Seventies mainstay Yes just found a new home. Warner Music Group (NASDAQ:WMG) picked up the rights to the entire British pop band’s catalog, which includes a wide range of titles recorded over a half-century or so of music. Investors’ reaction was largely nonplussed, as Warner Music Group shares closed down just 0.06% in Monday’s trading.
The acquisition covers an incredible volume of music. Not only does it include the 12 studio albums that ultimately sold over 30 million copies across that half-century of work, but it covers live recordings, compilations, and recorded music rights as well. Warner’s fourth-quarter results certainly made a few new acquisitions look worthwhile.
Meanwhile, the exact amount Warner Music Group spent for the catalog is largely undetermined despite multiple reports. However, estimates from Billboard note that the catalog generated a little over $3 million over the last three years, with Yes’ royalties coming in at nearly $1 million. In addition, the band owns several of its master recordings going back to 1991, but demand has been tepid at best. Ultimately, Billboard’s estimates suggest the combination of master rights and income streams should be worth about $20 million to $25 million.
Overall, analysts call Warner Music Group stock a Moderate Buy. Furthermore, thanks to its average price target of $37.07, the stock offers 4.28% upside potential.
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