Warner Music Group has signed a deal to acquire the recorded music catalog and artist roster of Gold Typhoon Group, one of the largest independent music companies in Greater China. The deal was formally announced Monday (April 28) and is due to be completed by the summer. Financial terms were not disclosed.
Gold Typhoon Group was founded in 2003 and has a catalog of over 600,000 Chinese and international songs, including repertoire from Taiwanese artists David Tao, multi-million selling pop vocalist Ah Mei and boy-band Lollipop, as well as mainland Chinese artists Xu Wei and Malaysian artist and producer Eric Moo. The company’s current roster is led by Mandarin star Khalil Fong and Cantonese female singer Kay Tse, as well as breaking artists such as Tia Yuan and Sean Zhang. According to industry sources, Gold Typhoon Group represents approximately 3.5% of the Chinese market.
In January 2011, Gold Typhoon Group, which has 100-plus staff and offices in Beijing, Shanghai, Guangzhou, Chengdu, Taipei and Hong Kong, was acquired for an undisclosed sum by Pacific Global Management Asia (PGMA), part of the Luxembourg-based investment house Pacific Capital.
Warner Music’s deal to purchase Gold Typhoon’s catalog and artist roster is the major’s latest high-profile acquisition in emerging markets. Most recently, December 2013 saw the launch of Warner Music South Africa, following a buyout of Gallo Records’ share of the joint venture Warner Music Gallo Africa. Last year additionally saw Warner Music Group acquire Russia’s leading independent music company, Gala Records, to establish Warner Music Russia. Warner Music Group’s acquisition of the Parlophone Label Group in 2013 also grew the label’s affiliate partners in Eastern Europe.
Warner Music’s existing operations in the Greater China region include offices in Beijing, Hong Kong and Taipei (Taiwan).
“Gold Typhoon’s unique and wide-ranging repertoire makes it a jewel in East Asia’s musical culture,” said Lachie Rutherford, president, Warner Music Asia Pacific, in a statement. “This landmark deal will complement our existing strengths and expand Warner Music Group’s potent presence in these rapidly evolving and flourishing music markets.”
Warner Recorded Music president of international Stu Bergen added: “This important acquisition is a great example of our strategy of growing our global footprint through investment in creative excellence and diversity. We are committed to unlocking huge potential for our artists in regions such as Greater China, Hong Kong and Taiwan, where widespread adoption of new technology is meeting with unprecedented local demand for music.”