ZZ Top sells music catalog for $50M to BMG, investment firm

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ZZ Top is promoting its music catalog to investment firm KKR and file company BMG for $50 million, in accordance to a report.

The legendary Texas trio, recognized for hits like “Legs,” “Cheap Sunglasses” and “Gimme All Your Lovin,’” bought their music pursuits, which incorporates the publishing catalog in addition to earnings from recorded music royalties and efficiency royalties, The Wall Street Journal reported Tuesday.

The sale follows a slew of high-profile offers during which legendary rock stars are cashing out. Earlier this month, Bruce Springsteen reportedly bought his iconic tune and publishing catalog to Sony Music for a whopping $500 million.

Last year, Bob Dylan bought his large 600-song catalog to Universal Music Publishing Group for a reported $300 million to $400 million in December 2020. Around the identical time, Fleetwood Mac singer-songwriter Stevie Nicks bought 80 p.c of her rights to her personal songwriting catalog, together with hits like “Landslide” and “Edge of Seventeen,” to music writer Primary Wave for a reported $100 million.

And in accordance to reviews final month, Universal Music Group has been upfront talks with Sting to purchase his music for $250 million, whereas Warner Music Group is elevating $535 million to purchase David Bowie’s music.

The ZZ Top deal consists of 15 albums launched over a 50-year span, together with the business breakthrough “Tres Hombres” in 1973, “Degüello,” “El Loco,” “Eliminator,” “Afterburner,” “Recycler” and “Antenna.”

Dusty Hill of ZZ Top handed away in July amid the band’s North American tour, which is slated to run via spring 2022.
Redferns/Getty Images

The trio of Billy Gibbons, Dusty Hill and Frank Beard shaped ZZ Top within the late Sixties. Known for their distinctive lengthy purple beards, the band was was inducted into the Rock & Roll Hall of Fame in 2004. Hill died in July at age 72 throughout the band’s North American tour, which is slated to run via spring 2022.

The offers are a part of an extended string of established artists promoting their songbooks to deep-pocketed traders or music labels. They’re additionally fueled by streaming, which gives the potential for extra profitable royalties as prospects flock to providers like Spotify and Apple Music.

And offers have ramped up throughout the coronavirus pandemic due partially to low rates of interest that make it simpler for corporations to borrow money to buy giant property.

The sale of ZZ Top’s music catalog follows a development, during which legendary rockers are cashing out on their work.
R. Diamond/WireImage

According to The Journal, BMG Rights Management—each a file label and writer, and a subsidiary of Germany’s Bertelsmann SE—and KKR in March joined forces to spend not less than $1 billion on music copyrights. Last January, KKR inked a $200 million deal for majority stake in Ryan Tedder’s catolog of hits, together with songs from Beyoncé, Adele, Stevie Wonder and Tedder’s band, OneRepublic.

In October, KKR spent $1.1 billion on investment advisory firm Kobalt Capital’s KMR Music Royalties II portfolio, which incorporates greater than 62,000 copyrights throughout music genres, The Journal stated.

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