Katy Perry Sells Music Rights Bundle for $225 Million to Litmus Music
Katy Perry has completed a significant deal by selling a bundle of her music rights to Litmus Music for a reported $225 million (£182 million). This deal, unveiled on Monday, encompasses all five of Perry’s albums released under Capitol Records, spanning from her debut album “One of the Boys” in 2008 to “Smile” in 2020. Her catalogue includes chart-topping hits like “Firework,” “Teenage Dream,” “Hot ‘n’ Cold,” “California Gurls,” and “I Kissed a Girl.”
This transaction stands as the most substantial catalogueue deal for a solo artist in 2023, surpassing Justin Bieber’s earlier sale of his back catalogueue to the UK-based Hipgnosis Songs Capital for $200 million (£162 million) in January.
Litmus Music now holds Perry’s share of the master recordings and publishing rights for these albums, granting them the rights to collect future royalties generated by her music. Notably, two of Perry’s songs, “Dark Horse” and “Roar,” have garnered over one billion streams on Spotify, with “Roar” being among the most-watched videos on YouTube, amassing 3.8 billion views.
While Katy Perry was a prominent figure in the 2010s music scene, she has shifted her focus in recent years. She has dedicated time to her Las Vegas residency and started a family with her partner, actor Orlando Bloom. Perry will also return as a judge for her seventh season on the popular TV show “American Idol” next year.
Litmus Music, co-founded by former Warner Music and Capitol Records president Dan McCarroll and backed by The Carlyle Group with $500 million (£404 million), cited its “longstanding working relationship” with Perry as a key factor in securing this deal. Litmus has previously acquired the music rights of artists like Keith Urban and a “portfolio” of tracks by songwriter Benny Blanco.
The trend of selling music rights has become a lucrative business for artists in recent years, with prominent musicians like Bob Dylan, Neil Young, Shakira, Debbie Harry, and Justin Timberlake opting to exchange future royalties for substantial upfront sums.
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