A music rights company last week acquired half of Prince’s contested estate from his heirs. Now, a new album recorded in 2010, ‘Welcome 2 America,’ has just been released.
A music rights company last week acquired half of Prince’s contested estate from his heirs. Now, a new album recorded in 2010, ‘Welcome 2 America,’ has just been released.
With the value of his music catalogue still subject to an ongoing dispute between the trust managing his estate and the IRS, Prince, who died in 2016, has a new partner.
Primary Wave, whose catalog includes songs by Nirvana, Bob Marley, Ray Charles and Smokey Robinson, has taken a roughly 50% stake in Prince’s estate, buying out the interests of three of the late musician’s siblings. Primary Wave is said to have $1.6 billion in investible assets.
A highly creative and successful writer, producer and performer, Prince was also a savvy IP strategist, who sought to control his work, name and image. He was a fierce defender of his intellectual property rights, and was involved in a series of legal actions against businesses and individuals using his music and other IP without his authorization. He also railed against his record company, which sought to assert ownership rights over his catalogue and name.
Prince’s estate, now half owned by strategic investor, Primary Wave, released on Friday “Welcome 2 America,” an album the artist recorded 11 years ago. The timing is opportune for both the estate and investor, both of which are likely to benefit from the well-timed release. Reviews have been good for the politically themed collection, a tribute to the artist’s timeless output.
“Until an agreement is reached with the Internal Revenue Service on how much is owed in taxes and how they will be paid,” reports the Wall Street Journal, “the estate remains in the hands of Comerica Bank & Trust, which was appointed as fiduciary in 2017. As a result, the regional bank is steward of creative decisions, including Friday’s arrival of ‘Welcome 2 America,’ a previously unreleased album from the vault.”
Monetizing Prince’s once carefully controlled writing, recordings and brand appears to be in the hands of a strategic investor with experience monetizing the estates of artists, dead and alive. Recent sales of Bob Dylan’s catalogue for more than $400 million help to make Prince’s estate attractive, with both unreleased and under-marketed but still timely IP. Other music catalogues that have recently sold include those of Fleetwood Mac, Neil Young, Shakira and John Lennon. It is unclear what other IP rights were included.
The last 12 months have seen an explosion of deals for music, with major publishers, private equity, with hedge fund billionaire William Ackman among those investing in music assets. Prince’s estate—encompassing his music, image, likeness and property—is seen a lucrative, but it has been in flux for five years. The estate has been tied up in probate with a bank, lawyers, advisers and heirs haggling over fees and the reclusive artist’s assets, unreleased music and legacy.
The Internal Revenue Service claims the executors of Prince’s estate have low-balled its value by 50%, or about $80 million, according to the StarTribune, triggering a dispute that could prolong the late musician’s already tortuous and expensive probate proceedings.
The IRS determined that Prince’s estate is worth $163.2 million, well above the $82.3 million valuation submitted by Comerica Bank & Trust, the estate’s administrator. The big gap primarily involves Prince’s music publishing and recording interests. The estate has been valued at $100 million to $300 million.
