Warner Bros. Discovery considers sale of its music catalog

Yahoo Finance media correspondent Allie Canal details Warner Bros. Discovery's plans in considering selling off portions of its music catalog.

Video Transcript

SEANA SMITH: Allie, we also want to talk about what's going on with Warner Brothers Discovery because they are looking into selling the rights to its music library. What can you tell us about that?

ALLIE CANAL: This would be a huge sale reportedly valued at more than $1 billion. We know Warner Brothers Discovery is at this point that they really want to deleverage their balance sheet. They're restructuring the business. Now the company is in the very early stages of weighing a potential sale. And any deal would come with certain caveats, like protecting usage for talent and also retaining sellability in order to use the music in Warner Brothers produced sequels and spinoffs.

But it's interesting when we talk about the selling of music rights because this is coming at a time when we've seen the value of a song and a record really balloon amid the streaming dominance that we've seen with companies like Spotify and Apple Music. We heard reports earlier this week that Dr. Dre is exploring the sale of certain elements of his publishing rights. That could be valued up to $250 million.

And you're seeing on your screen there, look at these amounts-- Stevie Nicks, Bob Dylan, Bruce Springsteen, a whopping $500 million deal. So this is something that for these artists, if they're looking to cash in and make a decent amount of money, this is the time to really do it.

SEANA SMITH: Wow, those are astonishing numbers there. It really shows just how valuable those libraries are. All right--