Global music company BMG and global investment firm KKR today announced that they have acquired the entire music interests of American rock icons ZZ TOP. According to Variety, BMG paid a sum sources place at around $50 million.
The transaction marks the latest significant music rights deal the two companies have struck together since announcing in March 2021 that they would join forces in the fast-growing market for music IP.
The ZZ TOP agreement includes a buyout of the band's publishing catalogue and their income from recorded royalties and performance royalties. Previously, BMG served as co-publisher and administrator of ZZ TOP's publishing catalog.
In 1971, Billy Gibbons (guitar, vocals),Dusty Hill (bass, keys, vocals) and Frank Beard (drums) released their debut album ZZ TOP's first album. They would go on to release a total of 15 albums throughout the course of their 50-year career including the commercial breakthrough "Tres Hombres" (1973),platinum-certified "Degüello" (1979),gold-certified "El Loco" (1981),smash-hit diamond-certified "Eliminator" (1983),five-times-platinum-certified "Afterburner" (1985),and the platinum-certified "Recycler" (1990) and "Antenna" (1994).
Selling over 50 million albums worldwide, ZZ TOP have earned four gold, three platinum, two multiple-platinum album certifications, and one diamond album. Known for their distinctive look and unabashed blues-rock inspired sound, the success of the group was driven by six No. 1 rock singles and eight Top 40 hits including rock music staples "La Grange", "Tush", "Cheap Sunglasses", "Gimme All Your Lovin'", "Legs", "Got Me Under Pressure" and "Sharp Dressed Man", among many others.
In 2004, the group was inducted into the Rock And Roll Hall Of Fame and their recently released documentary "That Little Ol' Band From Texas" received a nomination for "Best Music Film" at the 2021 Grammy Awards.
ZZ TOP manager Carl Stubner of Shelter Music Group said: "We are proud to continue working with and expand our long-standing relationship with BMG. This new deal ensures ZZ TOP's remarkable legacy will endure for generations to come."
BMG CEO Hartwig Masuch said: "This deal is a testament to the success, staying power and continuing musical relevance of ZZ TOP, but also to the power of our partnership with KKR. This agreement furthers our vision of providing artists and songwriters not just a financial exit, but also a vehicle committed to respecting and treasuring their artistry."
Jenny Box, partner at KKR, said: "We are excited to invest in ZZ TOP's iconic music and we look forward to collaborating with BMG and ZZ TOP to further amplify the reach of their catalogue."
KKR is investing in the catalogue through its private credit investment funds and vehicles and will own its interest in the music through its recently launched Chord Music Partners platform. Latham & Watkins LLP served as advisor to KKR on the transaction.