A $1 billion sale of Queen’s music catalog is still on the table, despite record executives declining talk of a deal, DailyMail.com can reveal.
The sale of rights to the iconic British band’s music – including hits We Will Rock You, Bohemian Rhapsody and Radio Ga Ga – could net surviving members and the Freddie Mercury estate hundreds of millions of dollars each.
Reports surfaced on Monday that Universal Music Group was in advanced talks with Disney Music Group, which owns the rights in North America. Disney dismissed the story as “wild rumors” and said it has no plans to sell its Queen catalog.
But DailyMail.com can reveal that a deal is still possible for the lucrative worldwide rights, jointly owned by bandmates Brian May, Roger Taylor and John Deacon, along with the Mercury estate.
They own the catalog outside of North America through UK-based Queen Productions Ltd, which took in a whopping £39 million ($48 million) in royalties in 2021.
Pictured in 1970, Queen established themselves as one of the greatest rock bands of all time with hits like We Will Rock You, Bohemian Rhapsody and Don’t Stop Me Now. Their music has billions of streams on Spotify and YouTube and will earn $44 million in annual royalties by 2021
A $1 billion deal for the band’s music would break the record for music catalog sales, set when Bruce Springsteen sold the rights to his music for $550 million in 2021
The sale of Springsteen’s catalog (pictured May 30, 2023) came amid a flurry of other high-profile deals, including the sale of rights by Bob Dylan, Neil Young and Justin Bieber
The guarantee of sky-high annual revenue is seen by potential buyers, including Universal, the rumored frontrunner, as justification for the huge price tag.
A Queen Productions representative and the band members did not rule out a sale when approached by DailyMail.com.
A $1 billion deal would break the record for music catalog sales, set when Bruce Springsteen sold the rights to his music for $550 million in 2021.
That came amid a spate of other high-profile deals. Bob Dylan’s music was sold to Universal for $300 million in 2020, and Neil Young’s back catalog was valued at a similar amount months later in a deal with Hipgnosis Songs Fund.
Newer artists are also making money – Justin Bieber sold his entire catalog to Hipgnosis in January for $200 million.
The $1 billion valuation for Queen’s music is based on annual catalog revenue, which comes primarily from royalties. Investors view valued catalogs in the same way as stock in a company that pays regular dividends.
Hipgnosis, which invests in music catalogs, has indicated that the value of a premium catalog is about 18 times annual sales.
Multiplying Queen’s recent $48 million royalty income by that figure gives $864 million.
But industry insiders say the music from a band as legendary as Queen could demand multiples even higher.
Company records in the UK show that May, Taylor, Deacon and the estate of Mercury each own a 25 percent share of Queen Productions Ltd. The company paid £17 million ($21.1 million) in dividends in 2021 and in the year before.
If they still have full ownership of the catalog outside of North America, that would mean the lion’s share of sales would be split four ways.
Freddie Mercury left much of his estate to his longtime close friend Mary Austin (pictured together in 1986). She recently auctioned off a large collection of Mercury’s treasures to ‘put my affairs in order’
Brian May, photographed in March 2023 after being knighted by King Charles III, owns Queen Productions Ltd and the Mercury estate along with the other band members. The British company owns the band’s music catalog outside of North America
Queen bassist John Deacon, photographed in 2015, retired in 1997 and has kept a low profile ever since. Brian May said in 2014 that Deacon is ‘still watching the finances’, adding: ‘We don’t do anything financially without talking to him’
Queen drummer Roger Taylor performed at the Eurovision Song Contest in May 2023
Disney acquired the rights to the catalog in North America in 1990 for a modest $10 million.
In simple terms, music catalogs are usually split into the “master” copyright, which is the rights to the recordings, and the “publishing” copyright, which is the written music and lyrics.
Entertainment lawyer Jason Boyarski, who represented the Prince estate after his death in 2016, told DailyMail.com that some catalogs can fetch up to 30 times what they make annually.
He said a deal of this magnitude would likely involve the sale of royalty rights to both masters and publishers.
“The question is what price a buyer is willing to pay,” says Boyarki, who has also worked with Katy Perry, Green Day, and Lil Wayne.
Boyarski compared a sale to paying a band or artist royalties up front for many years in exchange for control of the catalog and future royalties.
He said a Queen deal would be “consistent with what’s happening in the market right now.”
“Investors, private equity investors and strategic players are willing to pay huge multiples, even with inflation, and even with rising interest rates, even with rising costs of capital.
“We’re still seeing aggressive buyers, especially for a precious asset like Queen.”
A deal is discussed when Freddie Mercury’s longtime best friend, Mary Austin, who has inherited half his estate, auctions off a large collection of the star’s personal treasures.
Austin said she is selling the items, which will be auctioned by Sotheby’s in September, “to put my affairs in order.” She said in April: “I decided it wouldn’t be appropriate to withhold things. If I wanted to sell I had to be brave and sell the lot.’
Bob Dylan’s music (left) was sold to Universal for $300 million in 2020 and Neil Young’s (right) back catalog was valued at a similar amount months later in a deal with Hipgnosis Songs Fund
Newer artists are also making money – Justin Bieber sold his entire catalog to the Hipgnosis Songs Fund for $200 million in January. Investors view popular catalogs as stocks in companies that pay regular dividends
The comment is a hint that she would be willing to sell her possible interest in the Queen catalog as well.
Mercury died in 1991, four years after being diagnosed with AIDS. He was gay but was in a long-term relationship with Austin, a lifelong friend, whom he described as his “common law wife” and “the only friend I have.”
Guitarist Sir Brian May was knighted by King Charles III in March and continues to perform, including at the Queen’s Platinum Jubilee Celebrations at Buckingham Palace in June 2022.
Drummer Roger Taylor will also continue to perform, including at the Eurovision Song Contest in May.
John Deacon, the band’s bassist, decided to retire from the limelight in 1997, shortly after Mercury’s death, and maintains only minimal contact with his bandmates.
May said in 2014 that Deacon is “still watching the finances,” adding, “We don’t do anything financially without talking to him.”
Boyarski thinks the trend of high-profile catalog sales is likely to continue as artists look to monetize and “support their lifestyle” with lucrative collections.
“There will always be a deal stream of people selling their catalogs and pocketing the money to live, especially touring artists who don’t want to tour anymore,” he said.
A spokesperson for the band told DailyMail.com: “Neither Queen Productions nor the band members have any comment to offer.”
A spokeswoman for the Disney Music Group said: “Despite the wild rumors and speculation that started this weekend with a CNN piece, we have no plans, nor do we have any future plans, to sell the Queen catalog.”