SESAC has completed its acquisition of the Harry Fox Agency from the National Music Publishers' Assn. While terms of the deal weren't disclosed, sources suggest that SESAC paid about $20 million-$25 million for the mechanical rights organization. The deal had been waiting approval by the NMPA membership.
The deal gives SESAC enhanced licensing capabilities, which could allow it to bundle licensing for interactive digital services that require both performance and mechanical licensing. Moreover, through the HFA slingshot operation, it also moves SESAC into the space of helping digital services sort out licensing reporting and payments to publishers and songwriters.
"The Harry Fox Agency (HFA) is the leading U.S. mechanical rights organization and this acquisition establishes SESAC as the only Music Rights Organization in the United States," SESAC chairman and CEO John Josephson said in a statement. "SESAC will have the ability to offer singular licenses for the works of its affiliated writers and publishers that aggregate both performance and mechanical rights for those users interested in such an option. We look forward to driving greater efficiency in licensing for music users, as well as enhanced value for music creators and publishers."