The Weeknd and Lyric Capital Group have closed a deal forming a business venture together wherein Lyric has invested in the artist’s music catalog from inception through 2025, reps for the artist confirm to Variety. The deal sees the Weeknd — real name: Abel Tesfaye — and his team maintaining creative control over the catalog and remaining shareholders and owners in the company.
The rep notes that the joint venture is not a conventional catalog sale: “From the beginning of the meeting, it was clear to all at Lyric that Abel would not sell his catalog. He wanted to be more innovative and creative in the way we established a partnership. To that end, through this venture, we constructed and launched a new business model with Abel and his iconic catalog whereby Abel and his team have the freedom to execute their creative vision with the entirety of his rights, both publishing and masters. This unique catalog deal sets a new standard for artist equity and control.”
The venture applies only toward the Weeknd’s music masters and publishing through 2025 and does not include any future releases. The Weeknd continues his partnership with XO/Republic/Universal Music Group; his publishing catalog has been and continues to be administered by Universal Music Publishing Group.
The rep added that because the deal is not a conventional catalog purchase it is impossible to calculate a royalty multiple. However, Variety sources and reports in Billboard and Bloomberg earlier this year stated that the assets were going for at least $1 billion based on about $55 million in net label and net publisher share, which implies an 18.2 times multiple.
Reps for the Weeknd and Lyric declined to confirm any numbers to Variety, but if accurate, it is one of the biggest deals involving a single artist’s catalog in history, let alone for a contemporary artist — the only larger publicly acknowledged single-artist deal was Sony Music’s acquisition last year of the Queen catalog, valued at $1.27 billion.
With more than 120 million monthly listeners on Spotify alone, the Weeknd is one of the world’s most popular recording artists. His ongoing “After Hours ‘Til Dawn” tour recently passed the $1 billion mark, setting a record for a solo male artist.
“There is no ABS or securitization deal here,” the rep continued. “Lyric created a first-of-its-kind structure with direct input from Abel and his team, which includes a first-of-its-kind ‘Royalty Backed Note’ — produced by Lyric, ft. Partners Group — that drastically enhances the artist-friendly theme that underpins this partnership.”
“I couldn’t be more excited about what Lyric, Abel and team have created together,” said Ross Cameron, Lyric founding / co-managing partner. “From our first meeting, it was clear to me that we were sitting around the table with individuals that were going to change the way an artist thinks about his assets, music and legacy. The collaboration resulted in a first-of-its-kind partnership between an artist and Lyric, and we are beyond thrilled about this new venture.”
“Lyric strives to create artist-friendly structures and we believe this partnership demonstrates that at the highest level with the top artist in the world. I want to thank Abel and his team for putting their trust in Lyric,” says Rich Garzia, Lyric co-managing partner.
Half of the Weeknd’s publishing rights were already owned by Chord Music Partners, backed by Universal Music Group and Dundee Partners.
Lyric Capital invests in music royalties and also owns Spirit Music Group, which controls catalogs from Tim McGraw, Jason Aldean, Ingrid Michaelson and others.
Variety will have more on this news as it develops.
