Sony Music acquires Queen’s music catalog for $1.27bn

Sony Music is reportedly purchasing the British band’s catalog.

Queen‘s iconic music catalog might soon find its new home with Sony Music.

According to HITS Daily Double, Sony is reportedly acquiring the legendary band’s catalog for an impressive £1 billion, equivalent to $1.27 billion.

The Deal’s Structure:

Sony Music Publishing is set to oversee the financial, copyright, and contractual aspects of this extensive deal.

Given the individual contributions of each founding member—each having penned at least one chart-topping single—the deal’s structure is notably complex. This acquisition follows Sony’s significant $600 million investment for a 50% stake in Michael Jackson’s catalog earlier this year.

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Competitive Bidding:

Variety reported that another interested party withdrew their bid at $900 million, though the identity of this competitor remains undisclosed. This indicates the high value and competitive nature surrounding Queen’s catalog.

Secondary Revenue Streams:

The acquisition is expected to encompass various secondary revenue streams, including earnings from the 2018 Freddie Mercury biopic, “Bohemian Rhapsody.” Additionally, any future jukebox musical featuring Queen’s catalog would be included in the deal, per Variety.

Master Recordings and Licensing:

Revenue from Queen’s North American master recordings, which Disney has owned since a $10 million deal in 1990, might also be part of the acquisition.

Moreover, Universal Music Group’s current licensing income from Queen will transfer to Sony upon the expiration of their deal in 2027. Notably, revenue from live performances will not be included, as surviving members Brian May and Roger Taylor continue to tour with singer Adam Lambert.

Financial Impact:

Queen, formed in 1970 with members Freddie Mercury, John Deacon, Brian May, and Roger Taylor, has seen substantial earnings from their music.

The Times UK reported that Deacon, May, and Taylor receive eight-figure payouts from Queen Productions Ltd. The holding company earned £73 million in the year “Bohemian Rhapsody” was released. The catalog includes timeless hits such as “Bohemian Rhapsody,” “Another One Bites the Dust,” “Somebody to Love,” “We Will Rock You,” and “We Are the Champions.”

Conclusion:

This landmark acquisition underscores the enduring legacy and immense value of Queen’s music. Sony’s strategic investment reflects the continuing demand and appreciation for the band’s groundbreaking contributions to rock music.