Kanye West is reportedly testing the market for potential catalog sales.
According to reports, Kanye West has been looking for a potential buyer for his song catalog on the side.
According to Billboard, his team has been shopping his publishing catalog for the last 10 months or so in order to test the market. His catalog is estimated to generate $5 million in revenue per year. However, there is no word on how much Kanye intends to charge for it.
His songs generate close to $13.25 million in total revenue. Many of the songs in his subsequent catalog, including those sampled on his records, have between 10 and 24 songwriters. Ye owns 35% of his first four albums, but only about 20% of his subsequent albums, beginning with My Beautiful Dark Twisted Fantasy. According to the report, he is seeking 35 times the gross profit, implying that the asking price is likely to be closer to $175 million.
According to sources, the buyer would also have the opportunity to sign a future publishing deal with the multi-platinum artist in order to entice buyers to the deal. Achieving a 35x gross profit will undoubtedly be difficult. The publishing catalog of Bob Dylan, for example, is said to have gone to UMG for a 28 to 29 times multiple. Sony Music Publishing is currently in charge of Kanye’s catalog.
When using West’s catalogue, prospective customers face numerous challenges. To begin with, his repertoire has not yet matured, and some of his songs are still chart-topping singles. As a result, the amount of money these hits bring in each year is likely to “decay” over the next few years, and it’s unclear when each will stabilize at what level of activity. As a result, investors find it difficult to forecast their profits. According to Billboard estimates at the time, Justin Timberlake, another artist with a number of songs that are likely still in decay, was able to sell his song catalogue to Hipgnosis Songs Capital for up to 28 times gross profit.
Another issue is that the songwriter splits on some of Kanye’s hit songs remain unresolved. Prospective buyers may be concerned because they don’t know what percentage of these songs will be settled once these disputes are resolved.
Finally, potential suitors say West’s unpredictable personality adds another layer of risk to an already expensive deal.