Grex Music2 Conference

Item 232: *ABBA*?!?!

Entered by md on Thu Feb 3 01:51:09 2000:

This is from http://www.eonline.com/  If anyone has heard
any further details, do tell.

"In perhaps the largest rejection in history, '70s Swedish 
pop group ABBA has turned down a $1 billion offer to 
reunite after 17 years. 

"'It's a hell of a lot of money to say no to, but we decided 
it wasn't for us,' Benny Andersson, ex-leader of the 
four-member group, told Swedish tabloid Aftonbladet today. 

"The staggering offer came from an American-British consortium 
that reportedly wanted the group to reunite for 100 concerts 
and cash in on a recent revival of several of their hits. 
(Currently, the teen band A-Teens has covered 'Mamma Mia' and 
'Gimme Gimme' and a musical based on several songs is a hit in 
London's West End.)"
22 responses total.

#1 of 22 by beeswing on Thu Feb 3 02:23:57 2000:

Abba came up twice in conversation today... weird.

We had all the 8-tracks, I had an Abba folder I took to school...



#2 of 22 by mcnally on Thu Feb 3 02:39:09 2000:

  That makes *no* sense.

  Each of those 100 concers would have to produce, on average, ten million
  dollars in order to even recoup the amount that the band would make, let
  alone make any money for the investors.

  Or to put it another way, if the band were able to clear $10 profit per
  fan, they'd have to perform for one hundred million fans to reach the
  break-even point for the investors.

  Either the details of the offer have been completely screwed up by the
  reporter or the offer was bullshit to begin with, but there's no way ABBA,
  popular or talented as they may be, could be worth $1,000,000,000.


#3 of 22 by cmcgee on Thu Feb 3 03:12:23 2000:

Or the "million, billion" issue has been confused by the difference between
US "million, billion" conventions, and continental "million, billion"
conventions.

(In the US a million is, I think 1,000 times 1,000.  In Europe, a million is
100,000 times 1,000) Or some such thing.


#4 of 22 by mdw on Thu Feb 3 08:13:05 2000:

I believe million is actually the same in europe & england (at least).
It's billion where the difference begins - the british say "thousand
million" where we say billion, & the british "billion" is our trillion.
I may have this all wrong, but I think the table goes something like:
        sci     us              uk
        1e3     thousand        thousand
        1e6     million         million
        1e9     billion         thousand million
        1e12    trillion        billion
        1e15    quadrillion     thousand billion
        1e18    quintillion     trillion
In the rest of europe, the rules change per-language; in french, "mille"
is our thousand, and french "cent" is our "100".

Presuambly, the ABBA investors were also thinking of record, tv, and
radio deals.  How much money did madonna make on her last big world
tour?


#5 of 22 by mcnally on Thu Feb 3 08:47:49 2000:

  not even *close* to a billion dollars.

  let's assume that each fan buys a $50 concert ticket, a $20 video, 
  a $15 CD, and watches so much television and listens to so much radio
  that the promoters can get $20 in advertising, for a total revenue of
  $100 per ultra-fan and that all of that revenue is pure profit -- 
  assumptions which are clearly ludicrous.  You'd still need 10 *million*
  such ultra-fans to hit the break-even point.

  The numbers aren't remotely plausible..  Top-grossing musical acts
  like R.E.M., U2, etc, can pull in grosses that are in the multiple tens
  of millions of dollars on a packaged worldwide tour (including videos,
  t-shirts, CDs, concert tickets, pay-per-view, etc..) but a billion is
  so far from that that something is just wrong about the story in #0.




#6 of 22 by gypsi on Thu Feb 3 14:05:40 2000:

Well, some of them were married to each other, and the girls from Abba have
new husbands...or something along those lines.  Whatever.  Anyway, they said
it just wasn't for them.  

I would play 100 concerts in a band of my ex-boyfriends for a billion dollars.
I mean, really...  =)


#7 of 22 by johnnie on Thu Feb 3 14:58:58 2000:

Perhaps they're all so utterly wealthy already that there's nothing left 
to buy.  A person can use only so many mansions.


#8 of 22 by krj on Thu Feb 3 16:19:49 2000:

    ((( winter agora #115  <--->  music #232 )))


#9 of 22 by aruba on Thu Feb 3 17:46:01 2000:

the rumor, when Abba was popular, was that they were Sweden's second-largest
industry, right behind Volvo.  Or that they were ahead of Volvo, depending
on who was telling the rumor.


#10 of 22 by jor on Thu Feb 3 17:49:30 2000:

        I *just* heard this on the radio.

        The announcer seemd to be saying "billion",
        but he didn't articulate it clearly to differentiate
        from "million".

        We need Carl Sagan back.




#11 of 22 by scott on Thu Feb 3 17:59:45 2000:

Perhaps the offer really was for a billion, but ABBA members wisely did the
math and realized they probably wouldn't get paid what they were promised.


#12 of 22 by krj on Thu Feb 3 18:22:28 2000:

From the website of Abba's record company, cached on google:
   "ABBA were second only to Volvo as Sweden's biggest export 
    earners for several years..."


#13 of 22 by krj on Thu Feb 3 18:57:25 2000:

The British music magazine Q, on their web site, prints the story and 
says that the amount turned down was 630 million UK pounds, which is a 
billion US dollars in round numbers.


#14 of 22 by prp on Thu Feb 3 21:54:42 2000:

Maybe the offer was for 1,000,000,000 Krona.  That cuts it down to $100M.


#15 of 22 by mdw on Fri Feb 4 01:31:05 2000:

My impression was that Abba was really big at one point, and the
principals were pretty busy building an industrial empire based on the
profits.  I doubt they're hurting for money.  When I say "Really Big" -
I think they were bigger in europe than the Beatles ever were here.


#16 of 22 by krj on Fri Feb 4 04:04:25 2000:

prp's explanation makes sense; maybe we'll see a correction in the news 
media tomorrow.  I don't have at hand the web article I printed off which 
listed the top grossing concert tours of 1999, but my recollection was
that the Rolling Stones topped the list at $90+ million.  So $100 million
for ABBA would be plausible.


#17 of 22 by lumen on Fri Feb 4 05:24:15 2000:

resp:12 what doesn't help is a VH1 episode of "Where Are They Now?" 
featuring ABBA said precisely that, as well.  I'm assuming, however, 
that the record company website could be considered a fairly 
conservative source..


#18 of 22 by sno on Fri Feb 4 20:50:21 2000:

While I'm not expert on such deals, I have to imagine that the contract
offered was laced with contingencies and ownership rights.  Very likely,
ABBA members would have lost all ownership rights to royalties to past
and future performances, a la Michael Jackson owning a large library of
Beatle song royalties.  In return, a consortium of investors would be
able to do anything they like with the brand and products of ABBA.

Frankly, that's what I'd insist on if I was offering BILLIONS.



#19 of 22 by aaron on Fri Feb 4 23:10:47 2000:

From what I have read, ABBA members made about $300 million during their
careers. With anything approaching reasonable investment, since the early
1980's, they should be facing the choice of, "Do I want to settle for
having more money than I can reasonably spend, or do I want to have a lot
more money than I can reasonably spend?" Tough.


#20 of 22 by beeswing on Sat Feb 5 01:22:19 2000:

Yep. And the dark-haired woman has since married a German prince, so I 
doubt she's strapped for cash. I think the others have successful solo 
careers in Europe anyhoo.

Abba broke up because both couples (and that's what the band consisted 
of, two married couples) split up on very unfriendly terms. You 
wouldn't want to work/travel with/spend time with an ex you can't stand.



#21 of 22 by sspan on Sat Feb 5 05:56:21 2000:

Okay, here's my theory... Bill Gates is a big ABBA fan, and put up the billion
just so he could see them perform live again, and didn't care if there were
any profits from the tour. ABBA, being devout MAC users, of course turned it
down. Hey... it could happen.


#22 of 22 by swa on Wed Feb 16 05:30:21 2000:

Re 6: I'm trying to imagine a band of my ex-boyfriends now... kind of a
strange concept... :)


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