Scott Borchetta and Scooter Braun (photo: Ithaca Holdings LLC)
Scooter Braun‘s Ithaca Holdings has agreed to acquire Big Machine Label Group (BMLG), in a major music industry shakeup. Sources tell Billboard the deal is valued at over $300 million. The acquisition includes all aspects of Big Machine, including its client roster, distribution deals, publishing sides and owned artist masters. Most notably, that list includes the back catalog of Taylor Swift, who left BMLG and signed a new deal with Universal Music Group last year.
Big Machine founder Scott Borchetta will join the Ithaca board, acquiring a minority interest in Ithaca and remain as President/CEO of BMLG. Big Machine will continue its normal operations out of Nashville.
“The idea of Scott and I working together is nothing new, we’ve been talking about it since the beginning of our friendship,” said Braun. “I reached out to him when I saw an opportunity and, after many conversations, realized our visions were aligned. He’s built a brilliant company full of iconic songs and artists. Who wouldn’t want to be a part of that? By joining together, we will create more opportunities for artists than ever before, by giving them the support and tools to go after whatever dreams they wish to pursue.”
“Scooter and I have been aligned with ‘big vision brings big results’ from the very first time we met in 2010,” said Borchetta. “Since then I have watched him build an incredible and diverse company that is a perfect complement to the Big Machine Label Group. Our artist-first spirit and combined roster of talent, executives, and assets is now a global force to be reckoned with. This is a very special day and the beginning of what is sure to be a fantastic partnership and historic run.”
The deal is being financed by the Carlyle Group’s Carlyle Partners VI Fund, alongside Braun and Ithaca Holdings. Carlyle will remain a minority shareholder in Ithaca.
