Friday, October 24, 2008

Sivers Sold CD Baby for 22 Million

Hey readers. I've been touring most of the fall, which is why I haven't been posting here too much. Will continue touring through November. After which, I'll get a bit of a break. At least, theoretically.

Anyway, for those interested.... Derek Sivers solo CD Baby for 22 million... but he didn't see the dime of the money, instead having the funds put directly into a trust that will go to musicians when he passes away...

Here's the text of the post where this is reported on Digital Music News....

"Derek Sivers earned $22 million from the sale of CD Baby, according to an interview surfacing Thursday. Sivers sold the company to Disc Makers in early August after a seven-month closing process. "I knew that was about the right price," Sivers disclosed to Venture Voice. "We actually didn't bicker or negotiate over the price one bit, I just set a price and they said okay."

According to Sivers, CD Baby pulled annual, top-line revenues of roughly $100 million at the beginning of this year, a fourfold increase over a three-year period. The company employed 85 people at that point, though Sivers rarely visited the office. "I really started letting go in 2002," Sivers shared.

The acquisition sounds like a windfall, though Sivers actually channeled the money into a charitable trust. Sivers is now drawing interest from his Independent Musician's Charitable Trust, though the principal goes to artist-related causes when Sivers passes away. Currently, Sivers is investing his efforts in Muckwork, a company that aims to offer an "army of assistants" to musicians struggling to promote and distribute themselves. "

And for more details on the trust, which is interesting, see
http://blog.wired.com/music/2008/10/derek-sivers-so.html

David Nevue
The Music Biz Academy
http://www.musicbizacademy.com
http://www.davidnevue.com
http://www.twitter.com/davidnevue

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