The global music industry has grown rapidly in the past five years as increasing numbers of listeners head for streaming services, but traditional areas of investment such as revenues from royalties have suffered in the face of high interest rates.
On Tuesday, the Financial Times reported — citing sources familiar with the matter — that private equity group KKR & Co Inc (NYSE:KKR) hired bankers to evaluate the possible sale of its music assets after interest from potential buyers.
KKR owns a catalogue of some 65,000 songs — including tunes by The Weeknd and Stevie Nicks — which it bought from Kobalt Capital in October 2021 for $1.1 billion. Back then, thanks to historically low-interest rates, valuations on music royalties-based assets stood at multi-year highs.
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