The Weeknd in talks for landmark $1 billion music catalogue deal

August 26, 2025 – Radio 854 Music News

Radio 854 News: The Weeknd Negotiates Groundbreaking $1 Billion Music-Catalog Financing

Toronto-born superstar The Weeknd (Abel Tesfaye) is reportedly in advanced talks to secure a $1 billion financing deal using his extensive music catalog as collateral—without actually selling a single song. The proposed structure, set up by Lyric Capital Group, would include:

• $500 million in senior debt (low risk, priority repayment)

• $250 million in junior debt (higher-risk, higher return)

• $250 million in equity, giving investors a stake in future royalty earnings

This innovative approach mirrors David Bowie’s famous “Bowie Bonds” from the late 1990s—but on a vastly larger scale. Bowie used his future royalties as collateral to raise $55 million while retaining ownership of his catalog. The Weeknd’s deal, by comparison, could usher in a new era for artist-controlled financing in the music industry.

Why the Deal Matters

• Ownership Still Intact
  Unlike iconic artists who sold catalogs—such as Springsteen, Dylan, and Bieber—The Weeknd is seeking liquidity while retaining ownership and control over his music.

• Valuable and Predictable Assets
  With over 110 million monthly listeners on Spotify, and blockbuster hits like “Blinding Lights” and “Starboy”, his catalog offers highly stable, data-backed cash flows attractive to institutional investors.

• A New Financing Framework
  This deal could establish a model for how music royalties evolve as an asset class—highlighting streaming data, sync licensing, and strategic financing options for artists and equity firms.

What’s Next?

• If finalized, this would likely become the largest music financing of its kind—eclipsing even Michael Jackson’s $600 million catalog sale in 2024.

• The deal’s layered structure may attract institutional investors such as family offices and private equity, signaling a new level of maturity in music asset financing.

• Several details are still emerging—from the specific terms to overall investor appetite—so the industry is watching closely to see how this unfolds.