Earlier this week, we first announced that superstar DJ David Guetta has finalized a $ 100 million partnership with Warner Music Group. This unique deal – along with existing IP assets and a potentially lucrative upcoming real estate deal – pushes David Guetta’s net worth into the 9-figure stratosphere.
David Guetta has been an ultra-popular DJ, producer and songwriter for over 20 years. But his net worth suddenly rises, thanks to a recently signed recording deal with Warner Music Group. The deal, estimated to be worth at least $ 100 million, involved a major sale of recording catalogs and participation in future royalties.
Warner Music did not disclose the financial terms of the contract, but the Financial Time reported that the deal was worth a total of $ 100 million. This valuation covers both the purchase of the considerable catalog of recorded music from Guetta, as well as a share in future recordings and projects.
Jean-Charles Carré, manager of Guetta, said several parties besides WMG were looking to buy the intellectual property. “A lot of people have approached us to express their interest in David’s catalog,” Carré explained. “We have decided to continue our partnership with Warner because they have a knowledge and passion for David’s music, with a global team constantly working to place it in new contexts.”
So how does this affect David Guetta’s wider net worth? In 2015, Forbes pegged the DJ’s annual income at $ 37 million, and several net worth estimates hit the $ 75-80 million mark by 2018. Forbes cited several high-priced residences in Las Vegas and Ibiza in their calculations, as well as headlining. spots at events like Coachella. A long string of hits, including those involving Nicki Minaj, Lady Gaga, Britney Spears and others, also generate considerable income streams, with self-published hits producing massive returns as well.
Based on more recent estimates, WMG’s David Guetta’s $ 100 million lump sum payment theoretically pushes his net worth beyond $ 175 million. But Guetta’s decision to transfer ownership of the intellectual property to Warner means the DJ is no longer reaping the full royalty income from his catalog – although he turns a relatively illiquid asset into an immediately realized gain. In all likelihood, Guetta has sacrificed some long-term profit valuation for the immediate lump sum payment, with Warner betting he can generate a more substantial long-term return.
Guetta still enjoys significant income streams from other fields including publishing, concerts and future collaborations and projects. Since future projects are, by definition, in the future, they are not calculated in the DJ’s current net worth. But Guetta certainly has the potential to generate solid income streams in the future.
Beyond that, Guetta is also getting into expensive real estate. As recently as this morning, Digital Music News reported that the French DJ is putting his Miami condo on the market for a list price of $ 14 million. Given the recent spikes in the housing market, it’s highly likely that Guetta will pick up that demand – and a $ 4.5 million gain made after just a few years.