- Queen’s surviving bandmates could sell catalog rights outside North America
- They own the catalog through a UK company which earned $48 million in royalties in 2021, while Disney Music Group owns the North America rights
- A $1 billion deal would smash the record for the sale of a music catalog, set when Bruce Springsteen sold the rights to his music for $550 million in 2021
A $1 billion sale of Queen’s music catalog is still on the table despite record executives dismissing talk of a deal, DailyMail.com can reveal.
The sale of rights to the iconic British band’s music – including the hits We Will Rock You, Bohemian Rhapsody and Radio Ga Ga – could net the surviving members and the Freddie Mercury estate hundreds of millions of dollars each.
Reports surfaced on Monday that Universal Music Group was in advanced talks with Disney Music Group, which owns the rights in North America. Disney trashed the story as ‘wild rumors’ and said it has no plans to sell its Queen catalog.
But DailyMail.com can disclose that a deal is still possible for the lucrative global rights, which are jointly owned by bandmates Brian May, Roger Taylor and John Deacon, along with the Mercury estate.
They own the catalog outside North America through the UK-based Queen Productions Ltd, which raked in a staggering £39 million ($48 million) in royalties in 2021.
The guarantee of sky-high annual revenues is viewed by prospective buyers including Universal, the rumored frontrunner, as justification for the massive price tag.
A rep for Queen Productions and the band members did not rule out a sale when approached by DailyMail.com.
A $1 billion deal would smash the record for the sale of a music catalog, set when Bruce Springsteen sold the rights to his music for $550 million in 2021.
That came amid a flurry of other high-profile deals. Bob Dylan’s music was sold to Universal for $300 million in 2020 and Neil Young’s catalog was valued at a similar amount during a deal months later with Hipgnosis Songs Fund.
Newer artists are also cashing in – Justin Bieber sold his entire catalog to Hipgnosis for $200 million in January.
The $1 billion valuation for Queen’s music is based on annual income from the catalog, which chiefly comes from royalties. Investors see prized catalogs in the same way as shares in a company that pay regular dividends.
Hipgnosis, which invests in music catalogs, has indicated that a prime catalog’s value is around 18 times its annual revenue.
Multiplying Queen’s recent royalties takings of $48 million by that figure gives $864 million.
But industry insiders say the music of a band as legendary as Queen could demand a multiple that’s even higher.
Company filings in the UK reveal May, Taylor, Deacon and the Mercury estate each have a 25 percent share in Queen Productions Ltd. The company paid out dividends of £17 million ($21.1 million) in 2021 and £20 million ($25 million) the year before.
If they still command total ownership of its catalog outside North America, that’d mean the lion’s share of the sale would be split four ways.
Disney acquired the rights to the catalog in North America in 1990 for a modest $10 million.
In simple terms, music catalogs are typically split into the ‘master’ copyright, which is the rights to the recordings, and the ‘publishing’ copyright, which is the written music and lyrics.
Entertainment attorney Jason Boyarski, who represented the Prince estate following the death in 2016, told DailyMail.com some catalogs can fetch up to 30 times what they earn annually.
He said a deal of this magnitude would likely involve the sale of royalty rights in both masters and publishing.
‘The question is what the multiple is that a buyer is willing to pay,’ said Boyarki, who has also worked with Katy Perry, Green Day and Lil Wayne.
Boyarski likened a sale to paying a band or artist many years of royalties up front in exchange for control of the catalog and future royalties.
He said a Queen deal would be ‘consistent with what’s happening in the marketplace right now’.
‘Investors, private equity investors, and strategic players are willing to pay massive multiples, even with inflation, and even with interest rates rising, even with the cost of capital going up.
‘We’re still seeing aggressive buyers, especially for a prized possession like Queen.’
Talk of deal comes as Freddie Mercury’s long-time best friend Mary Austin, who inherited half of his estate, auctions a large collection of the star’s personal treasures.
Austin said she is selling the items, which will be auctioned by Sotheby’s in September, ‘to put my affairs in order’. She said in April: ‘I decided that it wouldn’t be appropriate for me to keep things back. If I was going to sell, I had to be brave and sell the lot.’
The comment is a hint she would be willing to also sell any stake she might hold in the Queen catalog.
Mercury died in 1991, four years after he was diagnosed with AIDS. He was gay but had a long-term relationship with life-long friend Austin, whom he described as his ‘common-law wife’ and ‘the only friend I’ve got’.
Guitarist Sir Brian May was knighted by King Charles III in March and still performs, including at the Queen’s Platinum Jubilee Celebrations at Buckingham Palace in June 2022.
Drummer Roger Taylor also continues to perform, including at the Eurovision Song Contest in May.
John Deacon, the band’s bassist, decided to withdraw from the spotlight in 1997, shortly after Mercury’s death and maintains only minimum contact with his bandmates.
May said in 2014 that Deacon ‘still keeps an eye on the finances, though’, adding: ‘We don’t undertake anything financial without talking to him.’
Boyarski thinks the trend of high-profile catalog sales is likely to continue as artists with lucrative collections look to cash in and ‘support their lifestyles’.
‘There will always be deal flow of people selling their catalogs and putting the cash in their pocket to live, especially touring artists that don’t want to tour anymore,’ he said.
A spokesman for the band told DailyMail.com: ‘Neither Queen Productions nor the band members have any comment to offer.’
A Disney Music Group spokeswoman said: ‘Despite the wild rumors and speculation that started with a CNN piece over the weekend, we have had no plans, nor do we have future plans to sell the Queen catalog.’