The iconic British rock band Queen is on the verge of shattering records with a staggering $1.2 billion sale of their entire music catalog. This comes as a surprise amidst a slump in song valuations following a string of megadeals during the pandemic. The band’s surviving members and the Freddie Mercury estate are in advanced negotiations, potentially doubling the current record held by Bruce Springsteen, who sold his music rights for $550 million in 2021.
Queen’s music consists of the “master” copyright, encompassing the rights to recordings, and the “publishing” copyright, covering written music and lyrics. While Disney Music Group owns the North American rights, the band retains global rights through Queen Productions Ltd., which earned £39 million ($48 million) in royalties in 2021.
Industry experts view music catalogs as investments akin to owning shares in dividend-paying companies. The $1.2 billion valuation for Queen’s catalog is based on expected annual returns over the next several decades. Guy Blake, a prominent music industry attorney, describes the potential deal as “seismic” and unique, reflecting the enduring popularity of Queen’s music across generations.
Queen, one of the greatest rock bands of all time, is on the brink of a record-breaking deal. Their entire music catalog, including classics like “We Will Rock You” and “Bohemian Rhapsody,” is nearing a $1.2 billion sale. This comes as a surprise given the recent slump in song valuations.
The surviving band members and the Freddie Mercury estate are in advanced talks, potentially doubling the current record set by Bruce Springsteen’s $550 million deal in 2021. Springsteen’s sale occurred during a series of blockbuster deals, including those of Bob Dylan, Neil Young, and Justin Bieber, who also fetched hundreds of millions for their collections.
Queen’s potential deal defies the recent market cooldown, showcasing the enduring value of legendary artists’ catalogs. The band’s music consists of the “master” copyright, covering recording rights, and the “publishing” copyright, encompassing written music and lyrics.
While Disney Music Group owns the North American rights to Queen’s music, the band retains global rights through Queen Productions Ltd., which earned impressive royalties of £39 million ($48 million) in 2021. This showcases the band’s enduring popularity and the potential for significant returns on the catalog investment.
Investors view music catalogs as assets that generate reliable income, similar to owning shares in dividend-paying companies. The $1.2 billion valuation for Queen’s catalog reflects the expected annual returns over the coming decades. Guy Blake, a leading music industry attorney, describes the potential deal as “seismic” and a “one-of-one” sale, highlighting the uniqueness of Queen’s catalog and their enduring popularity.
Blake further adds that Queen is striking the deal at the height of the market, as it has started to show signs of a slight decline. Universal Music Group was initially rumored to be the frontrunner in the negotiations, but sources now suggest an “exclusive period with an undisclosed suitor.” The buyer will likely acquire the masters, publishing copyright, and ancillary income streams, including revenue from merchandise and the 2018 movie “Bohemian Rhapsody.”
The Queen deal surpasses previous records, including that of Bruce Springsteen, whose catalog sale amid the pandemic reached $550 million.
The popularity of Queen’s music has endured, and they have gained a legion of younger fans following the release of the biographical movie “Bohemian Rhapsody.” This has resulted in massive streaming figures and a unique appeal to a younger audience, further boosting the value of their catalog.
Blake emphasizes the rarity of legacy catalogs like Queen’s that continue to resonate with younger generations. Following Springsteen’s record-setting sale, Bob Dylan is estimated to have earned the second-highest amount for a music catalog, receiving approximately $450 million across two separate deals. Dylan sold his songwriting rights to Universal Music and his recording rights to Sony Music Entertainment.
Other notable sales during the pandemic include Justin Bieber’s catalog, which sold for $200 million, and Neil Young’s catalog, valued at around $300 million. Despite a recent cooling in the market, legendary bands like Queen continue to attract enormous payouts for their iconic catalogs, showcasing the enduring value of their musical legacy.
Justin Bieber’s catalog, including hits like ‘Baby,’ was sold for a staggering $200 million in January 2023.
In conclusion, Queen’s potential $1.2 billion catalog sale is a testament to their enduring legacy and the continued appeal of their music across generations. Despite a recent cooldown in the market, their deal showcases that legendary artists can still command eye-watering sums for their iconic catalogs. As Blake sums it up, “If you tell any private equity company ‘hey, we think we have a chance to buy Queen,’ they’ll find the money.”