SANTA MONICA, Calif. - Universal Music Group (AS:UMG) has acquired a 25.8% stake in Chord Music Partners for $240 million, a deal that values the company at $1.85 billion. Chord, initially a collaboration between KKR and Dundee Partners, boasts a catalog of over 60,000 music copyrights from globally recognized artists.
The transaction sees KKR selling its majority stake in Chord to Dundee Partners and its investor consortium, with UMG retaining a minority interest. UMG's global network will administer Chord's publishing rights and distribute recordings, aiming to leverage its expertise to manage and grow the catalog.
Sir Lucian Grainge, UMG's Chairman and CEO, expressed enthusiasm for the partnership with Dundee Partners, highlighting their shared vision for fostering iconic music and creating long-term growth. He emphasized the capabilities of UMG's teams to maximize the commercial and creative value of Chord's assets.
Boyd Muir, UMG's Executive Vice President, CFO, and President of Operations, outlined the strategic benefits of the partnership, including efficient future catalog acquisitions and a flexible approach to growth opportunities.
Sam Hendel of Dundee Partners echoed the sentiment, emphasizing the new venture as a premier platform for music investment and a lasting home for artists' legacies.
The transaction, upon completion, will leave Dundee and its consortium with a 74.2% ownership of Chord, with UMG holding the remaining 25.8%. The partnership aligns UMG and Dundee in their long-term strategy for acquiring and managing significant music-rights catalogs.
UMG's acquisition is part of its broader mission to shape culture through artistry and innovation, while Dundee Partners continues its tradition of promoting arts and culture, with investments at the intersection of music and technology.
The deal was facilitated by various financial and legal advisors, including Goldman Sachs, Kirkland & Ellis LLP, and Freshfields for UMG, with Fifth Third Bank providing committed financing to Dundee and UMG. Chord Music Partners received advisory services from The Raine Group and legal counsel from Manatt, Phelps and Phillips, LLP, while KKR was advised by Latham & Watkins LLP.
The information in this article is based on a press release statement
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