The Weeknd Secures $1 Billion Catalog Deal with Lyric
The Weeknd, whose real name is Abel Tesfaye, has entered into an innovative business venture with Lyric Capital Group. This unique partnership involves Lyric investing in the artist’s music catalog from its inception through 2025. While the financial specifics remain undisclosed, industry reports suggest the deal could be valued at up to $1 billion.
The Weeknd’s Groundbreaking Deal with Lyric Capital
The agreement is not a conventional catalog sale, as The Weeknd maintains creative control over his music rights and remains a shareholder in the company. According to a representative, the partnership was designed to enhance creativity and allow the artist to execute his vision fully.
Details of the Venture
- The deal encompasses The Weeknd’s music masters and publishing rights through 2025.
- Future music releases are not included in this agreement.
- His existing publishing catalog will continue to be managed by Universal Music Publishing Group.
Though the full financial details remain unclear, reports earlier this year indicated a valuation based on net label and publisher shares of approximately $55 million, suggesting a significant multiple in the range of 18.2 times.
The Importance of Artist Control
This partnership is cited as setting a new standard in artist equity and control within the music industry. “Lyric created a first-of-its-kind structure,” said The Weeknd’s representative. The innovative agreement includes a unique ‘Royalty Backed Note’ to enhance the artist-friendly nature of this partnership.
The Weeknd’s Ongoing Success
With over 120 million monthly listeners on Spotify, The Weeknd is among the most celebrated recording artists globally. His recent “After Hours ‘Til Dawn” tour has surpassed the $1 billion mark, making him a record holder for the highest-grossing tour by a solo male artist.
Further Industry Implications
This deal not only underscores The Weeknd’s standing in the industry but also highlights the evolution of how artists can manage their assets and legacies. “This collaboration has the potential to change how artists perceive their music and future endeavors,” noted Lyric’s co-managing partner, Rich Garzia.
For further developments regarding this landmark deal, stay tuned to El-Balad.
