SAO PAULO- New York-based Downtown Music Holdings is selling its entire songs catalog to music rights company Concord Music for about $400 million, two sources close to the matter said on Tuesday.
The talks to acquire the music copyright to 145,000 songs including some performed by the likes of Adele, Aretha Franklin, Beyonce, David Bowie, Bruno Mars, Lady Gaga and Marvin Gaye, began in January, the sources added.
California-based Concord, which is controlled by pension fund Michigan Retirement Systems, and Downtown Music announced the deal on Monday without disclosing the value.
Downtown Music has built the catalog over the past 14 years and will reinvest proceeds in the music services sector, which will become its core business.
CEO and founder Justin Kalifowitz told Reuters that the sale will help Downtown to be viewed as a neutral service provider to the artists, offering distribution, copyright management, marketing and financing for songwriters and artists.
The company has made seven acquisitions of music services businesses over the past two years.
(Reporting by Tatiana Bautzer Editing by David Goodman) ((tatiana.bautzer@tr.com; Tel: +55-11-5644-7756; Mob: +55-119-4210-4173; Reuters Messaging: tatiana.bautzer.thomsonreuters.com@reuters.net))
