Warner Music Group buys stake in Hungarian record label Magneoton
Warner Music Group has acquired a stake in Hungarian record label, Magneoton, while also extending its longstanding licensing agreement with the firm.
Financial terms of the stake purchase were not disclosed in a press release announcing the move on Thursday (June 22).
The collaboration also covers a new distribution deal and a joint plan to nurture local talent. Magneoton will continue serving as a licensee for WMGs international repertoire, WMG said.
The partnership between WMG and Magneoton extend back three decades. Initially established by former superstar artist László Pásztor and artist manager István Joós, Magneoton was acquired by WMG in 1993 and operated as Warner Music Hungary until 2004.
Following a management buyout, Magneoton continued its journey as a local independent label, eventually becoming Warner Music’s licensee in 2010.
Since then, Magneoton has expanded its business over the years, encompassing management services, concert organization, and digital music agency operations. The label has collaborated with local artists such as Majka, Curtis, DR BRS, Lotfi Begi, as well as emerging talents like bongor and Sisi, who have captivated the urban music scene.
“While Magneoton will continue to act as a licensee for our international repertoire, we’ll now also be working together to discover great Hungarian artists and take their music to the world.”
Izabela Ciszek-Podziemska, Warner Music South East Europe
Izabela Ciszek-Podziemska, General Manager, Warner Music South East Europe, said: “This latest phase in our relationship with Magneoton marks a significant return to Hungary by Warner Music. While Magneoton will continue to act as a licensee for our international repertoire, we’ll now also be working together to discover great Hungarian artists and take their music to the world.”
Magneoton General Manager Noemi Virag Csontos added: “Magneoton and Warner Music have a rich history of working together and producing incredible results for our acts. This deal highlights our commitment to breaking Hungarian artists internationally, while giving local fans unparalleled access to music from some of the world’s biggest stars.”
To mark their renewed agreement, Magneoton and WMG will release Heartbreak, a collaboration between Lotfi Begi and Cecilia Gault.
“Magneoton and Warner Music have a rich history of working together and producing incredible results for our acts. This deal highlights our commitment to breaking Hungarian artists internationally, while giving local fans unparalleled access to music from some of the world’s biggest stars.”
Noemi Virag Csontos, Magneoton
The two companies are also set to drop a track called Heaven by Stadiumx, Sam Martin, and Azahriah on Friday (June 23). Stadiumx is among the most streamed Hungarian acts of all time, delivering hits with the biggest EDM stars including David Guetta, Nicky Romero and Bob Sinclar. On Spotify, the duo has attracted nearly 468,000 monthly listeners to date.
Meanwhile, Azahriah is a local artist who has been making waves on the Hungarian music scene. With over 544,000 monthly listeners, the artist recently landed eight tracks on the local Top 10 Spotify chart.
The acquisition of a stake in Magneoton by Warner Music represents the latest expansion of the latter’s presence in Eastern Europe. It recently appointed Izabela Ciszek-Podziemska as General Manager of Warner Music South East Europe, and invested in Serbian record label Mascom Records and Polish promoter Big Idea, a partnership with Poland’s Step Records.
WMG also acquired Slovakia’s Opus Records, and collaborated with Czech Republic hip-hop label Mike Roft.
Music Business Worldwide