Kanye West Is Reportedly Seeking Buyers for His Song Catalogue
Kanye West has reportedly been quietly shopping his publishing catalogue over the past year.
As per Billboard, sources claim that representatives for the hip-hop star have been meeting with prospective buyers over the past 10 months to discuss a possible valuation for his catalogue of music.
While no official price has been set, it’s reported that Kanye is seeking a huge valuation rising to as much as 35-times net publisher’s share, or gross profit.
In a bid to entice potential buyers, sources claim that the buyer would also be given the chance to sign a go-forward publishing deal with the rapper.
According to Billboard, Kanye’s catalogue generates upwards of $13.25 million in publishing royalties each year. However, there’s a caveat: as some of his songs, particularly from later albums, often have over 10 credited songwriters, it’s difficult to settle on an exact valuation for his share of the publishing payout.
Billboard estimates that Kanye has a 35% share of the songwriting on his first four albums, while this figure drops to just 20% on his later albums. Sources claim his share amounts to $5 million annually.
While most renowned songwriters often attempt to agree on a 30-times multiple these days, it’s very rarely reached. Bob Dylan’s publishing catalogue is reported to have gone to UMG for a 28 to 29-times multiple. At $5 million in reported annual income, Kanye asking for a 35-times multiple would mean a $175 million valuation.
Kanye could encounter other issues, including the fact that the songwriter splits on some of his biggest songs are still being disputed. That could put potential buyers off, since it’s unclear just how much share of these songs Kanye will end up with after the disputes are resolved.
According to Billboard‘s sources, Kanye’s representatives have slowed their efforts to shop his catalogue in recent months. Some believe that means Kanye’s camp may have already found a bidder willing to meet his high pricing expectations and a deal is being quietly put together.
Alternatively, it could mean that the attempts to shop his catalogue have failed to meet the high pricing expectations and his catalogue is no longer up for sale.
This is a developing story. More to come.