I went on BBC World News to discuss why the legendary artist and songwriter Bob Dylan sold his publishing catalog to Universal Music Publishing Group (UMPG) for an estimated $300 – $400 million.

Here’s why many artists have recently sold their catalogs to investment funds:

1. streaming data – it’s easier to identify the most valuable songs

2. non-correlated asset – royalties are consistent. people listen to music regardless of economic factors

3. low interest rates – it’s cheaper now to borrow money and acquire catalogs

And 4. the pandemic – some artists are struggling now since they can’t tour. Selling their publishing catalogs helps.

I didn’t mention #4 in the interview cause it’s less relevant for Bob Dylan. He’s rich. But it may be more relevant for others struggling right now.

If you love these breakdowns, you’ll love Trapital, which covers deals like this in the business of hip-hop.

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