Drake Strikes Massive, Multi-Faceted Deal With Universal Music Group

variety.com:

Shirley Halperin Executive Editor, MusicYou wouldn’t know it from Sir Lucian Grainge’s tone in today’s Universal Music Group Q1 earnings call, but the chairman of the world’s biggest music company confirmed what had long been expected, but never to be announced: that Drake has entered into an expansive, multi-faceted deal with the company that encompasses recordings, publishing, merchandise and visual media projects.Such “expanded portfolios,” as Grainge noted in the call, spanning multiple creative lanes and revenue streams, also include the recently-announced extension and expansion of the Weeknd’s deal with UMG, which aligns him — like Drake — with Republic Records.Of course, the nagging question is: how big is Drake’s bag?

One insider describes the arrangement as “Lebron-sized,” without putting a number on it. Drake himself has seemingly referenced such a deal in the lyrics to “Lemon Pepper Freestyle” (off of his “Scary Hours 2” EP), which includes the lyric, “Three-sixty upfront, it all comes full circle” — or $360 million.

He also alludes to “owning masters” on “The Remorse,” the last track of “Certified Lover Boy.” And in Migos’ “Having Our Way,” Drake raps, “Billionaires talk to me different when they see my pay stub from Lucian Grainge,” name-checking the UMG chief executive.Since 2014, Drake has moved over 37 million album project units.

He’s also the first artist ever to surpass 50 billion combined streams on Spotify. To estimate that Drake’s music brings in $50 million annually is no stretch, say sources, and that the deal could be in the vicinity of $400 million or more isn’t either.For UMG, which is traded on the Euronext exchange, the deal helps solidify its catalog holdings.