Marilyn Monroe’s estate has agreed to sell the rights to the iconic celebrity to Authentic Brands Group LLC and NECA Inc. for a reported $30 million. The valuation was based upon a six times revenue multiple, derived from an estimate of roughly $5 million in annual revenues. The purchasers, with plans to grow the revenue streams, have already indicated expansion of Monroe into handbags, shoes, jewelry, lingerie, and perhaps even a reality television show.
In transactions such as these, the original rights owners (Marilyn Monroe’s estate in this case) must contemplate serious questions, including:
- Is the purchase price sufficient, as a present value, to replace the forgone future income streams?
- Are there alternatives, such as expanded licensing either in-house or by agency, which will increase the value to the estate while retaining the core rights assets?
- If the new owner of the rights over-commercializes the assets, what is the dilutive effect on the value of the other assets retained by the estate?
CONSOR answers these, and other important questions, for the estates of many celebrities and entertainment property owners. Valuation is critical in this transaction context, in the context of estate planning, and in preparing estate tax returns. CONSOR has provided valuation services related to rights of publicity for over 25 years.