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Shamrock Capital: Pricing the Masters of Taylor Swift
schillm@darden.virginia.edu Case F-2050 / Published July 28, 2023 / 21 pages.
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Product Overview

This case examines the 2020 pricing decision for the master recordings of Taylor Swift’s first six albums in consideration of a sale of the recordings by music executive Scooter Braun to Shamrock Capital (Shamrock), an investment company owned by the Roy E. Disney family. Swift, the most listened-to musician in the world, had expressed displeasure with Braun’s ownership of her masters and a desire to own the recordings herself—even threatening to rerecord new versions of the master recordings. Inez Reynolds, an analyst at Shamrock, has been tasked with estimating the value of the masters and recommending how to advise the partners at Shamrock regarding a bid to Braun. The case provides a context for introducing students to firm valuation using discounted-cash-flow (DCF), market multiples, and the perpetuity model for terminal value estimation. The case is intended to provide a bridge between project valuation and firm valuation in a corporate finance course. This case is designed to be taught at Darden in the core finance curriculum as an introduction to firm valuation.



Learning Objectives

This case is designed to introduce the principles of firm valuation and includes opportunities for the instructor to explore any of the following teaching objectives: (1) Introduce firm valuation techniques based on a simple DCF model or market multiples. (2) Stimulate an appreciation and understanding of the perpetuity model for estimating terminal value. (3) Estimate the cost of capital using industry comparables. (4) Build intuition about the relationship between firm growth, operating profitability, and value creation.


  • Videos List

  • Overview

    This case examines the 2020 pricing decision for the master recordings of Taylor Swift’s first six albums in consideration of a sale of the recordings by music executive Scooter Braun to Shamrock Capital (Shamrock), an investment company owned by the Roy E. Disney family. Swift, the most listened-to musician in the world, had expressed displeasure with Braun’s ownership of her masters and a desire to own the recordings herself—even threatening to rerecord new versions of the master recordings. Inez Reynolds, an analyst at Shamrock, has been tasked with estimating the value of the masters and recommending how to advise the partners at Shamrock regarding a bid to Braun. The case provides a context for introducing students to firm valuation using discounted-cash-flow (DCF), market multiples, and the perpetuity model for terminal value estimation. The case is intended to provide a bridge between project valuation and firm valuation in a corporate finance course. This case is designed to be taught at Darden in the core finance curriculum as an introduction to firm valuation.

  • Learning Objectives

    Learning Objectives

    This case is designed to introduce the principles of firm valuation and includes opportunities for the instructor to explore any of the following teaching objectives: (1) Introduce firm valuation techniques based on a simple DCF model or market multiples. (2) Stimulate an appreciation and understanding of the perpetuity model for estimating terminal value. (3) Estimate the cost of capital using industry comparables. (4) Build intuition about the relationship between firm growth, operating profitability, and value creation.