Blackstone (BX.US) is exploring selling the copyrights of songs by famous musicians such as Adele, estimated to be worth over 3 billion US dollars.

According to informed sources, Blackstone Group (BX.US) is actively seeking to sell its song copyrights, which cover works by renowned musicians such as Bob Dylan, Adele, and Ariana Grande. It is expected that the total value of the song copyrights being sold will reach or exceed $3 billion, a news that has garnered widespread industry attention. Several prominent financial companies, including Apollo Global Management Inc., Warburg Pincus LLC, and Temasek Holdings Pte from Singapore, have reportedly shown strong interest in acquiring these assets from Blackstone. However, since these discussions are still being conducted in private, specific details have not been disclosed by the sources, and uncertainties remain as to whether all parties will ultimately reach an agreement. As one of the world's largest asset management companies, Blackstone's sale of song copyrights is seen as a significant move in testing the music performance rights market. The company owns a series of businesses led by SESAC, an organization responsible for collecting royalties for thousands of songwriters. SESAC, originally known as the European Society of Stage Authors and Composers, primarily licenses music for public performance, such as the use of music in TV shows like "Grey's Anatomy," NBC's "Dateline," and "The O.C." After private equity giant TPG Inc. sold its stake in another performance rights group GMR for $3.3 billion, some potential buyers began reaching out to Blackstone in hopes of securing similar valuation terms. However, some sources have pointed out that this price may be too high for certain buyers, so finalizing the transaction may take some time. Blackstone acquired SESAC in 2017 for an estimated value of around $1 billion, and with the rise of the streaming industry, valuations in the music industry have soared. According to industry trade organizations, global recorded music revenue has more than doubled over the past decade and is expected to reach $28.6 billion by 2023. Universal Music Group NV, the world's largest music company, went public in 2021 with a current valuation of around $46 billion. Against this backdrop, financial companies continue to seek new ways to invest in the music industry, pouring significant amounts of capital into music catalogs, distribution, service providers, and performance rights organizations. In July of this year, Blackstone acquired the music catalog owner Hipgnosis for $1.6 billion. A year ago, it was reported that private equity firm New Mountain Capital bought one of the largest performing rights organizations, BMI, for $1.7 billion. It is worth noting that performance rights have always been a relatively obscure part of the music industry. The two main players - the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI) - dominate about 90% of the market and collect fees based on a 1941 federal consent decree. SESAC and GMR, as newer entities, although smaller in size, are not bound by the decree, resulting in higher profits, faster growth, and more added value for investors. These performing rights organizations not only collect royalties from songwriters through radio stations but are also starting to generate revenue from streaming platforms. As the music industry continues to evolve, these emerging performance rights organizations are becoming a focus of investor attention.