LOS ANGELES—MediaTechnics Corp. (PINKSHEETS:MEDT) has signed a letter of intent to purchase Global Music Group-New York (GMG-NY), the company that won the bid to acquire the assets of Death Row Records in U.S. Bankruptcy Court in June of this year for $24Mil. MediaTechnics intends to provide Global Music with the funds needed to complete the acquisition.
This landmark deal would give MediaTechnics ownership of Global Music Group, which will hold upon completion of the purchase–free and clear of all liens, claims and encumbrances–all of the assets that comprise Death Row Records, including Death Row’s catalog of master recordings and published music, as well as all trademarks and other intellectual properties, licenses, artist and writer agreements, works in progress and options. An independent valuation of the bankruptcy estate completed last month placed the value of the assets at $32Mil.
The assets include a significant amount of previously released material by the late Tupac “2Pac” Shakur and other top artists, as well as almost all of the previously released music of Dr. Dre and 2Pac. The 2Pac music has spawned great interest with the media since the possibility of its imminent release became news.
MediaTechnics President Richard Wilson said, “The acquisition of Global Music and Death Row Records will represent a landmark turning point for our company. Together with our subsidiaries, the Live Network and CRD Technologies, the prospects of co-branding, licensing and new product development are astounding.” Susan Berg, President of Global Music Group-NY said, “We are delighted by the prospects that this imminent transaction could bring to our two companies and believe the outcome, both financially and creatively, can be an incredible force."