Round Hill shares a £376m music deal
Shares in the copyright holder of a number of songs by the Supremes and Louis Armstrong rose 64 per cent yesterday after the company agreed a £376m US takeover.
Round Hill Music Royalty (RHM), whose catalog includes more than 150,000 songs including Meat Loaf’s “I’d Do Anything For Love (But I Won’t Do That),” announced a deal with Nashville-based Concord known.
The announcement also put the spotlight on London-listed rival Hipgnosis, whose shares rose more than 15.6 percent on speculation that it could also prove an attractive takeover target. The catalog includes songs by Shakira and Neil Young.
RHM was founded by Josh Gruss, a former Bear Stearns investment banker who also previously worked in the music industry.
Gruss will earn around £24 million for his stake in the company.
Concord CEO Bob Valentine said RHM has “built an impressive portfolio of music rights that generate revenue through a variety of revenue streams.”
RHM’s catalog focuses on “evergreen” music created before 2010. His business is to spend money on musicians’ old catalogs and give them a one-time compensation. Revenue is generated when the songs are played on the radio or on streaming platforms.
The top-grossing song last year was Eric Carmen’s sad 1975 hit “All By Myself,” followed by Louis Armstrong’s “What A Wonderful World.”
They helped the company earn royalties of £29 million and profits of £850,000 last year.