Los Angeles-based B2B music licensing company, Songtradr, is set to acquire Bandcamp from Epic Games. Songtradr plans to maintain Bandcamp as a marketplace and music community with an “artist-first revenue share” model. Bandcamp currently serves over 5 million artists and labels. The acquisition will allow Songtradr to expand its capabilities and offer Bandcamp artists the opportunity to license their music for various media platforms, enhancing their earning potential. Epic Games will continue to partner with Songtradr and collaborate with Bandcamp on projects like Fortnite Radio while investing in Songtradr to support Bandcamp’s integration into the company.
Paul Wiltshire, the CEO of Songtradr, expressed excitement about the acquisition, highlighting the company’s commitment to supporting artists. Wiltshire mentioned that the acquisition will contribute to the growth of Songtradr’s services for artists through Bandcamp’s joining their team. Steve Allison, Vice President and General Manager at Epic Games, noted that Songtradr shares the same values as Epic and Bandcamp in ensuring fair compensation for artists. Allison believes that bringing Bandcamp to Songtradr will enable independent artists to connect more easily with creators and developers interested in licensing their music.
The news of Songtradr acquiring Bandcamp comes while Epic Games confirmed layoffs and the divestment of Bandcamp. Epic Games CEO Tim Sweeney explained that the layoffs were necessary due to financial sustainability concerns. Despite the layoffs, Epic Games remains confident in the prospects of the company, citing their strong game experiences, the best engine in the world, and their ambitious plans for the future. The severance package offered to employees includes extended healthcare coverage and accelerated stock option vesting.