Sony Music Bids for Queen’s $1bn Catalogue

Sony Music has formed a new financial entity dubbed “Rock Bidco” as it bids for the music catalogue of the iconic British rock band Queen. This move is part of an ongoing effort, with Queen seeking a valuation exceeding $1 billion for their catalogue, which includes recorded music, publishing rights, merchandise, licensing, and revenue from the biographical film “Bohemian Rhapsody.”

Incorporated on May 17, Rock Bidco is managed by Tim Major, co-leader of Sony Music Publishing. For over a year, Queen has been negotiating with major players in the music industry, including Sony Music and Universal Music. However, Universal stepped back after an exclusivity period due to the high asking price.

The deal, if completed, would involve Sony partnering with another financing entity. In a similar precedent, Sony previously co-financed the $500 million-plus acquisition of Bruce Springsteen’s catalogue with Eldridge Industries, owned by Todd Boehly.

Music catalogues have garnered significant investment interest due to the consistent revenue they generate through sales and streaming. Notably, artists like Bob Dylan, Springsteen, and Neil Young have sold their catalogues for substantial sums. In addition, Kiss recently sold their music and likeness rights for $300 million to Pophouse Entertainment.

Queen, lauded as one of the most commercially successful bands ever with over 300 million records sold globally, continues to generate impressive annual royalty revenue, pegged at around $45 million by Billboard. The band’s music remains timeless, with hits like “Bohemian Rhapsody” being among the most-streamed rock songs.

As industry giants Sony Music and Disney Music Group, which holds Queen rights in North America, remain tight-lipped, the potential $1 billion sale marks a significant moment in music catalogue acquisitions.