Initially, in 1997, Moody’s assigned an investment-grade rating to Bowie bonds. Moody’s reduced the Bowie bonds from an A3 to a Baa3 rating in 2004, a move that Investopedia describes as “one rung above junk status.” Investors in Bowie’s company would have been in a panic.
What is the value of Bowie bonds?
Bowie Bonds are asset-backed securities secured by current and future profits from David Bowie’s 25 albums (287 songs) recorded prior to 1990. David Pullman, a rock and roll investment banker, created Bowie Bonds in 1997. The Prudential Insurance Company of America purchased the bonds for US$55 million, or roughly $88.7 million in today’s dollars, when they were issued in 1997. The bonds paid 7.9% interest and had a ten-year average life, giving them a greater rate of return than a 10-year Treasury note (at the time, 6.37 percent ). The cash flow that backed the bonds’ interest payments was generated by royalties from the 25 albums. Prudential also got assurances from David Bowie’s label, EMI Records, which had just inked a $30 million deal with him. Bowie was able to get a sum of US$55 million up front by foregoing ten years’ worth of royalties. This money was spent by Bowie to purchase songs owned by his previous manager. At the time of the arrangement, Bowie’s aggregate catalog of albums covered by this deal sold more than 1 million copies each year. Shortly after its launch, however, the development of MP3 sharing led to an increase in music piracy and a reduction in music sales, which was one of the causes that led Moody’s Investors Service to downgrade the bonds from an A3 rating (the highest) to a Baa3 rating, one notch over junk status. Lower-than-expected revenue “due to difficulties in recorded music sales” led the reduction, which was guaranteed by an undisclosed entity. Despite this, the Bowie bonds were liquidated in 2007 as scheduled, without default, and Bowie regained ownership of the song royalties.
Are Bowie bonds profitable?
David Bowie bonds were originally issued in 1997, when he teamed up with Prudential Insurance Company to fund $55 million by offering investors income from his 25-album back library. The 25 albums utilized as the underlying assets for David Bowie bonds were all produced before 1990 and included classics like The Man Who Sold The World, Ziggy Stardust, and Heroes. The proceeds from the bond sale were utilized by David Bowie to buy old recordings of his songs from his previous manager. His royalties from wholesale sales in the United States were securitized and turned into bonds. In fact, by issuing the bonds, he gave up royalties for the duration of the bond.
Who owns David Bowie’s Masters album?
Since 2013, Warner Music Group has handled majority of David Bowie’s recorded repertoire, with his tracks from 2000 to 2016 being added last year. The news comes only days before Bowie’s 75th birthday on January 8th, as well as the sixth anniversary of his death in January 2016.
Who owns the David Bowie music?
Warner Music Group, through its Warner Chappell Music subsidiary, has bought the global music publishing rights to David Bowie’s song collection, making it the first major music industry acquisition of 2022.
According to Variety, the price of the sale, which had been rumored to be approximately $200 million, was subsequently negotiated at upwards of $250 million.
Following the $400 million acquisition of Kevin Liles’ 300 Entertainment “>300 Entertainment in December, Warner has announced two acquisitions totaling over $650 million in acquisition costs in the last three weeks…
Who owns the David Bowie catalog?
Warner Music Group (WMG) announced on Monday that Warner Chappell has purchased the global music publishing rights to David Bowie’s full catalog, which includes 26 studio albums and classics like “Space Oddity,” “Life on Mars?” and “Modern Love.”
Is there a Bond song by David Bowie?
He also disclosed that he turned down the request to sing an opening theme, saying, “I was asked to do both, but to be honest, I haven’t watched a James Bond picture since Sean Connery was in them.”
When did David Bowie’s music library go on the market?
(AP) NEW YORK (AP) Warner Chappell Music has purchased David Bowie’s huge music collection, which spans the late 1960s to right before his death in 2016.
More than 400 songs are included, including “Space Oddity,” “Ziggy Stardust,” “Fame,” “Rebel Rebel,” and “Let’s Dance,” from 26 Bowie studio albums released during his lifetime, a posthumous studio album, Toy, two Tin Machine studio albums, as well as tracks released as singles from soundtracks and other projects.
The sale’s financial specifics were not disclosed. Warner Chapell is Warner Music Group’s music publishing division. Last month, Bruce Springsteen’s collection was reportedly sold to Sony Music for $500 million. Bob Dylan, Neil Young, and Stevie Nicks are among the artists whose catalogs have been sold in part or in whole in recent years.
David Bowie, born David Jones in 1947 in London, died in January 2016 after an 18-month battle with cancer. Bowie had an unpredictably wide range of styles as a performer, fusing European jadedness with American rhythms, as well as his ever-changing personalities and outfits. The gaunt and erudite Bowie introduced an open theatricality and androgyny to popular music that revolutionized the concept of a rock star. In 1996, he was inducted into the Rock and Roll Hall of Fame.
Last year, Warner Music Group struck an agreement with David Bowie’s estate to license worldwide rights to Bowie’s recorded music collection dating back to 1968.
Is David Bowie’s music his own?
Purists will be thrilled to learn that David Bowie composed much of his own music. However, Bowie did record a covers album called Pin-Ups, which had a large number of songs that he did not originate. “Your albums frequently reflect the place where they were written and recorded,” he observed.