Concord’s acquisition of Daddy Yankee’s music catalog is a major milestone in the Latin music industry. This deal, which includes chart-topping hits like “Gasolina,” “Con Calma,” and Daddy Yankee’s contributions as a featured artist on “Despacito,” adds substantial value to Concord’s expansive collection of music publishing and recording assets. While the exact purchase price wasn’t disclosed, reports indicate the catalog was part of a larger deal valued at around $217.3 million.

Though Daddy Yankee won’t directly benefit from this sale, as he had sold this portion of his catalog earlier to an undisclosed fund, he still retains part of his publishing catalog, administered by Sony Music Publishing and Spirit Music in the U.S. His works remain highly profitable, with over 346,000 album consumption units so far in 2023.

Concord’s approach to catalog acquisition focuses on long-term investment, aiming to preserve the legacy of artists while generating value for stakeholders. The company, primarily owned by Michigan State Retirement Systems, is well known for its extensive collection of influential songs, including works by John Fogerty and Phil Collins. With the addition of Daddy Yankee’s catalog, Concord strengthens its position in the Latin music space, which is supported by its Latin labels like Fania Records and Musart Records.

By issuing asset-backed securities (ABS) to finance acquisitions, Concord secures low-interest, long-term funding, allowing it to strategically grow its catalog. This type of financing has allowed the company to make significant acquisitions in recent years, including Daddy Yankee’s works, further establishing itself as a dominant player in the global music industry.