More On The Alpert/Moss/Vivendi Settlement

[Captain Bacardi]

There's a nice little story about the $200 million settlement that Herb & Jerry received from Vivendi a couple of months ago. Interesting to see that Herb had "no comment" on the matter.

http://www.latimes.com/business/la-fialpert12mar12,1,6223593.story

Capt. Bacardi

 

[stefandaystrom]

There's a nice little story about the $200 million settlement that Herb & Jerry received from Vivendi a couple of months ago. Interesting to see that Herb had "no comment" on the matter.

http://www.latimes.com/business/la-fialpert12mar12,1,6223593.story

When I try clicking on that link, all I get is from the LA Times site is: "There was an error processing your request. The most likely cause is the URL is not valid."

 

[Mr Bill]

Same here.

--Mr B

 

[Captain Bacardi]

When I try clicking on that link, all I get is from the LA Times site is: "There was an error processing your request. The most likely cause is the URL is not valid."

Hmmm, it did it to me as well. So I'll just paste the story here:

Herb Alpert's Vivendi Deal Has $200-Million Encore Performance
Under a 2000 sale pact, the firm pays the mogul and his partner after its shares fall below $37.50.

Trumpeter-businessman Herb Alpert and partner Jerry Moss have gotten down to brass tacks with Vivendi Universal, collecting an additional $200 million from the French giant for a music publisher they sold three years ago.

The payment, in cash and stock, was part of a contractual guarantee connected with the sale in 2000 of independent publisher Rondor Music.

Alpert and Moss originally sold Rondor to Seagram Co. Shortly thereafter, Seagram was gobbled up by Vivendi.

The pair were to be paid 6 million Seagram shares, then valued at $350 million. But the deal required Vivendi to offer an additional payment if its shares fell below $37.50.

Alpert and Moss sold their Vivendi stock in April and May, when it traded in the $30 range, the Paris-based company disclosed Tuesday. That triggered the additional compensation.

The shares had been plunging amid Vivendi's financial crisis last year.

Vivendi said it paid the music entrepreneurs extra compensation of 8.84 million shares and a $100.3-million cash payment. At current exchange rates, the shares are valued at $109 million.

Payment of the debt to Alpert and Moss marks an additional headache for Vivendi, which is trying to raise money by selling assets.

Rondor controls a 60,000-tune catalog that includes classic numbers by Otis Redding, Al Green and the Beach Boys, as well as the soul songs in the legendary Stax collection.

The publisher is headed by Lance Freed, son of the famed 1950s rock deejay Alan Freed. One of its first compositions was "Lonely Bull" recorded by Alpert and his band, the Tijuana Brass. The song was cut for A&M Records, then owned by Alpert and Moss.

The pair sold the thriving label, which released music by such acts as Peter Frampton and the Police, to PolyGram nearly 15 years ago for about $500 million. Seagram acquired A&M as part of its $10.4-billion purchase of PolyGram in 1998.

Alpert and Moss later filed a $200-million lawsuit alleging that the consolidation of Seagram's Universal Music Group and PolyGram violated terms of their A&M sale. They agreed to settle their dispute as part of the sale of Rondor to Seagram.

Alpert declined to comment through a spokeswoman. Moss could not be reached.


Capt. Bacardi

 

[Jay Maynes/Juan Oskar]

I don't think I understand. For the last 15 years did Alpert & Moss not have the rights to much of the TJB catalog? ie...The Lonely Bull etc. Later...Jay

 

[Mr Bill]

They sold the publisher, Rondor (Almo/Irving), so while Alpert retains the rights to his recordings, the publishing rights were sold in what any sane person would call a great deal. If someone told you you could start a label and publisher for $200 and sell it all 25 and 30 years later for several hundred million... Well, who wouldn't go for it?

--Mr Bill
who wonders if and when Herb DOES re-release his recordings he'll have to pay his own company (now in the hands of Vivendi) for the right to do so?

 

[Michael Hagerty]

Mr. Bill:
Regarding your afterthought...probably so...which is probably why we're not seeing a big rush on Herb's part.

---Michael Hagerty

 

[jimac51]

Is there anything new in here that I don't see? As for the silence on Herb & Jerry's part,it's quite possible that the "No comment" is part of the conclusion of the situation. Not unlike a divorce(Universal vs. Alpert/Moss),these two sides may play a part in each other's lives at some future date. P***ing off someone with a throwaway remark can only bring harm and so far Herb and Jerry have proven way too smart for something like that. Over the last few years they have taken Polygram,and now parent Universal, for something in the neighborhood of a billion dolllars. I'd keep quiet,too. Mac

 

[Rudy]

Over the last few years they have taken Polygram,and now parent Universal, for something in the neighborhood of a billion dolllars. I'd keep quiet,too. Mac

Gosh...I never thought of it that way...but once you add up the amounts over the years, it DOES add up to something in the neighborhood of a billion dollars. That's a helluva return on a nearly 30 year investment!

I want to find that person who built Herb's L.A. garage and have him build one for ME!