©Reuters. The Universal Music Group logo is seen in this illustration taken May 3, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – Universal Music Group (AS:) said on Tuesday it will buy a 25.8% stake in Chord Music Partners for $240 million in a deal that will see investment firm KKR exit the music catalog owner’s equity .
KKR will sell its majority stake to a consortium led by Dundee Partners, which will now own 74.2% of Chord, while UMG will hold the remaining 25.8%, the world’s largest music label said in a statement.
UMG added that it will enter into a long-term partnership with Dundee Partners to manage the rights to Chord and to purchase additional music rights in the future.
“By combining a world-class financial acquisition vehicle with the world’s leading music company, we are creating both a premier platform for music investment and a permanent home for the legacy of the world’s most important artists and their iconic cultural works.” , said Sam Hendel , co-founder managing director of Chord and Dundee Partners, in the UMG statement.
Chord’s catalog includes music from The Weeknd, David Guetta and John Legend, and the deal values it at S$1.85 billion, UMG said in the statement.