Bug Music Reportedly On The Block

The New York Post is reporting today (6/2) that Bug Music, one of the world’s biggest independent music publishers, is being shopped by JPMorgan Chase, with an asking price of $300 million.

In the chase for the firm are several big record companies including Warner Music Group, Universal Music Group, Sony/ATV Music and a joint venture with private equity powerhouse KKR and BMG.

The privately-owned indie publisher/administrator reps acts such as Kings of Leon and Kara DioGuardi. Bug claims to have shares in eight top 100 charting hits in the first quarter including the Kings of Leon hit, “Use Somebody,” and “Sex on Fire.” The company is number six in the Billboard top publishers chart.

At $300 million, Bug is looking for a higher multiple than other recent music company sales. That price would equate to 12 times net publisher’s share (NPS), or the equivalent of gross margin. Revenue is said to be $70 million.

Bug was established in Los Angeles in 1975 by entrepreneur Dan Bourgoise.