Reservoir Media In Talks to Go Public Via Roth II SPAC
(Bloomberg) -- Music publisher Reservoir Media Management is in talks to go public through a merger with Roth Ch Acquisition II Co., a blank-check firm, according to a person with knowledge of the matter.
A merger between Roth and New York-based Reservoir, founded by Golnar Khosrowshahi, would value the combined entity at more than $700 million, said the person. Terms aren’t finalized and it’s possible talks could fall apart.
A Roth representative declined to comment and representatives for Reservoir didn’t immediately respond to requests for comment.
Roth said in a filing last month that on Feb. 15 it entered a mutually exclusive non-binding letter of intent with a target company, without naming it.
Reservoir Media was founded in 2007 and represents over 130,000 copyrights and 26,000 master recordings from artists including Sheryl Crow, Lady Gaga, Bruno Mars and John Denver. A Spotify playlist on its website featuring Reservoir Media tracks also includes music from Justin Bieber, Miley Cyrus and Ariana Grande.
The company also owns film music rights including scores created by Hans Zimmer featured in The Lion King, Gladiator and the Pirates of the Caribbean series, among others.
Reservoir describes itself as family-owned. It’s backed by Vancouver-based Persis Holdings, a firm founded by Hassan Khosrowshahi, the Persis website shows.
The Roth SPAC, led by CEO Byron Roth, raised $115 million in a December initial public offering.
If a deal between Roth and Reservoir is agreed, it would follow the agreement struck by Anghami, the Abu Dhabi-based music-streaming service that claims over 70 million users, with a SPAC earlier this month.
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