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“Warner Music Group” yesterday acquired a stake in “Rotana Audio and Visual”, a subsidiary of the Rotana Media Group and owned by Saudi Prince Al-Waleed bin Talal, in an agreement that gives the company the right to distribute the production of the greatest Arab singers outside the Middle East region.
Warner Music did not disclose the value of the deal or its details, but a source familiar with the deal told Bloomberg that Warner had acquired a minority stake in Rotana, according to the company’s valuation at 200 million. dollars.
Alwaleed invested around $ 270 million in Deezer in 2018, a deal that made content from the Rotana Audio company available on the Aghani app.
While the deal is relatively small for the global music industry in terms of financial considerations, the deal will bring together one of the West’s biggest music powers with the Middle Eastern music giant, at a moment when recorded music sales are booming. It would also give Warner direct access to the Middle East, which promises to have a young, relatively wealthy and internet savvy audience.
Rotana Audio and Visuals is owned by Prince Al-Waleed bin Talal, Chairman of the Board. It is affiliated with the Rotana Media Group, headquartered in Riyadh, the Saudi capital, and has branches in Jeddah, Dubai, Kuwait, Beirut and Cairo.
Global recorded music revenues have grown sharply in recent years, supported by the popularity of streaming services like Spotify and Apple Music, as broadcasting saved the industry from more than a decade of decline at the hands of online piracy. and the collapse in CD sales.
About 72% of Saudis use social media, while the percentage in the United States is 71%, according to the German online database Statista.
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