Will a SESAC sale arrive during 2025? Multiple private equities are reportedly inquiring about a potential purchase. Photo Credit: SESAC
Is a SESAC sale in the cards for 2025? Possibly, as Blackstone is reportedly fielding private equity offers for the PRO.
That potential sale just recently entered the media spotlight, following New Mountain Capital’s purchase of BMI last year. Closer to 2024’s conclusion, Hellman & Friedman reportedly moved to scoop up a majority interest in Irving Azoff’s Global Music Rights (GMR) at a $3.3 billion valuation.
At least as described by Billboard, the GMR investment set the stage for multiple private equities to contact Blackstone exploring a deal for SESAC. To be sure, these prospective purchasers include several parties that unsuccessfully maneuvered to score a stake in GMR, per the mentioned source.
Furthermore, Blackstone is reportedly being selective in shopping the PRO – seemingly discussing terms with the same private equities that reached out as opposed to contacting others directly.
Of course, time will tell whether a sale comes to fruition, which price tag the transaction carries, and precisely which assets are included.
SESAC owns Audiam, the Harry Fox Agency, AudioSalad, and HAAWK, to name a few. Meanwhile, Blackstone in 2021 purchased eOne Music, later rebanded as MNRK and including Audio Network, from Hasbro for $385 million.
(MNRK president and CEO Chris Taylor abruptly resigned towards the end of June 2024, taking the company’s artist management division with him.)
With the benefit of hindsight and today’s rumblings of a SESAC sale, we can see that the PRO’s April 2024 expansion of a comprehensive “Music Services Division” probably wasn’t a coincidence. Billed as a one-stop licensing, admin, and royalty-collection hub, said division houses most of the above-noted subsidiaries as well as Rumblefish and more.
Judging by the continued investments in song rights and much else, there’s continued institutional enthusiasm about music assets’ long-term trajectory.
Stated bluntly, if BMI can find a buyer while being subject to a far-reaching consent decree, SESAC, which isn’t subject to a decree, can probably do the same if so inclined. (Likewise bound to a consent decree, ASCAP hasn’t hesitated to tout its status as the lone non-profit PRO in the wake of BMI’s sale.)
As things stand, the major labels and others are continuing to fire off acquisitions as well; Warner Music last year brought on an exec specifically to hunt for buyout opportunities. And the [PIAS] parent Universal Music in December announced the purchase (via Virgin) of Downtown Music.
Finally, though there’s something to be said for music assets’ aforementioned long-term value, it’s also worth highlighting the impact of across-the-board inflation. Against the backdrop of rising prices – and in an industry where it’s particularly difficult for new businesses to take on well-entrenched players – different companies yet are reportedly exploring decidedly massive sales of their own.
