NEW YORK (CelebrityAccess MediaWire) — Investment banking giant JPMorgan Chase is facilitating an auction for Indie music publisher Bug Music with an asking price of $300 million.
As reported by the New York Post, Bug has already received the first round of bids from numerous interested parties. Among this list are several of the majors, including Warner Music Group, Universal Music Group, Sony/ATV Music and a partnership between KKR and BMG. The next round of bids is due on June 18.
With a going price of $300 million, Bug is a seeking a higher multiple of their price to earnings ratio than other music companies in similar sales. According to the Post, the $300 million sale price would put Bug at 12 times the net publisher's share. Bug's annual revenue is estimated to be $70 million.
"Typical music publisher multiples currently range from 8 to 10 times net publisher's share for quality assets. Historically they've trended more toward the 10 to 15 times range." Lisbeth Barron, a Berenson & Company banker with expertise in the music industry told the Post.
Privately owned, Bug is one of the largest indie publishers in the world, holding copyrights to more than 250,000 songs, inclduing "What a Wonderful World," and "The Real Slim Shady." as well as current chart toppers by acts such as The Kings of Leon's "Use Somebody" and Brad Paisley's "American Saturday Night."
Bug Music's CEO John Rudolph just sat down for an interview with CelebrityAccess's Larry LeBlanc last week. That interview can be seen here. – CelebrityAccess Staff Writers