© Reuters.
SANTA MONICA, Calif. – Common Music Group (AS:) has acquired a 25.8% stake in Chord Music Companions for $240 million, a deal that values the corporate at $1.85 billion. Chord, initially a collaboration between KKR and Dundee Companions, boasts a catalog of over 60,000 music copyrights from globally acknowledged artists.
The transaction sees KKR promoting its majority stake in Chord to Dundee Companions and its investor consortium, with UMG retaining a minority curiosity. UMG’s international community will administer Chord’s publishing rights and distribute recordings, aiming to leverage its experience to handle and develop the catalog.
Sir Lucian Grainge, UMG’s Chairman and CEO, expressed enthusiasm for the partnership with Dundee Companions, highlighting their shared imaginative and prescient for fostering iconic music and creating long-term development. He emphasised the capabilities of UMG’s groups to maximise the industrial and inventive worth of Chord’s property.
Boyd Muir, UMG’s Government Vice President, CFO, and President of Operations, outlined the strategic advantages of the partnership, together with environment friendly future catalog acquisitions and a versatile strategy to development alternatives.
Sam Hendel of Dundee Companions echoed the sentiment, emphasizing the brand new enterprise as a premier platform for music funding and an enduring house for artists’ legacies.
The transaction, upon completion, will go away Dundee and its consortium with a 74.2% possession of Chord, with UMG holding the remaining 25.8%. The partnership aligns UMG and Dundee of their long-term technique for buying and managing important music-rights catalogs.
UMG’s acquisition is a part of its broader mission to form tradition by artistry and innovation, whereas Dundee Companions continues its custom of selling arts and tradition, with investments on the intersection of music and expertise.
The deal was facilitated by numerous monetary and authorized advisors, together with Goldman Sachs, Kirkland & Ellis LLP, and Freshfields for UMG, with Fifth Third Financial institution offering dedicated financing to Dundee and UMG. Chord Music Companions obtained advisory providers from The Raine Group and authorized counsel from Manatt, Phelps and Phillips, LLP, whereas KKR was suggested by Latham & Watkins LLP.
The data on this article relies on a press launch assertion
This text was generated with the assist of AI and reviewed by an editor. For extra data see our T&C.