Warner Music Group has acquired a stake in Magneoton, a leading Hungarian record label.
The partnership will also see the companies continue their longstanding licensing agreement, while adding a new distribution deal and a strategic plan to develop a joint local roster.
WMG and Magneoton have a relationship dating back 30 years. Magneoton was founded by former superstar artist László Pásztor and artist manager István Joós, and acquired by WMG in 1993. A management buyout saw Magneoton separate from WMG and operate as a local independent label, which went on to become Warner Music’s licensee from 2010.
In recent years, Magneoton has grown its business to also act as a management company, concert organiser and digital music agency. It has worked with local superstars such as Majka, Curtis, DR BRS and Lotfi Begi, as well as a new generation of talent, including Bongor and Sisi.
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.”
Noemi Virag Csontos, general manager of Magneoton, 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.”
The first release under the new agreement was Heartbreak, a collaboration between Lotfi Begi and Cecilia Gault.
Heaven, by Stadiumx, Sam Martin and Azahriah, is dropping this Friday (June 23). Stadiumx is one of the most streamed Hungarian acts of all time who has delivered hits with EDM stars including David Guetta, Nicky Romero and Bob Sinclar. Azahriah is a prominent local artist who recently landed eight tracks in the local Top 10 Spotify chart.
This new deal is Warner Music’s latest move in Eastern Europe, where it has grown its presence with the investment in Serbian record label Mascom Records and Polish promoter Big Idea, the partnership with Poland’s Step Records, the acquisition of Slovakia’s Opus Records, and a deal with leading Czech Republic hip-hop label Mike Roft.