Sony and GIC to invest up to $3.8 billion in music catalogues: Sources

Los Angeles – Sony Group and Singapore’s sovereign wealth fund GIC are forming a joint venture to acquire music copyrights, with plans to invest between US$2 billion and US$3 billion (S$3.8 billion) in the project, according to people with knowledge of the matter.

Sony’s music division, one of the world’s largest, will manage the acquired catalogues, handling distribution to streaming services and licensing older songs for use in films and commercials, the sources said.

GIC is providing capital and investment expertise.

The joint venture will provide the Japanese entertainment company with funds to build out its portfolio of songs. Through the deal, all three of the world’s largest music companies have set up partnerships with financiers to help them acquire more rights to songs without having to provide all of the money themselves.

Universal Music Group announced a similar deal with Dundee Partners in early 2024, while Warner Music Group set up a partnership with Bain Capital in 2025.

Sony has been buying high-profile music catalogues, often with third-party financing. It acquired the songs of Bruce Springsteen, as well as those of the bands Queen and Pink Floyd.

The value of music copyrights has soared over the last decade because of the growth of paid streaming. Investors have also been drawn to music because it is a stable asset during uncertain economic times.

Sony and GIC plan to seek high-quality, marquee music assets across a range of genres. GIC has been investing in the music industry for nearly a decade. Sony Bank, a division of the consumer electronics giant, is also participating in this investment partnership.

Sony owns the second-largest record label group and is the world’s largest music publisher. Its labels release music from stars such as Harry Styles, Adele and Beyonce. It also distributes music for thousands of artists through The Orchard. BLOOMBERG