Earlier this week, Music Business Worldwide broke the news that Concord had splashed USD $217.3 million on a mystery catalog from a Latin Music artist and songwriter.
It’s no longer a mystery. The artist in question is Daddy Yankee, the Puerto Rican superstar whose La Última Vuelta World Tour generated an estimated USD $198 million in 2022.
Concord has acquired parts of the music publishing and recorded music catalog of the reggaetón star, including rights to his own hits including Rompe, Gasolina, and Con Calma, plus his featured artist role on Despacito.
In addition, the acquisition covers some name, image, and likeness (NIL) rights.
As MBW told you earlier this week, a recent report published by Kroll Bond Rating Agency revealed that Concord had acquired a catalog from “a highly successful Latin Music artist and songwriter” for USD $217.3 million.
That Kroll report was linked to an Asset Backed Securities (ABS) transaction which saw Concord raise $850 million in new debt financing secured against its catalog of rights.
Interestingly, that ABS valued Concord’s rights portfolio at USD $5.1 billion – a significant rise on the $4.2 billion valuation that Kroll slapped on Concord’s assets in December 2023.
Part of that rise can be explained by acquisitions made by Concord, led by CEO Bob Valentine, over the past year.
The new Kroll valuation of Concord’s portfolio takes into account Concord’s acquisition of the Round Hill Music Royalty Fund Limited assets in 2023 and Mojo Music and Media (also in 2023) – two deals which Kroll’s report suggests were valued at a combined $606.3 million.
Kroll’s new valuation also takes into account the acquisition of the Daddy Yankee catalog.
Concord manages more than one million compositions, master recordings, and related assets across writers/artists including stars such as R.E.M, Creed, Genesis, Phil Collins, Mike + The Mechanics, and Carrie Underwood.
Last year, Concord bulked up its frontline recorded music credentials with the announcement of a JV label, PULSE Records, with the widely respected Pulse Music Group team.
Concord became a majority owner in Pulse Music Publishing via a $100m+ deal in 2020. PULSE has seen success in the US and globally this year with the Tommy Richman hit Million Dollar Baby (PULSE Records/ ISO Supremacy).
Concord, which continues to be majority-owned by its long-term backer, State of Michigan Retirement Systems, entered into a process of exploring a sale itself (engaging Goldman Sachs as its wing-person) a couple of years ago.
That process led to a ~$5 billion takeover offer from an unnamed suitor, but this price-tag wasn’t deemed large enough for the company, which was looking for “extraordinary” offers only.Music Business Worldwide