Why Big Loud Have Sold a $200million Stake in Morgan Wallen's Catalogue

As the news broke that Big Loud has sold a $200million minority stake in Morgan Wallen's catalogue, fans have been questioning why such a move would have been made.

Particularly after the extremely high-profile feud between Taylor Swift and Scooter Braun over the control of her master recordings, the issue of who ‘owns’ an artist's music has become a contentious issue of late. Hearing that Big Loud, Morgan Wallen's longstanding label, is seemingly relinquishing some of the discography of their most valuable artist can therefore appear to be a perplexing strategy.

However, this sale actually makes a lot of sense for both Big Loud and Morgan Wallen. Aside from the significant influx of cash for the label, which can be directed towards propelling their newer artists towards the heights that Wallen has achieved in recent years, it also strengthens Big Loud's ties with Universal Music Group.

The $200million stake in Morgan Wallen's catalogue has been sold to Chord Music, and last year, UMG acquired a 25.8% stake in Chord for $240 million. UMG also distributes Wallen's music and other Big Loud releases through their Republic imprint.

For added context, The Hollywood Reporter, speaking to an anonymous insider source, contextualises, “Aligning with Chord, in which UMG already holds an equity stake, further fortifies Big Loud’s position in the Universal system, with the added benefit of contributing to the industry leader’s market share. Big Loud principles, meanwhile, can invest in new talent while operating as if nothing has changed”.

Elsewhere, a Big Loud rep reveals, “Big Loud has sold a minority stake in Morgan Wallen’s master recording catalog to Chord Music Partners, as part of a strategic investment to expand the label’s global footprint and fuel long-term artist development”.

They go on, “The deal was executed with the support of the internal Big Loud team, alongside partners at Chord Music, Republic Records and [Universal Music Group], PLUS Capital, Eisner, Loeb & Loeb, DLA Piper, Dickinson Wright and Armanino”.

For Chord Music, of course, it's a no-brainer, with Morgan Wallen establishing his immense popularity and possessing a slew of hits that will remain fruitful for years to come.

The value of the Tennessee megastar's discography is highlighted by the fact that this minority stake was reportedly sold for a whopping $200million, when, as a point of comparison, three members of the renowned rock band, Genesis, sold their 50-year-long catalogue and the majority of their solo recordings for $300 million.

Morgan Wallen is currently gearing up to release his highly anticipated fourth studio album, I'm the Problem, on May 16th. The record consists of 37 songs, including blockbuster collaborations with Post Malone, Tate McRae, HARDY, ERNEST and Eric Church.

The ‘Thought You Should Know’ singer-songwriter released the latest instalment of his Shop Sessions YouTube series this week, with Morgan Wallen delivering a stellar, intimate performance of ‘I'm a Little Crazy’, the closing track from I'm the Problem.

For more on Morgan Wallen, see below: