In a bold financial maneuver that may reshape the value of artistic catalogs, superstar The Weeknd is reportedly in discussions to raise US $1 billion in financing using his music rights as collateral. Unlike traditional catalog sales—which hand over ownership in exchange for upfront cash—this structured deal would preserve his control while unlocking significant liquidity.
At just 35, Abel “The Weeknd” Tesfaye is pursuing financial flexibility without jeopardizing his long-term legacy.
Deal Structure & Its Significance
According to reports from sources such as Bloomberg, The Weeknd aims to access this financing through Lyric Capital Group, a New York-based firm specializing in royalty-backed financing. The proposed breakdown includes:
- $500 million in senior debt – lowest risk and highest repayment priority;
- $250 million in junior debt – higher risk, higher yield;
- $250 million in equity – granting investors upside potential connected to the catalog’s future earnings.
This structure resembles a financial “mortgage” on his catalog: he keeps ownership of masters and publishing while pledging royalty income—which remains steady from hits like “Blinding Lights”, “Starboy”, and “Can’t Feel My Face”—as repayment.
Why It Matters: A New Blueprint for Artist Financing
- Control Meets Capital
Rather than liquidating assets, The Weeknd retains ownership and creative control—an increasingly attractive model for artists in their prime.
- Institutionalization of Music as an Asset
This move underscores how music catalogs are transitioning into institutional-grade assets. Investors view them as stable, inflation-resilient income streams, similar to infrastructure investments. 
- Data-Driven Valuation
Streaming platforms, social metrics, and licensing analytics now inform catalog valuations—justifying billions in raised capital. For example, Royalty Exchange has seen a 40% transaction increase in music assets in 2025, underscoring investor appetite.
- Setting a Precedent
Should this deal move forward, it would eclipse previous massive catalog sales—such as Sony’s $600 million investment for half of Michael Jackson’s catalog—and set a new standard for financing in the music industry.
David Bowie pioneered this concept in 1997 with “Bowie Bonds,” raising $55 million using royalties from his pre-1990 catalog—an early model of intellectual property securitization. The Weeknd’s deal is, in essence, a vastly amplified version of this idea.
Recent years have been marked by blockbuster catalog sales:
- Sony’s $600 million for Michael Jackson’s rights (valuing half the catalog at $1.2 billion)
- Sony’s $400 million acquisition of Pink Floyd’s recordings
- Sony’s $1.27 billion purchase of Queen’s catalog
- Concord’s $850 million bond issuance, plus Hipgnosis’s $1.5 billion securitization, among others
- Royalty Securitization Market Surge
Between 2020 and 2024, over $8 billion was issued in music royalty securitizations—highlighting the maturation and scale of the music-as-asset market.
Risks & Considerations
- Valuation Uncertainty
Forecasting future royalty streams is complex; sudden shifts in popularity or licensing trends can affect returns.
- Overleveraging Concerns
Heavy debt levels tied to an artist’s lifetime’s work could be risky if future revenue dips unexpectedly. 
- Regulatory and Catalog Diversification
Markets and trends—like those driven by AI-generated music or changing platform dynamics—can influence long-term viability. Diversification across genres and revenue sources is key.   
The Weeknd’s potential $1 billion financing deal—if finalized—would do more than provide capital; it would redefine how artists capitalize on their work. This move reinforces the trend of treating music sequences as institutional assets and demonstrates how creative control and financial strategy can align. Whether leveraged for expanding into film, fashion, or his own production ventures, The Weeknd’s approach suggests a future where artists can retain both ownership and agility. And in doing so, he may have just rewritten the playbook for music industry financing.
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