Private equity firm Crossroads Media and L.A.-based Bug Music Inc. have acquired Windswept Holdings, one of the largest independent music publishers in North America.
Japan-based Fujipacific Music Inc. and Fuji Television Network each held a 50 percent stake in U.S.-based Windswept. The publisher was formed in 1999 after the sale of the Windswept Pacific catalog to EMI Music Publishing, and holds rights to more than 150,000 compositions.
The deal catapults Bug, which has hits by Johnny Cash, Kelly Clarkson and rapper 50 Cent in its catalog, into the ranks of the top independent music publishers in the world. Financial details were not disclosed.
“They have a great reputation as a good administrator of their catalogs,” said attorney John Frankenheimer, co-chairman at Loeb & Loeb LLP who represented Windswept in the transaction. “They made their name in that arena, but they were not known for owning a large number of copyrights.
Crossroads, a private equity firm headed by former Viacom Inc. Chief Operating Officer Tom McGrath, and Spectrum Equity Investors acquired a controlling interest in Bug in 2006. John Rudolph, former CFO of Windswept, will be CEO of Bug and acquire an equity stake in the business.
Windswept Holdings has consistently been strong in terms of airplay, and has since launching in 2006 held a spot in Billboard magazine’s Top 10 Publisher Airplay Chart, which measures U.S. market share each quarter based on radio airplay.
Windswept began to explore the possibility of a catalog sale about a year ago, when FujiPacific wanted to re-evaluate its strategic business options.
It was a prescient move; there were a whopping 49 parties that expressed interest in the catalog before it was sold to Bug.
Big on Short
Local Web ad firm SpotRunner Inc and United Talent Agency Inc. last week launched a digital entertainment studio venture called 60Frames Entertainment.
The mini-studio is aimed at giving “professional content creators access to financing, speed to market, greater ownership over their intellectual property and participation in all revenue streams including advertising,” according to a release announcing the launch. In simple terms, 60Frames is looking to create short videos that cost less than average to produce and will allow the creators to keep a major ownership stake.
Spot Runner made its name by providing thousands of archived video templates that can be used by small businesses to produce cable TV commercials at affordable rates. The company began expanding the scope of its business last fall, in order to provide comparable services for businesses and consumers on formats including online video, video on demand and Internet protocol TV.
UTA represents Hollywood heavyweights Vince Vaughn, Judd Apatow, the Olsen twins and Harrison Ford.
The new company raised $3.5 million in funding from investors including Tudor Investment Corp. and the Pilot Group. Brent Weinstein, who had been UTA’s head of digital media, comes on board as chief executive.
‘Tunnels’ Time
Relativity Media LLC’s Ryan Kavanaugh has acquired the feature film rights to finance, and produce “Tunnels,” the first work of British authors Roderick Gordon and Brian Williams.
The nascent book series is in the vein of the wildly popular “Harry Potter” tomes, the film adaptations of which have brought in more than $3.5 billion in worldwide box office receipts. Kavanaugh and Mark Canton (“300”) will produce and Danny Davids and Neil Canton will executive produce.
Barry Cunningham, who signed “Harry Potter” creator J.K. Rowling, signed the duo after he tracked down an early, self-published version of their book. The first installment has amassed advances of more than $1 million and pre-publication rights in over 21 languages; the authors have completed a sequel to the series and are working on a third volume. The project will publish in the U.K. this summer and stateside in January 2008 through Chicken House/Scholastic.
Beverly Hills-based Relativity has structured and completed more than $4.2 billion in production slate financing since 2004. Among the films it has produced are “Smokin’ Aces,” “Talladega Nights: The Ballad of Ricky Bobby” and “Inside Man.”
Early this year, Relativity inked a deal with Citigroup Corporate and Investment Banking on a co-financing package for about 45 studio films over the next five years.
AEG Looks South
L.A.-based AEG Live, one of the world’s largest producers of live entertainment, has opened a regional office in San Diego. Vice President Steve Redfearn and Vice President of Booking John Wojas will head operations.
AEG Live’s San Diego office has kicked off the summer season by promoting several acts at the city’s Bayside Concerts venue, including shows by Hilary Duff, Diana Krall, the White Stripes and Smashing Pumpkins.
AEG Live San Diego will be the exclusive bookers of the San Diego Sports Arena, which is scheduled to host the “American Idol” tour show in July and Hannah Montana in November. Also, the office will oversee concerts at the Del Mar Thoroughbred Club’s Four O’Clock Friday series, as well as the 25th year of the long-running Humphrey’s Concerts By the Bay season.
Staff reporter Anne Riley-Katz can be reached at
[email protected]
or at (323) 549-5225, ext. 225.
