In 2026, mergers and acquisitions, along with investments in music catalogs, have received a boost from the expiration of several private equity, endowments and insurance firms’ investment timelines — as well as geopolitical threats driving institutional investors to stable, non-cyclical assets. But there’s another factor fueling deals, too: The billions music companies have raised in recent years from debt investors through asset-backed securitizations (ABS) are burning a hole in their pockets. Indeed, rating agency KBRA says it has rated more than 80 music asset-backed securities with a cumulative value of nearly $13 billion since 2020.
Companies that raised capital through securitizations may feel pressure to deploy capital to meet investors’ expectations, and because they begin paying interest on ABS money as soon as they raise it, says Michelman Robinson partner Michael Poster.
“There is a ton of cash in the industry, and companies are under a lot of pressure to deploy because of both investor demand and the ticking cost of funds borrowed through ABS facilities,” Poster, chair of Michelman Robinson’s music acquisitions practice, tells Billboard. “So much demand on the buy side coupled with so much available cash is likely to contribute to more aggressive pricing.”
The need to spend is contributing to joint ventures and partnerships, like BMG’s recent deals with Pophouse Entertainment. In March, BMG sold Pophouse a majority stake of its holdings in Tina Turner’s music and name, image and likeness rights to develop immersive live experiences related to Turner’s legendary stage shows. BMG, which spun off its film business in recent years, retained a significant minority stake in Turner’s rights, which stand to benefit from any new content. In July, Pophouse alos acquired a stake in Iron Maiden’s catalog rights from its members, making the company a 50-50 partner with the band as well as BMG, Iron Maiden’s U.S. label and worldwide publisher. — Elizabeth Dilts Marshall
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