Irenic Capital bids up to $11 per share for Reservoir Media

An activist investor already holding nearly 10% of Reservoir Media just lobbed a takeover bid valuing the indie music company at north of a billion dollars.

Irenic Capital floats a Reservoir Media buyout

• Irenic Capital Management proposed $10 to $11 per share in cash.
• That range values the Reservoir between $1.1 and $1.2 billion with debt.
• Reservoir's board is currently evaluating the unsolicited offer.
• Irenic holds roughly 9.2% of the company's equity already.

Family control creates a massive structural hurdle

• Wesbild Inc. controls about 44% of Reservoir's total equity.
• Reservoir CEO Golnar Khosrowshahi's father runs Wesbild directly.
• Richmond Hill Investments sits on another 21% stake.
• Any deal needs Wesbild's blessing to realistically proceed.

Irenic has been agitating for over a year

• A public push for a full strategic review started in September 2024.
• Irenic's February SEC filing telegraphed a possible take-private move.
• The fund's previous activist campaigns often ended in target sales.
• Co-founder Adam Katz previously ran money at Elliott Management.

Reservoir's catalog and financials look solid

• Over 150,000 copyrights and 36,000 masters fill the portfolio.
• Joni Mitchell, Miles Davis, and Sheryl Crow headline that catalog.
• Q4 revenue hit $45.6 million, climbing 8% year over year.
• Gladys Knight and T.I. signed fresh catalog deals last quarter.