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Business News/ Industry / Media/  Warner Music takes stake in Prince Al-Waleed’s Rotana Music
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Warner Music takes stake in Prince Al-Waleed’s Rotana Music

wsj

Deal expands presence of Len Blavatnik’s Warner in the growing Mideast market

Photo: Wikimedia CommonsPremium
Photo: Wikimedia Commons

Warner Music Group Corp. has agreed to buy a minority stake in Saudi billionaire Prince al-Waleed bin Talal’s Rotana Music, in a deal that would expand Warner’s presence in the Arab world while extending the global reach of Rotana’s roster of artists.

The companies made the announcement on Tuesday but declined to disclose the size of the stake or any other financial terms. The Wall Street Journal had previously reported that the companies were nearing a deal that would have valued Rotana at close to $200 million.

As part of the deal, ADA Worldwide, Warner’s label services division, has agreed to distribute Rotana releases outside of the Middle East and North Africa region.

The deal pairs up one of the music industry’s biggest players in the West, with a leading company in the Mideast when sales of recorded music are surging. It also gives Warner more access to the Middle East’s growing market of young, affluent and web-savvy consumers.

Warner is home to international stars including Ed Sheeran, Cardi B and Madonna. It owns labels including Atlantic, Elektra and its flagship Warner Records, as well as Warner Chappell Music, the world’s third-largest music publisher.

Rotana, meanwhile, is the Arab world’s largest record label with regional stars such as Syrian singer George Wassouf, Saudi artist Mohamad Abdo and Egyptian star Amr Diab. It is a subsidiary of Rotana Media Group, the entertainment conglomerate owned by Prince al-Waleed, a longtime investor in major Western companies, such as the Four Seasons hotel chain and Twitter Inc.

Rotana Music Chief Executive Salem Al Hendi said the deal was aligned with Saudi Arabia’s Vision 2030, Saudi Crown Prince Mohammed bin Salman’s plan to reshape the Saudi economy.

“The Middle East and North Africa regions are among the most culturally dynamic places in the world today, with burgeoning musical scenes and dramatic consumption growth," said Simon Robson, who leads Warner’s international recorded music business, in a statement.

Although the pandemic is hitting the entertainment and live event business in the Middle East, as it is elsewhere in the world, the music industry is better insulated from economic turmoil thanks to social media and streaming services, said Kacy Grine, who acted as financial adviser to Rotana Music on the Warner deal. Mr. Grine declined to comment on the deal itself.

This story has been published from a wire agency feed without modifications to the text.

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