Downtown Music sells a catalog of 145,000 songs to Concord for $400 million, sources say

·1 min read
FILE PHOTO: Aretha Franklin performs at Radio City Music Hall in New York

SAO PAULO (Reuters) - New York-based Downtown Music Holdings is selling a 145,000-song catalog to music rights company Concord Music for about $400 million, two sources close to the matter said on Tuesday.

The talks to acquire the music copyright to songs including some performed by the likes of Adele, Aretha Franklin, Beyonce, David Bowie, Bruno Mars, Lady Gaga and Marvin Gaye, began in January, the sources added.

California-based Concord, which is controlled by pension fund Michigan Retirement Systems, and Downtown Music announced the deal on Monday without disclosing the value.

Downtown Music has built the catalog over the past 14 years and will reinvest proceeds in the music services sector, which will become its core business.

CEO and founder Justin Kalifowitz told Reuters that the sale will help Downtown to be viewed as a neutral service provider to the artists, offering distribution, copyright management, marketing and financing for songwriters and artists.

The company has made seven acquisitions of music services businesses over the past two years.

(This story corrects headline and first paragraph to reflect that Downtown is selling a catalog of 145,000 songs instead of selling its entire catalog of songs)

(Reporting by Tatiana Bautzer; Editing by David Goodman)