Author: djfrosty

The majority ownership stake in Global Music Rights (GMR) is now in new hands after a deal that valued the boutique performance rights organization at $3.3 billion closed just before Christmas, sources tell Billboard. According to those sources, Hellman & Friedman, a San Francisco-based private equity firm, bought out Texas Pacific Group’s stake in GMR, as well as a slice of the minority equity stake held by the Azoff Company.
In the wake of the deal, sources say that Hellman & Friedman now owns nearly 90% of GMR, which was founded by Irving Azoff and Randy Grimmett in 2013. Moving forward, the Azoff Company and Grimmett — who also serves as CEO — will retain control of GMR’s operations, which is considered an essential ingredient to GMR’s continued success, given the affiliation with Azoff and his portfolio of companies that employ powerful industry executives.

Hellman & Friedman has not previously invested in music assets, but it was drawn to the stability and reliability inherent to the business of collecting music royalties. Those traits have made performance 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 fielding acquisition offers from interested parties.

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When Billboard first reported on the GMR deal in September, a source familiar with the matter said that the switch in majority ownership would not change anything “for 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 U.S. performance rights organizations, with the others being ASCAP, BMI and SESAC. While ASCAP and BMI operate under U.S. Department of Justice consent decrees and must accept any songwriter who applies as a member, SESAC and GMR are invitation-only societies. SESAC pioneered that strategy, although in the last five years, it has been quietly pruning its membership from 35,000 members in 2019 to 15,000 currently. 

GMR is even more exclusive, with a membership roster that numbers between 150 and 200 songwriters or songwriter estates, all of whom are considered to have star status as a writer or artist. That roster includes the likes of 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, Ira Gershwin, James Hetfield, John Lennon, Jon Bon Jovi, Lizzo, Nicki Minaj, Pete Townshend, Philip Lawrence, Post Malone, Prince, Ryan Tedder, Shane McAnally, Shawn Mendes, Slash, Smokey Robinson, Stephen Stills, Steve Miller, The Weeknd, Travis Scott and YoungBoy Never Broke Again, among others.

Even with a limited roster, GMR has grown into a powerhouse in the U.S., with estimated revenue of about $400 million to $450 million, sources say, with some suggesting that its net publisher share (NPS) — what the company retains after royalties are paid out — approaching 50% of the revenue estimate. Given that, if GMR had $200 million in NPS, that $3.3 billion valuation translates into a 16.5 times multiple.

Building a company from scratch into one that can command a $3.3 billion valuation in 10 years is a big accomplishment, several people say. Moreover, that valuation appears to have ignited a process that could see SESAC come up for sale, which Billboard reported last week (Dec. 24). As one music asset investor told Billboard, many private equity firms looked at GMR and were “all shocked by the final valuation … Those firms have a real appetite for music because music assets are doing well.”

Hellman & Friedman specializes in traditional buyouts in the technology and financial services sectors. Among media and entertainment companies, it previously invested in the German media company Axel Springer and Getty Images, although it has since sold its stakes in both companies.

Representatives for GMR, the Azoff Company and Hellman & Friedman did not respond immediately to requests for comment.