GoDigital Media Group Acquires Leading Music Industry Finance Firm Sound Royalties in Eight FIgure Deal
GoDigital Media Group ("GDMG") and MEP Capital ("MEP") have acquired Sound Royalties, the leading provider of innovative financing solutions for music creators ranging from emerging artists, songwriters and producers, to platinum hitmakers such as DJ Khaled, Lil Wayne, Pitbull, Rich Robinson, and Wyclef Jean. The announcement was made by GDMG CEO Jason Peterson, who noted that the high eight-figure purchase, with financing from MEP, was the biggest non-music catalog acquisition in company history. Exact terms of the deal were not disclosed.
LOS ANGELES, Sept. 16, 2021 /PRNewswire-PRWeb/ -- GoDigital Media Group ("GDMG") and MEP Capital ("MEP") have acquired Sound Royalties, the leading provider of innovative financing solutions for music creators ranging from emerging artists, songwriters and producers, to platinum hitmakers such as DJ Khaled, Lil Wayne, Pitbull, Rich Robinson, and Wyclef Jean. The announcement was made by GDMG CEO Jason Peterson, who noted that the high eight-figure purchase, with financing from MEP, was the biggest non-music catalog acquisition in company history. Exact terms of the deal were not disclosed.
"Our mission at GoDigital is to inspire happiness through sharing creativity," says Peterson. "Sound Royalties is a logical investment for GDMG and MEP, considering how the company and the team are perfectly aligned with our thesis that music rights are the best alternative investment in the creative industries right now," says Peterson. "Artists, songwriters, and producers are all businesses and, like businesses in any other industry, need to be able to access capital to grow. Sound Royalties provides a much-needed solution to the music industry for creators and rights holders who are looking for financing but who do not want to sell their rights perpetually. The service allows creators to concentrate on what they do best: make music. We are also pleased to say that the current leadership team will stay on and representatives from GDMG and MEP will be joining the Board."
Alex Heiche, Sound Royalties CEO said "Sound Royalties was founded on the principle of protecting creators' rights and providing individualized customer centric solutions. We're excited to be joining the GoDigital family, which will enable us to expand our technology platform and grow more rapidly, while preserving the ability for creatives to speak and work directly with our experienced Royalty Specialists to ensure they receive the best financing that suits their specific needs."
Sound Royalties, LLC was founded in 2014 by Alex Heiche and backed by York Capital to provide royalty-based financing services for music creators. The company is the only provider of funding against royalties from all major collection societies, labels, publishers, and distributors. Sound Royalties is able to service transactions from $5,000 to tens of millions of dollars. The company finances future music royalties for a finite duration in exchange for providing the creator a lump sum of cash upfront. Creators get to keep their copyrights and ongoing royalty cash flow above the amount financed by Sound Royalties.
GoDigital Media Group has three divisions engaged in intellectual property rights management: music, networks, and commerce. It has been in expansion mode, last year adding the Beluga Heights label and its Jason Derulo catalog to GDMG's Music division and mitu and YogaWorks to its stable of special interest networks alongside Latido Music.
Stephens, Inc and Kramer Levin, Naftalis and Frankel, LLP represented the sellers.
Stubbs, Alderton, and Markiles, LLP represented GDMG.
About GDMG:
GoDigital Media Group is a privately held company founded in 2006 by Jason Peterson to address the convergence of media and technology transformation. GoDigital generates value through the synergy of three practice areas: music, video, and brand intellectual property rights management. Business units in music include Cinq Music, AdShare, VidaPrimo and Sound Royalties; special interest video networks include: Latido Music, mitú and YogaWorks. The brand rights management division operates the mitu shop, an eCommerce retailer as well as produces and distributes artist merchandise and YogaWorks apparel. http://www.godigitalmg.com
About MEP Capital:
MEP Capital is an investment firm focused on opportunities in the media and entertainment industries, providing support to the creative community. Across music, film & television, book publishing, and digital media, MEP finances projects and acquires assets in partnership with leading industry operators. We invest through long-term funds with commitments from limited partners, including institutions, family offices, and high-net-worth individuals. Learn more at http://www.mepcap.com
About Sound Royalties:
Sound Royalties, LLC is a specialty finance firm that helps music industry professionals fund personal and professional projects without ever taking ownership of their copyrights, allowing for pass-through income, and empowering creatives to choose from a variety of flexible pricing options. The company's core business is offering royalty advances of anywhere from $5,000 to the tens of millions. It does this by advancing artist, producer and songwriter royalties paid through music labels, distributors, publishers and PROs such as BMI, ASCAP, SESAC, SoundExchange and many more. Sound Royalties works with a wide range of music industry professionals, from emerging artists and rising stars to GRAMMY Award winners, platinum recording artists and notable music industry executives, as well as music distributors, publishers and record labels in every genre. Learn more at http://www.soundroyalties.com
Media Contact
Steven Fisher, GoDigital Media Group, 8186881502, [email protected]
SOURCE GoDigital Media Group
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