Owning the most successful record label in country music right now doesn't sound like a bad gig. And for only $200 million….it could be yours.
According to the New York Post, the label which is home to Rascal Flatts, Taylor Swift and Tim McGraw, is on the block.
Owner Scott Borchetta, who started the label in 2005, is looking for a price in excess of $200 million, sources said.
Mr. Borchetta has been hustling and a driving force on the label since 2005. And they just recently signed a joint venture between Reba McEntire and Cumulus. The NY Post says the sale process is being clouded by a number of factors, including the fact that Swift is nearing the end of her contract with the label. The global superstar only has 1 more album on her contract for the label. And as many know, Swift’s family owns a piece of the label. Without Taylor, the label’s value is likely worth a lot less.
ESPECIALLY considering Taylor's latest album “1989,” forecast to hit 1.2 million units.
The NY Post also said that to keep her, Big Machine may have to pony up an advance of between $10 million and $20 million, some music executives said.Only with Swift back under a long-term contract will Borchetta get his high sale price, the executives said.
Big Machine is also nearing the end of its distribution partnership with Universal Music Group.Lucian Grainge’s UMG, naturally, could be a likely buyer of Big Machine, sources said.
The two companies also have a joint venture label called Republic Nashville and jointly began a sister label called “Dot Records” earlier this year.
Oh boy! Well…that's life in the business world I suppose! But it will be exciting to see what happens with this larger than life label and what direction it takes!
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