The Weeknd is apparently trying to secure $1 billion in financing by leveraging his music, and fans think that it may have something to do with a rebrand.
The “Blinding Lights” singer is having discussions about raising a whopping $1 billion of financing backed by some of his music rights, according to insiders and reported by Bloomberg.
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In one possible situation that Bloomberg reports is being discussed, the singer could use his stake in his music publishing rights and his share of the master recordings as collateral to secure the funds.
Half of the artists’ publishing rights are currently owned by Chord Music Partners, backed by Universal Music Group and Dundee Partners, according to private equity networking platform Private Equity Insights.
The talks are happening between The Weeknd and private equity firm Lyric Capital Group, which is based in New York City.
Eric Alper, a Toronto-based publicist and music industry expert, told Now Toronto that essentially, this is like using an asset to take out a loan.
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“Essentially, the investors would front him the money now, and in return, they would get paid through future earnings from his catalogue of music,” Alper explained. “It gives them immediate capital for investments and tours and businesses and part of his revenue stream.”
He explained that this allows the artist to utilize his shares without forfeiting ownership of the work entirely.
“The Weeknd has continued to expand what is possible in pop music, and continues to do so on the business end,” Alper shared.
FANS WEIGH IN
Some fans have taken to social media to share their thoughts on the news, with many speculating on if the timing has anything to do with an upcoming rebrand. The Weeknd has previously shared that he plans to retire his stage name, but continue to make music.
“He mentioned twice already that new album, new tour, new everything. This is about generational wealth + scaling up, not cashing out,” one fan said on X. “He’s doing it to guarantee generational wealth + creative freedom. Most artists sell their catalog and lose control. He’s leveraging his instead. That’s why Abel will walk into his new era with an empire, not just an album.”
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“What is he raising 1B for? And what’s the stuff at the end about him retiring his name but still making music? So he’s just cashing out this “brand” of Abel?” another question on Reddit.
“I wonder realistically what his catalog is worth over a period of time. How much wealth can he/will he generate from the weeknd, and is it over a billion? If he retires the weeknd as a moniker, and begins a new project, this is kinda interesting.”
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source nowtoronto.com ’
