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.
