Universal Music Group Acquires Stake in Chord Music Partners for $240 Million
In a significant move, Universal Music Group (UMG), the world’s largest music company, has acquired a substantial stake in Chord Music Partners, an intellectual property catalogue, for a whopping $240 million. This latest development comes after the sale of a majority stake (74.2%) to Dundee Partners, with UMG now taking on a 25.8% ownership of Chord.
Chord Music Partners, founded in 2021 by KKR and Dundee Partners, boasts an impressive portfolio that includes chart-topping artists such as The Weeknd, Lorde, and John Legend. It’s no wonder that UMG values Chord at an impressive $1.85 billion under this minority stake acquisition.
This deal marks the beginning of a new long-term strategic partnership between Universal Music Group and Dundee Partners. The primary objective of this collaboration is to actively manage Chord’s rights through UMG’s extensive global network, with a future focus on acquiring additional catalogs through Chord.
As part of the agreement, Universal Music Publishing Group will handle Chord’s music publishing rights, while UMG’s Virgin Music Group will oversee its recorded music. This partnership aims to streamline operations and optimize the management of Chord’s vast music library.
Universal Music Group’s continued efforts to expand its influence and strengthen its position as a key player in the global music industry are highlighted by this acquisition. With an extensive roster of talented artists and a robust network, UMG is well-positioned to leverage Chord Music Partners’ portfolio and further solidify its dominance in the market.
The future looks promising for both Universal Music Group and Chord Music Partners as they forge ahead with their strategic partnership. As they navigate the dynamic music landscape, we can expect to see exciting developments and collaborations in the coming months.
Disclaimer: This article is based on sources deemed reliable, but the accuracy and completeness of the information cannot be guaranteed.
Analyst comment
Positive news. Universal Music Group’s acquisition of a stake in Chord Music Partners for $240 million strengthens its position in the global music industry. This strategic partnership allows UMG to actively manage Chord’s rights and expand their music library, enhancing their dominance in the market. Expect exciting developments and collaborations in the future.
