After heavy speculation about a bidding war for his services, Drake appears to have struck a “mega deal” with Universal Music Group that could ultimately net him over $400 million. An official figure has not yet been announced. According to industry insiders, the deal will cover Drake’s recordings, publishing, merchandise and visual media projects.
In a report by Diversity, News of the agreement was confirmed by UMG chairman Sir Lucian Grainge on Tuesday (May 3) and is the latest in a series of deals surrounding “expanded portfolios,” which give the label a share of multiple revenue streams tied to an artist. The deal is said to be similar to Drake’s collaborator and friend The Weeknd’s deal with UMG, signed in late 2021.
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The OVO boss’s new deal, described by one insider as “LeBron-sized,” is by far the most lucrative in music industry history, which is to be expected given Drake’s long-standing dominance of the Billboard charts and elsewhere in the market. With his music bringing in an estimated $50 million in annual revenue and the rapper himself previously hinting at receiving a huge $360 million advance for “Lemon Pepper Freestyle,” Drake’s partnership with Universal should have been a foregone conclusion. But it’s also a testament to his cult status and the enduring strength of hip-hop.
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