Rimas Entertainment
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Sony Music Corp. is in the process of helping Bad Bunny manager Noah Assad — the CEO of Latin music label and management company Rimas Entertainment — buy out his partner, Rafael Ricardo Jiménez Dan, a former Venezuelan government official who has a 60% majority stake in the company, sources familiar with the matter tell Billboard.
Rimas — which manages, records and publishes Bad Bunny — also has a label and management roster that includes Arcángel, Eladio Carrión, Jowell & Randy and Tommy Torres. The company was founded in 2014 in Puerto Rico and now has about 100 employees.
According to sources, Sony will participate in a buyout of Jiménez, who has not been involved in running Rimas’ day-to-day operations since 2018. That will result in a reshuffling of the company’s ownership and will likely leave Bad Bunny with an equity stake in the firm— and either Assad, or the combination of Assad and Bad Bunny, with majority ownership.
However the deal is ultimately financed, Sony itself is expected to wind up with a significant minority share in Rimas, which it will assign to The Orchard, its rapidly growing music distribution and artists/label services powerhouse that currently distributes Rimas.
Billboard estimates that Rimas Entertainment — the record label and the management company — has a valuation above $300 million without including the company’s publishing assets, which sources say are not currently being considered as a part of this transaction.
Assad and Jimenez, respectively, also have the same 40–60% ownership stakes in the music publishing assets, Jiménez tells Billboard. The publishing company, which includes some Bad Bunny songs and was launched by Assad, Jiménez and lawyer Carlos Souffront, is also up for sale. The sellers are seeking a $70 million to $75 million valuation for the overall publishing company, those sources add. As on the recorded music side, Assad plans to retain his stake in the song catalog, which means that the Jiménez stake could potentially fetch $42 million to $45 million.
Assessing a valuation for the publishing deal is tricky, sources say, because many of Bad Bunny’s songs are still widely popular, which makes it harder to calculate how much their plays will decay until they level off and become a predictable income stream, likely in a decade or two from now. As it is, the Rimas publishing portfolio —which is currently being administered by Universal Music Publishing Group — has about $5 million to $7.5 million in net publisher share (gross profit after paying songwriter royalties), a level it is expected to maintain over the next few years.
The music publishing portion of Jiménez’s Rimas holdings have been shopped to private equity players, sources say, and there is currently no known buyer. That’s in contrast to the hoped-for sale of the label/management holdings, which appears to have only been offered to Sony. However, sources wonder if Assad has matching rights on the publishing assets, which means that he could also arrange a deal to buy the Jimenez publishing stake if he matches the highest offer.
Jiménez is being represented for the expected publishing sale by Brian Richards, co-founder and managing partner of the investment advisory firm Artisan. On the record label/management side of Rimas, sources say Jiménez is being advised by Mitchell, Silberberg & Krupp partner Joel Schoenfeld, the former general counsel of eMusic and BMG’s senior vp of business affairs before that; and by Colin Finkelstein, the former CFO for EMI Music, who sometimes consults with investors on music assets and also owns and runs a few artist management firms.
Both deals are said to be very complex, and sources say they have been in the works for months — with some wondering whether the deals have been stalled due to friction between the two partners, Jiménez and Assad.
Another looming issue may be how much financial capacity Sony Music Group has to close deals right now. As Sony negotiates the stake in Rimas, it is reportedly also in talks to acquire part — or possibly all — of the Michael Jackson estate in a deal that could carry a valuation of $1.5 billion to $2 billion.
The question is whether Sony’s corporate leadership in Japan has signed off on the funding and the completion of both deals and if the costs involved in the deals might force Sony to choose to between them.
If both deals are completed, sources suggest that they would likely still need to be approved by regulators. Under the Hart-Scott-Rodino Antitrust Improvements Act, as of Feb. 27, 2023, any merger and/or acquisition that has a transaction value of more than $111 million — or if the contemplated combined entity will have total assets of more than $445 million — must file and seek regulatory approval.
Assad, Jiménez, Sony, Finkelstein, Schoenfeld and Richards either declined to comment or didn’t respond to requests for comment.
Additional reporting by Alexei Barrionuevo
Bad Bunny‘s label and management company, Rimas Entertainment, is responding to accusations the super star artist “illegally used” an Afro-pop act’s song. Bunny’s team responded by saying they paid to use the material in question and, hence, its use in the track “Enséñame a Bailar” was not infringement.
Earlier on Thursday (Feb. 9), emPawa Africa founder Mr Eazi — himself a popular Nigerian singer — issued a press release claiming Bad Bunny used his artist Joeboy‘s song “Empty My Pocket” without consent in the track “Enséñame a Bailar” off Bad Bunny’s blockbuster 2022 album, Un Verano Sin Ti. Mr Eazi claimed he had been trying to settle the case privately since the record’s release nine months ago.
Listen to the first few seconds of two songs and the case could seem obvious. The jubilant rhythms of the Dëra-produced Joeboy track “Empty My Pocket” appear prominently as an interpolation and at the 2:30 minute mark on “Enséñame a Bailar,” where one can even faintly hear Joeboy’s vocals.
“We will not accept Bad Bunny and Rimas denying Joeboy and Dëra credits and a share in the ownership of a song they wrote, composed and, in Joeboy’s case, even performed on,” said Ikenna Nwagboso, co-founder and head of label services, distribution, and publishing with emPawa Africa, in a statement. “Give Joeboy his credit, publishing and royalties on the song, and give Dëra a producer credit alongside those already given to Bad Bunny’s Producers.”
emPawa Africa is demanding that Bad Bunny and Rimas Music grant Joeboy publishing, songwriting and feature credits on “Enséñame a Bailar,” and credit Dëra as the track’s co-producer. Though the statement seemed to threaten legal action, no lawsuit has yet been filed.
Not so fast, says Rimas Entertainment, which is denying any wrongdoing.
“We are deeply concerned by the copyright infringement accusations made by Oluwatosin Oluwole Ajibade (Mr Eazi), the founder of emPawa Africa, on the track ‘Enséñame a Bailar,’” a company spokesperson told Billboard Español in a statement. “We want to make it clear that at all times, Rimas Entertainment has acted properly and has followed standard industry protocols.”
The Rimas statement continues, “Before releasing [‘Enséñame a Bailar’], Rimas purchased the master track from record producer Lakizo Entertainment, listed as the track’s creator and owner in numerous public sources [editor’s note: including Spotify as of Thursday]. After the [‘Enséñame a Bailar’] release last year, emPawa contacted us, claiming ownership over the master. Our lawyers have had many communications with emPawa in an effort to resolve the ownership dispute between emPawa and Lakizo, but emPawa has so far failed to provide proof of ownership. Instead, emPawa has chosen only to send us a heavily redacted contract that did not confirm their claims and only served to raise more questions about the validity of their claims. Our numerous efforts to obtain the unredacted version of the agreement from emPawa have not been successful. It is entirely untrue that we have been unresponsive.”
For an artist to sample another act’s track, they must typically clear master and publishing rights for the recording and underlying composition, respectively. At time of publishing, a Rimas could not confirm whether the company had secured rights use the “Empty My Pocket” composition, but in the company’s statement noted, “Regarding the song’s composition, emPawa has also failed to forward documents to prove that they are authorized to act on the writer’s behalf.”
The Rimas statement concluded, “We look forward to resolving this matter cordially and are waiting for emPawa to provide us with the necessary documents that validate their claims.”
In 2019, Mr Eazi and Bad Bunny actually collaborated on the outro track “Como Un Bebé” — produced by Nigerian duo Legendury Beatz — off Bunny and J Balvin’s joint album Oasis.
Un Verano Sin Ti was released on May 6, 2022, becoming just the second Spanish-language album to reach No. 1 on the 66-year old chart Billboard 200. (the first was Bunny’s previous album, 2020’s El Último Tour del Mundo). It also became Spotify and Apple Music’s most-streamed album in the U.S. and globally.
Rapper Vico C has signed a record deal with Nain Music, a division of Rimas Entertainment, Billboard has learned.
Previously signed to EMI Latin, where he released albums such as En Honor a la Verdad and Desahogo following his release from prison in the early 2000s, Vico C is kicking off a new phase in his career with a new deal and an upcoming studio album due in May.
“During these times, when it’s a great necessity to put out content that’s pure, a new platform opens to continue to do what I’ve always done with my music: touch hearts and revolutionize a lost society,” Vico C said in a statement. “That’s why I think the most important part of my union with Nain/Rimas is the liberty they’ve given me to express what I want.”
The Puerto Rican artist, born Luis Armando Lozada Cruz, became one of the most recognized and respected Latin rap artists of the 90s with songs such as “Me Acuerdo,” “Bomba Para Afincar,” “La Recta Final” and “Viernes 13.” On the charts, Vico C has eight entries on Billboard‘s Top Latin Albums, three hit the top 10, and three entries on both Hot Latin Songs and Latin Airplay.
“It’s a privilege to work with an artist of this stature with a great trajectory like Vico, who’s legacy in Latin music and and in the new generations is still in full force,” added Fidel Hernández, CEO of Nain Music.
Vico C is managed by his wife Sonia Torres.