Jason Peterson, CEO of GoDigital Media Group (GDMG), recently told MBW that his company has seen revenue increase 10-fold in just four years – and that it has a “huge pipeline” of acquisitions ahead.
Today (September 13), one of these acquisitions is making headlines in the music industry: GDMG, headquartered in Los Angeles, has partnered with MEP Capital to acquire Sound Royalties, the platform. A form of music finance that provides advances to artists and rights holders based on expected future royalty income. .
Peterson did not disclose the price of the deal but confirmed that it was a “high eight-figure buy” – meaning tens of millions of dollars – backed by funding of the MEP.
Sound Royalties, who has worked with DJ Khaled, Lil Wayne, Pitbull and Wyclef Jean, joins a portfolio of companies at GDMG which also includes Five Music Group. Five is a label / rights management company that has a strong presence in Latin music and represents the repertoire of artists such as Bad Bunny, Janet Jackson, Jason Derulo and TI
Other music-related GDMG subsidiaries include AdShare and VidaPrimo, as well as specialist video networks such as Latido Music, Mitú and YogaWorks.
Sound Royalties is able to process transactions from $ 5,000 to tens of millions of dollars. Creators can keep their copyright and royalty cash flow above the amount funded by the company.
“Sound Royalties provides a must-have solution to the music industry for creators and rights holders who are looking for funding but don’t want to sell their rights in perpetuity. “
“Our mission at GoDigital is to inspire happiness by sharing creativity,” said Peterson. “Sound Royalties is a logical investment for GDMG and MEP, given how the company and the team are perfectly aligned with our thesis that music rights are the best alternative investment in the creative industries right now.
“Artists, songwriters and producers are all businesses and, like businesses in any other industry, need access to capital in order to grow. Sound Royalties provides a must-have solution to the music industry for creators and rights holders who are looking for funding but do not wish to sell their rights in perpetuity.
“The service allows creators to focus on what they do best: making music. We are also delighted to say that the current management team will remain in place and that representatives from GDMG and MEP will join the board. “
Alex Heiche, CEO of Sound Royalties, said: “Sound Royalties was founded on the principle of protecting the rights of creators and providing individualized, customer-centric solutions.
“We are delighted to join the GoDigital family, which will allow us to extend our technology platform and grow faster, while preserving the ability for creatives to speak and work directly with our experienced royalty specialists for their own sake. ” ensure they receive the best funding that meets their specific needs.
Sound Royalties, LLC was founded in 2014 by Alex Heiche and backed by York Capital to provide royalty-based financing services to music creators.
The company provides funding against future royalties from all major collecting societies, labels, publishers and distributors.
In 2017, via an injection of $ 20 million, he financed Five’s acquisition of more than $ 10 million of a catalog of main rights recorded by the hip-hop star TI at Atlantic Records.
Two years later, GoDigital injected an additional $ 40 million into Five – Money which was then used to sign Janet Jackson and buy the Beluga Heights label, including her share of the Jason Derulo catalog.Music trade around the world