BMG Invested Roughly $40M to Build its Video Game Division
“So we put aside a small amount of capital for BMG because in those days, BMG's revenue was five billion a year, and it was very profitable. And I think we devoted around forty million dollars to investing in this basket of games and building up the distributio…”
Take-Two Acquired BMG Interactive for 20% Equity Worth $20M
“It's a little tiny public company with a, I want to say roughly a hundred million dollar market cap, and they agree to give us 20% of their company in stock for the business, such as it was. So, twenty million dollars.”
BMG Sold Its Take-Two Stake for $14M Right Before GTA Released
“So we sell the stock in the open market for, wait for it, fourteen million dollars. So a month later, this public company launches the first property that we had completed into the market.”
Simon Cowell prioritizes commercial entertainment over critical prestige in music.
“It's the music business. I'm just trying to make money. You know, it doesn't really matter. Does it? If someone's enjoying it, let them enjoy it. Who cares?”
Simon Cowell offered to blindly double the Spice Girls' record deal.
“I get in my car, floor it back to my office, call the manager and said, look, I'll literally double whatever deal you've been offered if you haven't already signed. And he said, too late to sign.”
Freise: KKR made only one investment in 2009 (BMG)
“The only investment in 2009 we made was BMG.”
Freise: KKR's European deal scale grew from $1.5B for BMG to $10B for Axel Springer
“When I did the BMG deal, that was a one and a half billion deal for a 50% stake In that music company, you fast forward 10 years, and we had a ten billion deal to buy half of Axel Springer, which again was a fifty-fifty deal with the family.”
Mestel: Primary Wave holds thousands of copyrights, not millions like majors
“Unlike the Warner chapels of the world or the universals of the world, the Sony's of the world, the BMG's of the world that have millions and millions of copyrights. We only have thousands of copyrights, but all of our copyrights are exceptional.”