NEW YORK (Hypebot) — SESAC, the for-profit alternative to non-profit performing rights collection organizations ASCAP & BMI, is for sale. A number of marquee artists including Bob Dylan and Lady Antebellum use the company to negotiate licenses with radio stations, TV networks, film studios and performance venues.
Goldman Sachs has been hitred by media investment bank Allen & Co. and hedge fund Och-Ziff to try to fetch $500 million for the Nashville-based company, according to the New York Post.
A previous auction which sought $700 million failed, in part because of the limited number of buyers available. Publishers and records labels, for example are unlikely bidders.
“Because of the needs of performing-rights organizations to be deemed independent, it is more challenging to sell… because of the concern of losing the ‘Switzerland’ status,” according Lisbeth Barron, a managing director at investment bank Berenson & Co.