October 12 (Businesshala) – A consortium led by private equity giant KKR & Co is close to a deal to buy the rights to music by pop icon Lorde and The Weeknd for $1.1 billion, the Financial Times reported on Tuesday, according to people familiar with the talks. Said citing.
The investor group, which will take a majority stake, and the family office of a former Goldman Sachs partner, Stephen Handel, is closing in on a deal to buy the catalog from music company Cobalt, whose roster of artists also includes Paul McCartney and Stevie. Knicks, the FT report said.
KKR declined to comment, while Cobalt did not immediately respond to a Businesshala request for comment.
The deal for the catalog could be announced this week, the report said.
It comes on the heels of another major private equity investment in the music industry when Blackstone Inc. partnered with an advisory firm owned by music executive Mercuridis to buy music rights and record songs. (reut.rs/2YKtOZp)
As part of the partnership, Blackstone said Tuesday it will deploy about $1 billion and also take an ownership stake in Hipgnosis Song Management, an advisor to London-listed music catalog investor Hipgnosis Songs Fund. (Reporting by Chhavi Mehta in Bengaluru; Editing by Maju Samuel)