Media group Warner Bros Discovery may be going back to the drawing board in its attempt to sell its music catalogue.
The Hollywood conglomerate had been hoping to raise as much as $2bn by selling its catalogue of film soundtracks, but according to the Financial Times bids came in closer to $1.2bn-$1.3bn.
“Warner is now reconsidering and may sell only a piece of the catalogue or abandon the deal entirely,” claimed its report.
The news may stoke ongoing fears of a deflation in the prices investors are willing to pay for music rights.
However, with this being a film soundtracks catalogue, there were some extra considerations – the FT said Warner wanted “control over how certain soundtracks are used” for example – which may have also been a factor.
While it certainly feels like the peak for valuations of music rights was a couple of years ago, offers of up to $1.3bn for Warner Bros Discovery’s catalogue – even if that wasn’t as much as the company hoped for – shows there are still buyers out there with money to spend.
Music Ally’s next Learn Live webinar will help you understand what’s required for artists to thrive in new international markets!