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Baker McKenzie Advises RS Group on Divestment of Music Catalog Assets to Universal Music Group
Baker McKenzie Thailand has successfully represented RS Public Company Limited and RS Music Co., Ltd. ("RS Group") on a pioneer transaction in Thailand's music industry, that is, the divestment of RS Group's entire music catalog to Universal Music Group and Universal Music (Thailand) Limited ("UMG Group").
The Firm, having represented RS Group in the sale of its interests in its music catalog assets and joint venture with UMG Group in 2023, has just completed the sale of RS Group's additional stakes to UMG Group, with a total value of USD 65 million.
Led by Partner Nuchaya Timrat, the team advised the client from the start of the transaction, with an initial sale, followed by the additional stake. Other key team members include Partner Naris Asavathongkul and Associates Thitapa Haritaworn, Wichaya Chatsikharinthorn, Kantaphon Lotangchanintra, and Tonpan Pokeaw.
The RS Group's music catalog is the second largest in Thailand, comprising more than 10,000 master recordings and 6,000 copyright ownerships, publishing rights, and licenses dating back as early as 1981. This strategic partnership is in line with RS Public Company Limited's business plan. Under the joint venture, RS Group would retain rights to 'offline' distribution channels in the music catalog while Universal Music Group would gain rights to worldwide digital distribution channels.
This strategic partnership will also allow RS Group to gain significant capital to further expand its music business and explore new high-potential businesses. After proceeding with the restructuring of the music business, the client is preparing to list on the Stock Exchange of Thailand in 2027.
This transaction marks an exciting new era for entertainment M&A in the Thai market, which is one of the fastest-growing music markets in Asia. The emergence and rising popularity of digital streaming services presents opportunities to further grow the music business, such as developing new music and content formats to creating value from intellectual property in the long term, while also gaining an additional source of capital to expand into other potential businesses in the future.