Warner Music Group acquired a stake in Rotana Audio and Video, a subsidiary of the Rotana Media Group and owned by Saudi Prince Al-Waleed bin Talal, in a deal that gives the company the right to distribute the production of the largest Arab singers outside the Middle East region.
According to Arabianet, Warner Music did not disclose the value of the deal or its details, but a source close to the deal told Bloomberg that Warner had acquired a minority stake in the company. Rotana, according to the company's valuation at $ 200 million.
Alwaleed invested about $ 270 million in Deezer in 2018, a deal that made Rotana Audio's content available on the Al-Aghani app.
while the deal is relatively small for the global music business in terms of financial considerations, the agreement will combine one of the biggest music powers in the West with the music giant in the Middle East. Record music sales are booming. It will 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 of Directors, as it is affiliated to the Rotana Media Group, which is based in the Saudi capital, Riyadh, and its branches are distributed in Jeddah, Dubai, Kuwait, Beirut, and Cairo each.
global recorded music revenue has grown strongly in recent years, buoyed by the popularity of streaming services like Spotify and Apple Music, as broadcasting has saved the industry from more than a decade of decline at the hands of Online piracy and the collapse of CD sales.
About 72% of Saudis use social media, while in the United States the percentage is 71%, according to German online database Statista.
