Warner Music Group Corp. (NASDAQ:WMG) shares gained 2.6% Tuesday following news that it has partnered with TikTok in a “wide-ranging, first-of-its-kind” deal.
The partnership is said to benefit artists and songwriters, and TikTok’s billion-plus users, licensing the repertoire of Warner Recorded Music and Warner Chappell Music to TikTok, TikTok Music, CapCut, and TikTok’s Commercial Music Library.
The multi-year, multi-product deal will expand the level of cooperation between the two companies, with WMG stating it will create new revenue, marketing, and insight opportunities for WMG’s artists and songwriters.
Furthermore, the companies agreed to a licensing deal for TikTok Music, the subscription streaming service that the social media company recently launched in Indonesia and Brazil.
“Through this expanded and significantly improved partnership for both companies, we can jointly deliver greater value to WMG’s artists and songwriters and TikTok’s users,” said Robert Kyncl, WMG’s CEO.
