A majority stake in Global Music Rights (GMR) is now in new hands, sources say, valuing the boutique performing rights organization at $3.3 billion just before Christmas. advertising billboard. San Francisco-based private equity firm Hellman & Friedman acquired Texas Pacific Group’s stake in GMR, as well as some of Azoff’s minority stake, these sources said.
Following the deal, sources said Hellman & Friedman now owns nearly 90% of GMR, whose founder is Irving Azoff and Randy Grimmett 2013. Going forward, Azoff and Grimmett, who also serves as CEO, will retain control of GMR’s operations, which is considered important to GMR’s continued success given its affiliation with Azoff and its companies.
Hellman & Friedman had not previously invested in music assets, but it was attracted by the stability and reliability inherent in the business of collecting music royalties. These characteristics make performing rights organizations ripe targets for private equity funds interested in investing in music. BMI was acquired by New Mountain Capital in early 2024, and SESAC is said to be accepting takeover offers from interested parties.
when advertising billboard The GMR deal was first reported in September, with a person familiar with the matter saying that the change in majority ownership would not “result in any changes to the writers or the GMR management team.” GMR’s goal will remain the same: to transform the industry and bring more value to songwriters and their publishers.
GMR is one of four performing rights organizations in the United States, the others being ASCAP, BMI and SESAC. ASCAP and BMI operate under a U.S. Department of Justice consent decree and must accept any songwriter who applies for membership, while SESAC and GMR are invitation-only societies. SESAC pioneered this strategy, although over the past five years it has been quietly cutting its membership from 35,000 members in 2019 to 15,000 currently.
GMR is even more unique, with a membership roster of 150 to 200 songwriters or groups of songwriters, all of whom are considered to have star status as writers or artists. The list includes Bad Bunny, Billie Eilish, Billy Idol, Bob Seger, Bob Scaggs, Bruce Springsteen, Bruno Mars, Bryan Adams, Drake, Eddie Vedder, George Harrison, George Michael, Glenn Frey, Gwen Stefani, Harry Styles, Ella G Shivan/James Hetfield/John Lennon/Jon Bon Jovi/Lizzo/Nicki Minaj/Pete Townshend/Philip Lawrence/Post Malone/Prince/Ryan· Ted / Sean McAnally / Shawn Mendes / Slash / Smokey Robinson / Stephen Stills / Steve Miller Weeknd, Travis Scott and YoungBoy Never Broke Again wait.
Despite a limited roster, GMR has grown into a powerhouse in the U.S. with expected revenue of about $400 million to $450 million, sources said, with some saying its net publisher share (NPS) — the amount a company retains after paying royalties — is out of the equation. Close to 50% of revenue estimates. With this in mind, if GMR’s NPS is $200 million, a $3.3 billion valuation equates to 16.5x.
Some say building a company from scratch into one valued at $3.3 billion in 10 years is a monumental achievement. Furthermore, this valuation appears to have triggered a possible sale of SESAC, which advertising billboard reported last week (December 24). As one music asset investor puts it advertising billboardMany private equity firms looked at GMR and “were shocked by the final valuation…these firms have a genuine interest in music because music assets are performing well.”
Hellman & Friedman focuses on traditional acquisitions in the technology and financial services sectors. Among media and entertainment companies, it previously invested in German media companies Axel Springer and Getty Images, although it later sold stakes in both companies.
Representatives for GMR, Azoff Company and Hellman & Friedman did not immediately respond to requests for comment.
