As briefly mentioned on Friday, independent digital rights aggregator The Orchard has bought US independent TVT Records which, as much previously reported, went into bankruptcy earlier this year. Reports suggest The Orchard bid $6.5 million to buy the indie's assets, $1.5 million more than finance outfit Zwirn, a creditor of TVT who was known to be bidding, reportedly with the support of TVT founder Steve Gottlieb.
The deal will require court approval before being finalised, but assuming it goes ahead will give the digital rights company ownership of all of TVT's recordings catalogue, and its current artist contracts and distribution infrastructure. The indie label's stake in its sister publishing company, which Gottlieb has held onto, is not part of the deal.
Confirming the purchase, The Orchard chief Greg Scholl said in a statement on Friday: "Along with a great catalogue of chart-topping music, TVT has a formidable artist roster, with major hip-hop talents and a phenomenal pipeline of developing artists. We look forward to working with these artists, and where it makes sense, in conjunction with other Orchard clients and partners, to support their artistic vision and maximize their commercial potential".
Despite reports of his involvement in a rival bid, Gottlieb said he welcomed The Orchard's purchase, telling reporters: "After 23 years and 25 plus gold and platinum releases, I am delighted to see TVT's catalogue and roster move to a company so deeply engaged in developing the digital future of the music business. My energies will now focus on the continued growth of TVT Music as a premier music publisher, as well as following on with my consulting and co-investing with VC's in early stage internet ventures".
TVT's roster includes Pitbull and Lil Jon, though some artists were trying to get out of their deals with the indie as it went into financial meltdown. Whether any such artist back tracking will continue now the new owners have been confirmed remains to be seen.