Following BMI's recent sale to New Mountain Capital and reports of Hellman & Friedman's majority stake acquisition in Global Music Rights (GMR), Blackstone is reportedly entertaining private equity offers for SESAC, with potential sale discussions expected in 2025.

Multiple private equity firms, including several that previously showed interest in GMR, have approached Blackstone about acquiring SESAC. Blackstone is taking a selective approach, primarily engaging with these interested parties rather than actively marketing the PRO.

SESAC's portfolio includes several valuable subsidiaries:

• Audiam
• Harry Fox Agency
• AudioSalad
• HAAWK

In April 2024, SESAC expanded its Music Services Division, creating a comprehensive licensing, administration, and royalty-collection hub that encompasses these subsidiaries along with Rumblefish.

The timing appears strategic, especially considering that SESAC, unlike BMI and ASCAP, operates without consent decree restrictions. This freedom from regulatory constraints could make SESAC particularly attractive to potential buyers.

The potential sale reflects broader industry trends, with major labels and institutional investors showing continued interest in music assets. Recent notable transactions include:

• Warner Music's expansion of acquisition initiatives
• Universal Music's purchase of Downtown Music through Virgin
• Blackstone's previous acquisition of eOne Music (now MNRK) for $385 million

The market's enthusiasm for music assets remains strong, driven by their long-term value potential and the industry's high barriers to entry, despite broader economic inflation pressures.

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