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Warner Music Group is hoping to purchase Death Row Records' music catalog - as part of the beleaguered label's bankruptcy proceedings - even if it cost $25 million.
The label that was once home to Tupac Shakur, Dr. Dre and Snoop Dogg has been handled by a bankruptcy trustee since July 2006, due to what U.S. Bankruptcy Judge Ellen Carroll termed "gross mismanagement" by owner Marion "Suge" Knight.
Now the New York Post has reported that Warner Music Group may end up with Death Row's music assets. According to a February 1st filing in US Bankruptcy Court for the Central District of California, Warner Music Group, headed by CEO Edgar Bronfman and Lyor Cohen, is being named the lead bidder in Death Row's bankruptcy proceedings having offered $25 million for control of the catalog.
Despite the lofty offer, transferring ownership of the catalog may be extremely difficult because Death Row's right to some of the estimated 10,000 tracks has been contested by both Dr. Dre, who claims he is owed royalty payments from The Chronic, and Afeni Shakur, mother of late rapper Tupac Shakur, who claims rights to his unreleased music. Warner's offer only stands if those works are included in the catalog.
Ownership of Death Row's catalog would be a strategic step for WMG, largely because its music publishing division, Warner Chappell already manages some of the label's songs.
If the deal doesn't go through, Warner and Death Row have set up a non-bidding agreement (that includes a $500,000 break-up fee provision for Warner) which is still awaiting court approval.
According to court documents, Death Row's catalog has scored interest from at least 18 different parties including unnamed labels, banks and film-finance companies. Sources say Koch Records, sometime distributor for the label, and the Lehman Brothers-backed Evergreen Copyrights which owns the writer's portion of Tupac's catalog have also shown interest in securing control of the catalog.
Competing bidders have until April to top Warner's offer; at which point a court-run auction will determine the fate of Death Row's catalog.
Knight and Death Row filed for bankruptcy in April 2006, listing $137 million in debt and just $4.4 million in assets. He founded the label in 1991.
Source: sohh.com
The label that was once home to Tupac Shakur, Dr. Dre and Snoop Dogg has been handled by a bankruptcy trustee since July 2006, due to what U.S. Bankruptcy Judge Ellen Carroll termed "gross mismanagement" by owner Marion "Suge" Knight.
Now the New York Post has reported that Warner Music Group may end up with Death Row's music assets. According to a February 1st filing in US Bankruptcy Court for the Central District of California, Warner Music Group, headed by CEO Edgar Bronfman and Lyor Cohen, is being named the lead bidder in Death Row's bankruptcy proceedings having offered $25 million for control of the catalog.
Despite the lofty offer, transferring ownership of the catalog may be extremely difficult because Death Row's right to some of the estimated 10,000 tracks has been contested by both Dr. Dre, who claims he is owed royalty payments from The Chronic, and Afeni Shakur, mother of late rapper Tupac Shakur, who claims rights to his unreleased music. Warner's offer only stands if those works are included in the catalog.
Ownership of Death Row's catalog would be a strategic step for WMG, largely because its music publishing division, Warner Chappell already manages some of the label's songs.
If the deal doesn't go through, Warner and Death Row have set up a non-bidding agreement (that includes a $500,000 break-up fee provision for Warner) which is still awaiting court approval.
According to court documents, Death Row's catalog has scored interest from at least 18 different parties including unnamed labels, banks and film-finance companies. Sources say Koch Records, sometime distributor for the label, and the Lehman Brothers-backed Evergreen Copyrights which owns the writer's portion of Tupac's catalog have also shown interest in securing control of the catalog.
Competing bidders have until April to top Warner's offer; at which point a court-run auction will determine the fate of Death Row's catalog.
Knight and Death Row filed for bankruptcy in April 2006, listing $137 million in debt and just $4.4 million in assets. He founded the label in 1991.
Source: sohh.com