Dr. Dre sells music assets to Shamrock and Universal in deal worth more than $200 million (report)

Dr. Dre sells music assets to Shamrock and Universal in deal worth more than $200 million (report)

Dr. Dre is reportedly close to selling some of his music assets in two separate deals, with Shamrock Holdings and Universal Music Group, for more than $200 million.

The assets include a package of music revenue streams and a few other catalog assets that generate nearly $10 million in annual revenue, according to a report from Billboard on Wednesday (January 11).

Citing sources, Billboard reports that Dr. Dre is selling his artist royalties from two of his solo albums and his artist royalties from the hip hop group NWA, which he formed with Ice Cube, Arabian Prince and Eazy-E in 1987.

He is also selling his producer royalties, his share as a writer of his catalog of songs to which he does not own the publishing rights, such as his share of the songs in his The chronic (1992) album, released by Sony Music Publishing, Billboard aggregate.

Shamrock is reportedly on the verge of acquiring between 75% and 90% of those assets. The investment firm is best known for acquiring ownership of the master recordings of Taylor Swift’s first six studio albums from Big Machine Records in November 2020 for more than $300 million.

Meanwhile, Universal Music will buy the remaining 10% to 25% of the revenue generated from Dr. Dre’s catalog assets, according to Billboard.

UMG will also reportedly acquire ownership of the master recording of Dr. Dre’s first solo album, The chronic. Ownership of the master recording of that album will revert to Dr. Dre in August from Death Row Entertainment.

sources said Billboard that although the sellers expected to raise $250 million from the sale, the combined payments likely fell short, bringing the deal’s value to just over $200 million.

A source close to Dr. Dre reportedly confirmed the deal to Variety, revealing that the final sale price is likely to be below the asking price of $250 million, but still over $200 million.

Both Billboard Y Variety reported that the deals were purchased by longtime Dr. Dre attorney Peter Paterno of King, Holmes, Paterno & Soriano.

The acquisition by UMG would strengthen its relationship with Dr. Dre. The rapper is a co-owner of Aftermath Entertainment, a joint venture with Interscope Records, which is in turn owned by UMG. Dr. Dre has also been with Interscope for most of his solo career.

Through Aftermath, Dr. Dre signed Eminem, Kendrick Lamar, Anderson .Paak and Silk Sonic. Past acts on the label include 50 Cent, The Game, and Busta Rhymes.

Dr. Dre is among the most influential hip-hop stars of all time. His first studio album, The chronicit was one of the albums to be archived at the Library of Congress in 2000 along with Dusty Springfield’s. Dusty in Memphis, tina turner private dancer and selena’s Come with me.

The chronic is considered one of the most important and influential albums of the 1990s and is considered by many fans and peers to be the best-produced hip-hop album of all time,” said the National Recording Registry.

Dr. Dre began his career in World Class Wreckin’ Cru in 1985 before forming the NWA

Throughout his career, Dr. Dre has worked with some of the hottest acts in R&B and hip-hop, including Snoop Dogg, Eminem, 50 Cent, Mary J. Blige, and Kendrick Lamar. The six performed together for Pepsi’s Super Bowl LVI halftime show last year.

In addition to establishing his own label, Dr. Dre also formed the audio brand Beats Electronics with his partner, Jimmy Iovine in 2006. Apple Inc. later acquired the brand for $3 billion.

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