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- Scooter Braun’s Ithaca Holdings has acquired Scott Borchetta’s Big Machine Label Group for $300 million, in a move that’s given him control over Taylor Swift’s master recordings.
- The purchase was backed by the Carlyle Group, an investment firm that has been a minor investor in Ithaca since 2017, according to the Wall Street Journal.
- The firm has had thousands of investors, including influential Washington political figures and, more controversially, the family of Osama Bin Laden.
- The Bin Laden family liquidated its holdings with the Carlyle Group in October 2001, just over a month after 9/11 attacks, which intelligence officials believe were financed by Osama Bin Laden’s terror group, al-Qaeda.
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Scooter Braun’s purchase of Scott Borchetta’s Big Machine Label Group was backed by a private investment company that took millions of dollars from Osama Bin Laden’s family.
Earlier this week, Braun’s Ithaca Holdings made a $300 million deal to acquire Big Machine Label Group, including a back catalog of Taylor Swift’s master recordings that she left behind in 2018. The move caused uproar in the music industry, with Swift slamming the purchase. Justin Bieber, who’s managed by Braun’s Schoolboy Records, accused Swift of “defacing” Braun’s character.
The purchase was backed by the Carlyle Group, according to the Wall Street Journal. The private equity firm has been a minor investor in Ithaca since 2017.
But long before that, the firm has had thousands of investors, including influential Washington political figures and, more controversially, the Bin Laden family.
Osama Bin Laden’s brother was reportedly at a Carlyle business conference on the day of the September 11 attacks, according to The Washington Post. A day earlier, former President George HW Bush, another Carlyle investor, was also at the conference.
The Bin Laden family liquidated its holdings with the Carlyle Group in October 2001, just over a month after the 9/11 attacks, which intelligence officials believe were financed by Osama Bin Laden’s terror group, al-Qaeda.
The Bin Laden family first started a financial relationship with Carlyle in 1994, committing $2 million to a buyout fund, The Times reported. As part of the liquidation, Carlyle bought the Bin Laden family’s stake in the company.
”This wasn’t done because anyone thought they did anything wrong,” a Carlyle executive told the New York Times at the time. ”We didn’t do it with relish or great glee. We felt and they felt that it was something that was causing more attention than it deserved, so we both decided it made sense, given the circumstances, to liquidate the position.”
Bin Laden’s family disowned the al-Qaeda leader in the 1990s and condemned the 2001 terrorist attacks.
The Carlyle Group became a focus of Michael Moore’s “Fahrenheit 9/11,” where the director claimed the group had been politically infiltrated. In 2005, the investment firm said that the documentary had no effect on its business.
The firm has provided investment to a number of companies throughout the years, including Vogue International, Dunkin’ Donuts. And Dr. Pepper, according to its portfolio.
As part of its role in the Big Machine Label Group acquisition, the Carlyle Group will make another investment in Ithaca, bringing the combined holding company value to more than $800 million, according to the Wall Street Journal.
Taylor Swift slammed the purchase, calling it an act of “incessant, manipulative bullying” relating back to her feud with Kim Kardashian and Kanye West.
Her post caused uproar in the music industry, with several artists rushing to takes sides.
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