CJ Johnson, head of entertainment investment banking at Truist Securities, says a mismatch between how public markets value music companies and how catalog assets actually perform is contributing to a slowdown in catalog acquisitions. He argues that short-term quarterly earnings pressure on public equities does not reflect the long-horizon economics of music rights, making valuations harder to reconcile for buyers and sellers.
Johnson also addresses the effects of consolidation among major buyers of catalogs, suggesting fewer active acquirers has changed deal dynamics and pricing expectations across the market. He points to capital increasingly flowing into areas adjacent to traditional publishing, signaling where investors are looking next as straightforward catalog deals become harder to close.
Read the full story at Music Business Worldwide.