Private equity acquisition of media firms began in earnest in 2004

Evidence

Though earlier examples exist (e.g., Blackstone helped finance Sony’s acquisition of CBS Records in 1988; both Blackstone and Apollo invested in Sirius in the late 1990s; KKR and others acquired Regal Cinemas in 1998), the year 2004 is a fitting marker for the start of sustained financialization in the media sector as multiple companies—MGM Studios, WMG, AMC Theatres, Cinemark, and Odeon Cinemas—were acquired by PE firms. Since then, weaker sectors of the industry, such as record labels (EMI) and radio (Cumulus, Clear Channel/iHeartMedia) have been common targets for PE profit extraction, while talent agencies have been the most recent acquisitions, with four major agencies (CAA, WME, IMG, and ICM) now owned by private equity. — Andrew deWaard, Derivative Media, 139

Since the turn of the century and the erratic digital transition that accompanied it, the media industries have been seen as distressed assets and, thus, have been in the crosshairs of private equity. As evidenced by table 2.2 and explored in more detail in the next two chapters, the cultural industries have fallen victim to the predations of private equity. Though earlier examples exist (e.g., Blackstone helped finance Sony’s acquisition of CBS Records in 1988; both Blackstone and Apollo invested in Sirius in the late 1990s; KKR and others acquired Regal Cinemas in 1998), the year 2004 is a fitting marker for the start of sustained financialization in the media sector as multiple companies—MGM Studios, WMG, AMC Theatres, Cinemark, and Odeon Cinemas—were acquired by PE firms. Since then, weaker sectors of the industry, such as record labels (EMI) and radio (Cumulus, Clear Channel/iHeartMedia) have been common targets for PE profit extraction, while talent agencies have been the most recent acquisitions, with four major agencies (CAA, WME, IMG, and ICM) now owned by private equity. — Andrew deWaard, Derivative Media, 139

Categorization

• XREF: Names the concrete PE acquirers (Blackstone, Apollo, KKR, Bain, TPG) and targets (Regal, AMC, CAA, iHeartMedia) that the reader will need to trace specific instruments through later chapters.
• ADDENDUM: Catalog/asset acquisition is a core instrument for the reader’s stated project of tracing ownership structure to artistic form.
• corroborated: 2 independent passages support this claim — Andrew deWaard, Derivative Media: How Wall Street…, 139