Regardless, the record label operations probably generate the vast amount of the company’s revenue and probably most of the EBITDA. All of the Borchetta labels are included in the pending acquisition: Big Machine Records, the Valory Music Co., BMLG Records and Big Machine/John Varvatos Records. So while Billboard estimates Big Machine’s global revenue for its record label operations in 2018 at about $105 million, that doesn’t include revenue from the Big Machine Music publishing company, which has a songwriter roster that includes Luke Combs, Jonathan Singleton, Brandy Clark and Laura Veltz. Selling Swift: What's Next for Big Machine's Taylor-Made Catalog and Possible Greatest Hits?īefore Billboard tries to estimate a valuation for Big Machine’s entire operation, let’s look first at the two company’s financials available to us and then the assets involved for both Big Machine and Ithaca.įirst off, Big Machine’s $40 million in EBITDA on more than $100 million in revenue represent the entire Big Machine operation, the label and the publishing. All of that financial data was first reported by the Wall Street Journal and subsequently confirmed to Billboard by sources. And that when the Big Machine deal closes, Ithaca Holdings will have an $800 million valuation. The other financials publicly available is that the entire Big Machine operation produced $40 million in EBITDA on more than $100 million in revenue. All things considered, Billboard estimates the range somewhere between the upwards of $300 million amount and $460 million.ĭeal valuations depend on any number of financial barometers, including EBITDA (earnings before interest, taxes depreciation and amortization) and due diligence on artist and songwriter contracts.īut scant financial details have been made available beyond what insiders have told the press, with the most common disseminated one being the too vague-to-ascertain actual pricing level. But a deal always depends on what amount suitors are willing to pay, not what industry experts think it should be. While the Big Machine companies may well indeed be valued at the aforementioned price tag, industry insiders speculate it’s higher and Billboard‘s math shows it might range as high as $600 million. With Scooter Braun‘s Ithaca Holdings apparently agreeing to pay upwards of $300 million for Scott Borchetta‘s entire Big Machine operation, industry deal makers are wondering if that price tag is a final valuation for the Nashville-based company.
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