As investors rush to buy the music catalogs of megastars like Bob Dylan, Bruce Springsteen and Tina Turner, Barry Massarsky and his firm are in the middle valuing most of the deals
As investors rush to buy megastars’ music catalogs, Barry Massarsky and his firm are in the middle valuing most of the deals.
He pioneered the economics of royalty cash flows in the early 1990s and together with his business partner, Nari Matsuura, developed a model to guide banks lending to music investors. Last year Massarsky Consulting valued over 300 catalogs totaling more than $6.5 billion. “Our website is deluged with more and more demands from newer buyers, from newer sellers,” he says.Amir Hamja for The Wall Street Journalto music publishers, publicly traded funds and private-equity firms.
Facing the recent high volume of deals, Mr. Massarsky sold his business this month to professional-services firm Citrin Cooperman for an undisclosed amount.A personal, guided tour to the best scoops and stories every day in The Wall Street Journal.The growth of streaming and other online activity means song use is on the rise, generating payments to the songwriter and other stakeholders.
Investors’ deals for music are also more complex. Some are buying the right to collect a certain payment stream while not owning any piece of the underlying copyright. They are also selecting specific copyrights or royalty streams for investments.Barry Massarsky and business partner of 21 years, Nari Matsuura.Mr. Massarsky, 66 years old, and Ms. Matsuura, 51, spoke with The Wall Street Journal about what goes into valuing an artist’s lifework and what is on the horizon for music investments.
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