listed in 2020 at $1 per share.
Robert Naylor, chairman, described the offer as “excellent value for shareholders”..”
Concord CEO Bob Valentine said, “Round Hill Music has built an impressive portfolio of music rights that generate revenue through a variety of revenue streams and has demonstrated its ability to stand the test of time.”
“As one of the world’s leading music companies with a proven track record of strategic catalog expansion, Concord has a global team of sync, licensing, marketing, copyright and royalty experts well-positioned to maximize the value of this portfolio.”
https://www.standard.co.uk/business/round-hill-music-louis-armstrong-beatles-stones-back-catalogie-music-rights-london-stock-exchange-b1105761.html Stock market fanfare is playing for Round Hill Music in a £375m deal
