Activist funding fund Irenic Capital Administration reportedly made an unsolicited takeover bid for Reservoir Media, the Nasdaq-listed unbiased music firm.
That’s in accordance with a report from Bloomberg, citing individuals aware of the matter, which stated the bid, submitted in February, values Reservoir at between $1.1 billion and $1.2 billion, together with debt, at a per-share value of $10 to $11.
Irenic is amongst Reservoir’s largest shareholders, with a stake of roughly 9.2%, in accordance with a current SEC submitting.
Reservoir’s shares jumped as a lot as 15% on Thursday (February 26) following the report.
In keeping with Bloomberg, Irenic is exploring financing choices for a possible deal, together with discussions with non-public credit score companies about mortgage constructions that may be backed by Reservoir’s tune catalog.
Bloomberg famous that “it’s not clear if Reservoir is concerned with promoting”.
Any deal, nonetheless, would probably require the assist of Wesbild Inc, which holds roughly 44% of Reservoir’s fairness. Wesbild, as famous by Bloomberg, is a agency managed by the daddy of Reservoir CEO Golnar Khosrowshahi.
Non-public fairness agency Richmond Hill Investments additionally holds a big stake in Reservoir, proudly owning roughly 21% of the corporate’s fairness.
Neither Irenic nor Reservoir offered remark to Bloomberg.
Irenic’s reported bid marks an escalation within the fund’s activist marketing campaign round Reservoir, which has been taking part in out for over a yr.
As MBW reported in September 2024, Irenic publicly referred to as on Reservoir to undertake a “full strategic overview of all options to maximise shareholder worth” and to kind a particular committee of its board to supervise that course of.
On the time, Reservoir responded by saying that it “values shareholder enter” whereas remaining “centered on executing our technique to drive worth”.
Inside an amended Schedule 13D submitting in early February, Irenic stated it could think about or suggest modifications to Reservoir’s possession, capital or company construction, together with a possible acquisition or take-private transaction.
Based in 2007, Reservoir went public on the Nasdaq in July 2021 by way of a SPAC merger with Roth CH Acquisition II Co.
Right this moment, Reservoir, in accordance with its web site, represents a portfolio of over 150,000 copyrights and roughly 36,000 grasp recordings, with titles spanning the catalogs of artists together with Joni Mitchell, John Denver, Sheryl Crow, and extra.
The corporate’s catalog has continued to develop in recent times by way of a string of acquisitions.
In September 2025, Reservoir acquired the catalog of jazz legend Miles Davis, and its most up-to-date quarterly outcomes – for the three months ended December 31, 2025 – noticed the corporate affirm new offers with Gladys Knight and T.I.
In that quarter, Reservoir generated $45.6 million in income, representing 8% YoY development, with adjusted EBITDA climbing 11% YoY to $19.2 million.
The Miles Davis acquisition adopted Reservoir’s enlargement into recorded music by the acquisition of Chrysalis Information in 2019 and the $100 million acquisition of Tommy Boy in 2021.
The New York Instances reported in September that Reservoir had spent $876 million on M&A (throughout catalogs and different firms) since its inception in 2007.
Manhattan-headquartered Irenic Capital was based by Adam Katz and Andy Dodge.
Katz, who serves as Chief Funding Officer, is a former portfolio supervisor at Elliott Administration; Dodge, Irenic’s Director of Analysis, beforehand held senior roles at Indaba Capital Administration.
In keeping with the agency’s web site, Irenic “invests in public firms and works collaboratively with agency management” with the goal of manufacturing “enhancements in working and monetary efficiency that create long-term worth”. In follow, a number of of its activist campaigns have culminated within the sale of the goal firms.
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