Warner Music To Acquire David Guetta's Music Catalogue For Over $100M: FT - Warner Music Gr (NASDAQ:WMG)

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Warner Music Group Corp (NASDAQ:WMG) has agreed to acquire David Guetta’s recorded music catalog and struck a new record deal with the musician worth over $100 million, the Financial Times reports.
Warner will acquire Guetta’s two-decade-long back catalog of recorded music. The deal also includes an agreement for future recordings.
The companies did not elaborate on the financial terms of the transaction.
The 53-year-old French DJ is one of the younger musicians to capitalize on the soaring demand for music rights from private equity groups, record labels, and specialty funds like Hipgnosis.
Bob Dylan, Blondie, and Stevie Nicks were willing to sell their songwriting catalogs due to the lofty valuations and make up for the touring income loss due to the pandemic. The dealmaking frenzy has doubled the value of songwriting copyrights over the past five years.
Guetta has sold about 50 million albums during his career. His recordings are distinct from a song’s underlying composition. Most artists do not own their recorded music, which they typically concede to record labels.
The music sector has grown for six consecutive years due to the rising streaming business. It grew 7.4% in 2020 to $21.6 billion.
Paid-for streaming has increased the value of music rights and rejuvenated the older songs.
Warner Music went public in 2020, securing $1.9 billion for owner Leonard Blavatnik. The company’s shares have dropped 7% in 2021, valuing it at $17.6 billion.
Warner Music held $588 million in cash and equivalents as of Mar. 31, 2021.
Price action: WMG shares traded lower by 0.60% at $34.74 on the last check Thursday.
Image Courtesy: Wikimedia

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