Universal Music Group has swooped for digital marketing agency Fame House in a $1m cash deal.
Philadelphia-based Fame House is being sold off by SFX Entertainment, the live music giant which tumbled off the stock market and into Chapter 11 bankruptcy in February.
The deal was approved on May 26 by the Delaware Bankruptcy court.
In addition to the $1m sale price, UMG Commercial Services Inc. has agreed to take on about $400,000 in debts and liabilities (‘cure amounts’).
(MBW has obtained the court-approved sale agreement, signed by UMG’s Boyd Muir, which you can read through here.)
“[UMG’s bid] embodies the highest or otherwise best offer the debtors have received to date for the fame house assets.”
Adam Keil, Moelis & Co
Fame House was founded in 2011 as a digital marketing agency that serves the entertainment industry, producing online marketing campaigns for artists.
It provides digital marketing, social media management, merchandising and other services for its clients, who include Ice Cube, Pearl Jam, Eminem (pictured) and Tiesto.
It was acquired by SFX Marketing LLC in 2013.
Adam Keil, MD of Moelis & Company, was representing SFX and Fame House’s best interests during the process.
In a submission to the court (which you can read through here), he wrote:
“UMG has held discussions with certain members of Fame House’s senior management that contemplate their continued employment after the Closing of the transaction contemplated by the Final Purchase Agreement.”
He added: “The terms of the Final Purchase Agreement embody the highest or otherwise best offer the Debtors have received to date for the Fame House Assets.”Music Business Worldwide