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“Ultimately, it is you, Shaky Nichols, who is on the hook for the full three hundred million. Right?”
“That’s what a personal guaranty means.”
“Yes. I can see you’re a smart businessman. And as a smart businessman, surely you did your homework before purchasing Imani’s master recordings.”
“No one spends three hundred million without due diligence, if that’s what you mean.”
“Naturally, you researched other acquisitions of master recordings.”
“Naturally.”
Jack retrieved a folded newspaper from his table, then resumed his place before the witness. “I’m looking at theFinancial Timesof London. The sale of Taylor Swift’s master recordings was quite a public affair. According to theTimes, her master recordings sold for two hundred fifty million dollars. You knew that, right?”
“I was made aware.”
“The article says her master recordings earned about fifteen million dollars a year. If my math is correct, the two-hundred-fifty-million-dollar price tag worked out to a multiple of about sixteen or seventeen times her annual earnings. Does that sound right?”
He paused to do the math in his head. “Roughly, yes.”
Jack put the newspaper aside, then pointed in the direction of his client. “Now look over there, Mr. Nichols. I see the singer Imani. Agreed?”
“Objection,” said Ellis.
“What’s the objection?” the judge asked.
“It’s just condescending,” said Ellis.
“I’ll rephrase,” said Jack. “When you look to the other side of the courtroom, you don’t see mega-star Taylor Swift sitting there, do you?”
“No, that’s definitely Imani.”
That drew a few muted chuckles from the handful of Shaky supporters in the audience.
Jack continued. “The fact is, Imani’s catalog earns less than half of Taylor Swift’s catalog. Am I right?”
“Roughly.”
“But you paid three hundred million dollars for Imani’s master recordings—fifty million more than the buyer paid for Taylor Swift’s catalog.”
“Every deal is different.”
“Taylor Swift’s catalog went for sixteen times annual revenues. You purchased Imani’s master recordings at a multiple of more thanfortytimes earnings.”
“Like I said, different deals are different.”
“But business metrics are business metrics,” said Jack.
“I don’t understand the question.”
“Isn’t it true, Mr. Nichols, that on a multiple-of-earnings basis, the three hundred million dollars you paid for Imani’s catalog is more thananyonehaseverpaid for an artist’s master recordings?”
Shaky shifted uncomfortably in his chair. “It could be.”
“The truth is, you overpaid.”
“I wouldn’t say that.”
“Can you name one person in the industry who would tell me you didn’t overpay? Just one.”
