Sony, Singapore's GIC eye $2-3B investment in music catalogues
What's the story
Sony Music Group and Singapore's sovereign wealth fund GIC Pte are coming together to acquire music copyrights. The partnership is set to invest between $2 billion and $3 billion into the project. Under this agreement, Sony's music division will oversee the acquired catalogues, managing their distribution on streaming platforms and licensing older songs for films and commercials.
Role of GIC
GIC to provide capital and investment expertise
GIC will be providing both capital and investment expertise to this joint venture. Girish Karira, head of GIC's integrated strategies group, said in a statement, "As a long-term investor, GIC seeks to be a creative and flexible capital partner to strategic industry leaders like Sony." This partnership will allow Sony to expand its portfolio of songs without having to bear all the costs alone.
Partnership benefits
Sony Music Group's COO highlighted the partnership's significance
Kevin Kelleher, Chief Operating Officer of Sony Music Group, emphasized the importance of this partnership. He said it would combine GIC's "long-term capital" with SMG's operational capabilities to acquire and manage premier catalogues. This, he added, would create new opportunities for artists and songwriters globally.
Past acquisitions
Sony's history of acquiring high-profile music catalogues
Sony has a history of acquiring high-profile music catalogues, often with the help of third-party financing. The company has purchased the songs of iconic artists such as Bruce Springsteen, Queen, and Pink Floyd. This trend has been fueled by the rising value of music copyrights over the past decade due to the growth of paid streaming services. Notably, Sony Bank, a unit of the consumer electronics giant, is also involved in this investment partnership.