David Bowie music catalog value

The David Bowie estate is negotiating the sale of the music catalog. Offers are around US$200M.

Already in the early 2000s David Bowie issued bonds based on his music and the royalty income from licensing. He was the very first artist then. The bond sold for US$30M then.

Recently, the David Bowie estate signed a long term licensing agreement for the so-called masters, the original recording by David Bowie, with Warner Music. This guarantees licensing income for the potential buyers. And it is an excellent basis to calculate the purchase price.

David Bowie is a prime example of successful licensing. And brand management and evaluation.

habitat revival

Interior design and furniture define ‘lifestyle’ much more than fashion. It is a lot easier and less expensive to change your wardrobe, than your furniture, house or apartment.

One outstanding, international design brand was habitat. Founded by Sir Terence Conran in 1964, who’s mantra was: “design has to improve life”.

habitat become a success and grew into a large chain of stores internationally. Then it changed hands often, at one time it belonged to the Kamprad family along with IKEA. And then it went bust.

Eventually Britain’s second biggest grocery retailer Sainsbury’s bought the brand alongside Argos years ago.

Now Sainsbury’s is trying a revival. habitat gets space in the supermarket stores, at lower price points.

For more of the original see The Conran Shops.

SBG auction

Pure licensing company Sequential Brands Group (SBG) filed for Chapter 11 in August. During the proceedings it is auctioning off its remaining labels and brands including Jessica Simpson, Avia, AND1 and William Rast.

Earlier this year, SBG sold Caribbean Joe for US$3M and Ellen Tracy for US$17M. Both are licensed successfully. In 2013 SBG paid more than US$80M.

Linnens ‘N’ Things went to Retail Ecommerce Ventures. It converts companies from classic retail, or ‘brick and mortar’, to e-commerce.

Martha Stewart had left SBG earlier and moved to Marquee Brands.

ABG + Wolverine buying Reebok

Press reports, brand company Authentic Brands Group and shoe producer Wolverine World Wide together will buy Reebok from Adidas.

The purchase price will be up to US$2.5B and paid mostly in cash upon closing in 2022. That is significantly fewer than what Adidas paid for Reebok. Yet it is substantially more, than what was feared.

With ABG comes its large shareholder, Shaquille O’Neal. The ex basketball star can add a lot of cloud, credibility, and PR to Reebok.

The acquisition is a good story for the Authentic Brands Group IPO. And it should make other shareholders like BlackRock and Leonard Green & Partner quite happy.

Sweaty Betty instead of Reebok

The American company Wolverine is a proprietor of brands like Hush Puppies, Sperry, and licensee for instance of Caterpillar, Harley Davidson.

Together with Authentic Brands Group, Wolverine wanted to purchase Reebok from Adidas.

Now Wolverine is acquiring the originally English active wear chain  ‘Sweaty Betty’, with stores in the UK, USA and Asia, for roughly US$ 400 Mill.

The competition still is the same, LuluLemon. Founded in 1998, the Canadian fitness and yoga brand generated sales of ~ US$ 4 Billion in 2019.

The market of fitness, athleisure, was dominated by Reebok once. It made Reebok big. At the time it was called aerobics.

PVH sold heritage brands

PVH Corp. is selling its ‘Heritage Brands’ like IZOD, Van Heusen, ARROW and Geoffrey Beene.

The buyer is Authentic Brands Group, the purchase price appr. US$200 Mill.

PVH will focus on the bigger Calvin Klein and Tommy Hilfiger, on international business, and on e-commerce.

It will remain as licensee for shirts, ties, and keep Warner’s underwear business.

ABG will buy some licensees along with the brands.

Zegna + SPAC

The French luxury market has been dominated by two publicly traded Groups, LVMH and Kering for a while. And both acquired Italian brands.

The Italian market stayed more diversified with companies like Armani, Brunello Cucinelli, Dolce & Gabbana, Ferragamo, Kiton, Max Mara, Prada, Tod’s to name a few.

Now Ermenegildo Zegna Group is going public via SPAC. Over years Zegna developed from textile, to menswear, to women’s wear and licensor. It took a license from Maserati, and bought brands like Thom Browne.

The Marzotto Group took a similar path earlier. Originally a textile company too, at one point they owned Hugo Boss, Valentino, and were the licensee of Marlboro Classics.

Behind the SPAC is InvestIndustrial, a private equity company, with former and current interests in Aston Martin Lagonda, Ducati, Morgan Motor Company, B&B Italia, Jacuzzi.