Sony, Singapore’s GIC to invest US$2 billion in music catalogues

[LOS ANGELES] Sony Music Group and Singapore’s GIC sovereign wealth fund are forming a joint venture to acquire music copyrights, with plans to invest US$2 billion to US$3 billion in the project.

The music division of Sony Group, one of the world’s largest record companies, will manage the acquired catalogues, handling distribution to streaming services and licensing older songs for use in films and commercials, the parties said on Wednesday (Jan 28). GIC is providing capital and investment expertise.

“As a long-term investor, GIC seeks to be a creative and flexible capital partner to strategic industry leaders like Sony,” Girish Karira, head of the sovereign fund’s integrated strategies group, said in a statement.

The joint venture will give the Japanese entertainment company funds to build up its portfolio of songs. With the deal, all three of the world’s largest music companies have set up partnerships with financiers to help them acquire more rights to songs without having to provide all of the money themselves.

Universal Music Group announced a similar deal with Dundee Partners in early 2024, while Warner Music Group set up a partnership with Bain Capital last year.

“Partnering with GIC brings together long-term capital and Sony Music Group’s operational capabilities to acquire and manage premier catalogues, creating new opportunities for artists’ and songwriters’ music globally,” Kevin Kelleher, Sony Music’s chief operating officer, said in the statement.

Sony has been buying high-profile music catalogues, often with third-party financing. It acquired the songs of Bruce Springsteen, as well as the bands Queen and Pink Floyd.

The value of music copyrights soared over the last decade thanks to the growth of paid streaming. Investors have also been drawn to music because it is a stable asset during uncertain economic times.

Sony and GIC plan to seek high-quality, marquee music assets across a range of genres. GIC has been investing in the music industry for nearly a decade. Sony Bank, a division of the consumer electronics giant, is also participating in this investment partnership.

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Sony owns the second-largest record label group and is the largest music publisher in the world. Its labels release music from stars such as Harry Styles, Adele and Beyonce. It also distributes music for thousands of artists through the Orchard. BLOOMBERG