As Thailand’s music and entertainment sectors continue to experience rapid growth, Universal Music Group (UMG) has acquired a 70 per cent stake in the catalog from RS Music – a Bangkok-based company that has a stake in a number prominent regional acts.
RS Group (SET: RS) recently announced its collaboration with UMG in a formal notice and regulatory disclosure. One of the conglomerate’s many businesses – the company also owns RS Mall (“a multi-platform shopping destination for holistic health and wellness”) and initial public offering a credit and collections company called Chase Asia last year – RS Music is expected to go public since April by 2024.
And according to managers, despite Universal Music’s initially mentioned acquisition of 70 percent of RS Music’s intellectual property, those plans are still in effect. As detailed in the highlighted regulatory disclosure, the approximately US$46 million (1.61 billion baht) transaction, which is expected to close by the third quarter, will see RS sell what appears to be all of its music assets to a new one company transfers.
This includes the company’s master and publisher catalog (which extends to about 10,000 titles per managing director), artist contracts (but excluding management contracts), and more. the submission shows that UMG is ready to take the 70 percent stake in this forthcoming entity. Meanwhile, RS could receive “additional consideration” of nearly $5 million (173.8 million baht) from UMG, the document said, “with terms to be mutually agreed upon by the parties.”
RS Group CEO Surachai Chetchotisak elaborated on the agreement in a statement, emphasizing the union’s perceived potential to increase the presence of Thai music on the world stage.
“We are excited to partner with UMG to expand opportunities for Thai music in the international market,” said the RS boss, whose music division announced in April that it had sales of around US$20 million for 2023. Dollar aims “It will also play an important role in promoting Thailand’s soft power and will be the first springboard for future projects and ventures.” This joint venture will create opportunities within the music industry and further strengthen RS Music.”
And in a subsequent press release, the RS CEO expressed a desire to advance collaborations with international artists – while also reiterating that this and related efforts “will lead our music business under RS Music to the Thai one in 2024, as expected.” to go to the stock market”.
About a year ago, Universal Music signed an expanded partnership deal with Hype Train Group in Thailand – where well-established local players continue to have a significant domestic presence – and Live Nation took over TERO’s concert and entertainment division. Thai rapper and entertainer Khanngoen Nuanual recently acquired a majority stake in film distributor M Pictures.