Dr. Dre sells catalog assets to Universal Music and Shamrock Holdings in more than $200 million deal

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Dr. Dre is selling a collection of music revenue and other assets in a deal pitched for $250 million, sources confirm Variety.

The assets, which generate nearly $10 million annually, will be acquired by Shamrock Holdings and Universal Music Group in two separate transactions. The deals, rumored for several weeks, were said to be close to closing and were shopped by Dre’s longtime attorney Peter Paterno of King, Holmes, Paterno & Soriano. The news was first reported by Billboard.

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Representatives for the company, Dre, Universal and Shamrock declined or did not immediately respond Variety‘s requests for comment, but a source close to Dre confirmed the report and said the final sale price will likely be below the $250 million asking price, but well above $200 million.

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The assets would include artist royalties from two of his solo albums and his share of NWA artist royalties; his producer royalties; and the writer’s share of his unpublished song catalog, which may include songs from his 1993 blockbuster album “The Chronic.” According to Billboard sources, that share comprises 75% to 90% of the package’s revenue and is likely acquired by Shamrock (which owns some Taylor Swift master recordings), while UMG acquires the remaining 10% to 25%.

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Included in the UMG acquisition is the master recording of “The Chronic,” which is scheduled to return to Death Row Entertainment’s Dre (which was recently acquired last year by Dre’s protégé Snoop Dogg) in August of this year; his share in an Aftermath/Interscope joint venture with the Top Dawg label for Kendrick Lamar releases through that deal; and possibly some other assets. It does not include his ownership interest in the Aftermath label, which he co-owns from his old label house, UMG’s Interscope Records.

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Variety will have more on this situation as it develops.

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