mauvais 0 Posted July 4, 2019 Share Posted July 4, 2019 🕊️ Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted July 4, 2019 Share Posted July 4, 2019 10 hours ago, Lighter said: If he’s worried that if Taylor bought her masters ONLY. He wouldn’t be able to sell the label worth $300M. so why not just let Taylor pay for that amount instead of others. why didn’t he consult her. same thing. Taylor will own her(everyone’s) masters. And he’d still be CEO I’m confused I am too..I don't think all the facts are present or some of the info is false. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
mmmmonster 137 Posted July 4, 2019 Share Posted July 4, 2019 I don't think Scott Borchetta would've purposefully prevented the sale from Taylor had the price been right. From a business perspective, he just wants his money, so he wouldn't sell the masters to her because they make up most of BM's value and BM would be reduced to almost a shell once those are gone. I don't know if Taylor would've been willing to pay $300M for the label if all she wants are the masters (assuming the masters aren't for sale because SB wants to keep them together). If he had been willing to sell just the masters, the price would be higher than 80% of the $300M (or whatever reports are saying her masters are worth) because the carve-out of the masters as assets would also impact the company's goodwill. In other words, once the masters are no longer BM's assets, BM's value might take a hit that's greater than the market value of those masters. Had Taylor's team put up a good enough offer for either the label or masters (she said she had tried to buy them back many times), I doubt SB would've turned her down. When she walked away from the deal in 2018, her business people have clearly weighed out the costs v. benefits and ultimately decided to leave. From her perspective though, it makes sense - why pay hundreds of millions when she can just rerecord her masters? The buyback would cost more than 70% of her reported net worth of $360M and it would take a long time to make that money back. All in all, the situation sucks and I strongly believe that the prevalent contracting practices need to be reformed, but a business deal is a business deal. I personally detest Scooter Braun (having witnessed his arrogance in person by chance) but if he put in a high enough bid, he won fair and square. I don't think either party did this deal out of spite because $300M is a lot of money. (I work in corporate M&A and have seen dozens of these deals, so this is just my objective take.) Link to post Share on other sites More sharing options...
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