Katy Perry has cashed in on her catalog of hits, selling her stake in her master recordings and publishing rights to Litmus Music for a reported $225 million, according to Billboard.
The deal covers the five albums Perry released for Capitol Records, starting with 2008’s One of the Boys and ending with 2020’s Smile. That run also includes 2013’s Prism, 2017’s Witness, and Perry’s blockbuster 2010 effort, Teenage Dream, which spawned five Number One Hot 100 hits.
Perry’s decision to sell to Litmus makes sense, as its co-founder Dan McCarroll, used to run Capitol Records. “Katy Perry is a creative visionary who has made a major impact across music, TV, film, and philanthropy,” McCarroll said in a statement. “I’m so honored to be partnering with her again and to help Litmus manage her incredible repertoire.”
Litmus Music is a relatively new player in the music catalog acquisition world, forming last August with a $500 million backing from the massive private equity firm, the Carlyle Group. In Dec. 2022, Litmus announced its first major acquisition: Keith Urban’s catalog, with the country superstar selling his sound recording and publishing rights to 10 studio albums, a greatest hits compilation, and 24 songs that hit Number One on the Country charts. More recently, this past June, Litmus acquired a “portfolio of compositions” from songwriter/producer Benny Blanco.
While the catalog acquisition gold rush of a few years ago has largely been tampered by the rise in interest rates, there have still been a handful of major sales this year. Prior to Perry, Justin Bieber sold the rights to his entire back catalog — 290 songs released before Dec. 31, 2021 — to Hipgnosis Songs Capital (an exact fee wasn’t revealed though the deal was reportedly valued around $200 million at one point). Additionally, prog rock greats Yes sold the rights to their first 12 albums to Warner Music Group; Robby Krieger and the Ray Manzarek estate sold their stake in the Doors to Primary Wave Music; and Paul Simon sold a “substantial stake” in his rights to the royalty income from Simon and Garfunkel’s catalog to BMG.
