Litmus Music has made headlines once again. Since its inception in 2022, the company, supported by Carlyle’s Global Credit Platform, has been actively acquiring music catalogs from prominent artists, including Benny Blanco, Keith Urban, and Katy Perry. Earlier this year, it completed a major acquisition of music assets from Opus, which included catalogs from notable artists like Juice WRLD, Ozuna, Maluma, and Rauw Alejandro.
Now, Litmus has added another significant name to its portfolio: Randy Newman. On October 17, the company announced it had acquired Newman’s share of his recorded music and publishing rights. This deal includes Newman’s acclaimed soundtrack contributions to Disney films such as Toy Story, Cars, and The Princess & The Frog, as well as his classic studio records from the 1970s and 1980s. These tracks feature well-known songs like “I Love L.A.,” “Mama Told Me Not To Come,” “Feels Like Home,” “You Can Leave Your Hat On,” “Short People,” “Baltimore,” and “It’s A Jungle Out There.”
Key Details of The Acquisition
Although the financial terms of the deal were not disclosed, the acquisition is significant for Litmus, as it brings Newman’s iconic music under their management. However, it’s important to note that the recorded music masters for Newman’s Disney soundtracks are owned by Disney Music Group, while most of his studio work from the 1970s and 1980s is controlled by Warner Music Group. Newman has sold his royalty streams from these recordings to Litmus, while his music publishing rights continue to be managed by Universal Music Publishing Group.
Expansion And Growth of Litmus Music
Litmus Music was founded by industry veterans Dan McCarroll and Hank Forsyth in mid-2022, with initial backing of $500 million from Carlyle Global Credit. This funding was a combination of equity and debt. The company further expanded its financial resources earlier this year, increasing its credit facility from $250 million to $400 million to support the acquisition of Opus’ music assets.
Discussing the latest acquisition, Dan McCarroll, Co-Founder and Chief Creative Officer of Litmus Music, praised Newman’s unique artistry. “Randy Newman is a unique and brilliant songwriter, composer, and performer whose body of work has proven him to be an artist for the ages,” said McCarroll. “There is absolutely no one like him, and his influence on the music world cannot be overstated. We couldn’t be more proud and excited to acquire Randy’s catalog of beautiful, witty, and sharply observational songs.”
Hank Forsyth, Co-Founder and CEO of Litmus Music, emphasized the lasting impact of Newman’s music. “Randy’s music has touched so many generations. His songs continue to transcend time and illuminate films,” said Forsyth. “Dan and I, along with the entire Litmus team, are grateful Randy has trusted us as his partner to care for these songs and recordings. It is an honor and responsibility we don’t take lightly.”
Carlyle’s Perspective on Music Investments
Alex Popov, Head of Private Credit at Carlyle, expressed enthusiasm for the acquisition. He highlighted the value of Newman’s music, particularly due to its association with beloved Disney films. “Randy Newman’s music has been a staple of childhood memories and experiences for decades,” said Popov. “Litmus Music continues to partner with the world’s leading artists to promote and drive value for iconic catalogs.”
In an interview with Reuters, Popov emphasized the broader appeal of music investments. “Music is an industry with significant tailwinds. It provides investors with uncorrelated income – investors receive a stream of cash flows that is not correlated with more traditional economic activity – and it is a sizeable market,” he explained. He added, “With Randy Newman’s catalog, there is a significant value that’s being created by its affiliation with Disney and some of the storied movies like Toy Story. This is the type of asset that we gravitate to. In terms of stability of demand, Newman is at the top of the list.”
Randy Newman’s Musical Legacy
Randy Newman’s career began with the release of his self-titled debut album in 1969. Over the following decades, he released a series of critically acclaimed albums, including 12 Songs, Sail Away, Good Old Boys, Little Criminals, Born Again, Trouble in Paradise, Land of Dreams, and Bad Love. Since 2003, Newman has continued to create music, releasing three volumes of the Randy Newman Songbook, as well as Randy Newman: Live in London (CD/DVD), Harps and Angels, and Dark Matter.
The acquisition of Randy Newman’s catalog by Litmus Music marks a significant addition to its growing portfolio, reinforcing its strategy of partnering with iconic artists to secure and promote timeless music assets.
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