Rap star and music executive Jay Z is seeking new investors for his recorded-music business at Roc Nation, according to a report.
Jay Z is reportedly seeking new investors for his recorded-music business at Roc Nation.
The 47-year-old rap star signed a 10-year deal with Live Nation in 2008 for $150 million, but with that agreement close to expiring, the music mogul has now started sounding out other industry figures about taking a stake in the business.
Under the terms of their agreement, Jay Z and Live Nation can either sell their stake in Roc Nation to the other party or buy the company outright.
Live Nation, for its part, hopes to continue its touring deal with Jay Z, but is withdrawing its backing for the recorded-music side of the business.
An insider told the New York Post newspaper’s Page Six column: ”Jay’s 360 deal with Live Nation is not being extended. Live Nation had bought into the artists’ rights and recorded music, but they are not extending any of those relationships. Live Nation is not in the business of buying recorded music any more.”
Roc Nation boasts a star-studded list of recording artists, including Jay, Rihanna, Meek Mill, and Shakira. But Live Nation is only keen to extend its touring agreement.
Of Live Nation, a source explained: ”They have a long-standing touring relationship with Jay, which is lucrative. It is believed Live Nation wants it to continue for many years.”
The music mogul and Desiree Perez, a top executive at Roc Nation, recently met with Sir Lucian Grainge, the chairman and CEO of Universal Music Group (UMG), prompting speculation that UMG could acquire a stake in Roc Nation.
If that were to happen, Jay would be able to throw even more resources behind his Tidal streaming service, which is currently competing against the likes of Apple Music and Spotify for a greater share of the market.
A UMG insider said: ”Our partnership is pretty significant as it is. Jay Z is phenomenal, and it would be great to get further into business with him.”
But the same source added: ”There has not been a discussion about the fact that the Roc Nation’s deal with Live Nation is coming up.”