Litmus Music Secures Katy Perry’s Iconic Catalog Rights in a $225 Million Deal
Litmus Music, a catalog rights company backed by the private-equity giant Carlyle Group LP, made a significant announcement on September 18, 2023. The company revealed that it had successfully acquired the rights to Katy Perry’s five studio albums that were released under Capitol Records, a collection that includes the Grammy-nominated “Teenage Dream.”
This high-profile acquisition marks a pivotal moment for Litmus Music and underscores the continued appeal of music catalog rights in the industry. While the financial terms of the deal were not disclosed by Litmus, sources close to the transaction have reported that it amounted to a substantial $225 million, covering Perry’s stake in master recording royalties and music publishing rights for her five albums spanning from 2008 to 2020. These albums are “One of the Boys,” “Teenage Dream,” “PRISM,” “Witness,” and “Smile.”
It’s worth noting that Litmus Music has refrained from commenting on the specifics of the agreement, respecting the confidentiality of the deal.
Katy Perry’s catalog sale follows in the footsteps of other major music rights transactions in 2023, such as Justin Bieber’s $200-million sale to Hipgnosis Songs Capital. This trend highlights that even in an environment of higher interest rates, renowned artists like Perry can still command top dollar for their song rights.
Katy Perry’s journey to superstardom began with her breakout single “I Kissed A Girl” in July 2008. She went on to achieve an impressive nine No. 1 hits on the Billboard Hot 100, with five of them originating from her 2010 album “Teenage Dream.” This accomplishment makes Perry the first woman and only the second artist (after Michael Jackson) to send five songs from a single album to the summit of the Hot 100. These chart-toppers include “California Gurls,” “Firework,” “E.T.,” “Last Friday Night (T.G.I.F.),” and the titular “Teenage Dream.”
Apart from her earlier successes, Katy Perry continued to make waves in the music industry with releases like “Witness” in 2017 and “Smile” in 2020. Concurrently, Perry was also engaging in a blockbuster Las Vegas residency, a venture that she embarked upon in late 2021.
A noteworthy aspect of this deal is the longstanding professional relationship between Katy Perry and Dan McCarroll, Litmus co-founder, and chief creative officer. This association dates back to 2010 when McCarroll served as the president of Capitol Records, the label under which Perry released several of her hit albums.
Commenting on this collaboration, Dan McCarroll expressed his admiration for Katy Perry’s creative vision and multifaceted impact on the entertainment industry. He stated, “Katy Perry is a creative visionary who has made a major impact across music, TV, film, and philanthropy. I’m so honored to be partnering with her again and to help Litmus manage her incredible repertoire.”
Litmus Music, which made its debut in August 2022 with a substantial $500 million investment from Carlyle’s Global Credit Platform, has been proactive in acquiring publishing and recording rights of artists across various musical genres. Notable acquisitions include Keith Urban’s master recordings and a bundle of publishing and performance copyrights from super producer benny blanco.
Hank Forsyth, Litmus co-founder, and chief executive officer, emphasized the significance of Katy Perry’s songs in the global cultural landscape, describing them as “essential” and integral to the fabric of popular culture. He expressed gratitude for the opportunity to collaborate once again with such a trusted partner. Forsyth, a seasoned figure in the music industry with prior experience at Warner Chappell and Blue Note, praised the Litmus team’s ability to partner with the world’s top artists.
Matt Settle, managing director at Carlyle, underscored the cultural influence and commercial success of Katy Perry’s iconic songs. He recognized this acquisition as a testament to Litmus Music’s capacity to partner with the most prominent artists in the industry, positioning the company as a formidable player in the realm of music rights.
News Mania Desk / Agnibeena Ghosh 18th September 2023
