Synopsis
Tips Music promoters are seeking to sell a minority stake to fund film content investments and strengthen music rights control. Previous talks with Universal Music Group stalled due to differing stake and governance demands. The company aims to raise capital from financial investors to boost its film business.Listen to this article in summarized format
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The Taurani family, which holds 64.15% in Tips Music, had earlier held discussions with Universal Music Group for a potential stake sale, but the talks are stalled and a deal is unlikely to materialise due to the latter’s demand for a significant stake, sources said.
“The Taurani family wants to sell a minority stake to raise financial investment, whereas Universal was seeking a strategic investment of about 23-24% with additional voting rights at par with the promoters,” one of them said.
Tips Music’s market capitalisation stood at Rs 8,248.97 crore at Monday’s closing price of Rs 645.30 on the BSE.
The Tauranis may now engage with financial investors, the person said. “They want to raise cash to invest in their film business.”
Kumar Taurani, chairman and managing director of Tips Music, and Devraj Sanyal, chairman and CEO for India and South Asia at Universal Music Group, declined to comment.
While valuation was not a sticking point in their discussions, Universal’s demand for enhanced governance rights proved a hurdle, a second person said.
Global music labels typically invest as strategic partners, seeking operational influence rather than acting as passive financial backers.
The development comes amid a broader shift in the music industry, with labels increasingly investing in film production to secure music-linked intellectual property and diversify beyond streaming-led revenues.
Recent deals underscore this trend. Universal Music Group acquired a 30% stake in Excel Entertainment, founded by Farhan Akhtar and Ritesh Sidhwani, at an enterprise value of Rs 2,400 crore. Meanwhile, Saregama invested Rs 325 crore in Bhansali Productions for an initial minority stake of about 28%, with the option to raise it to 51% by 2030.
According to a Ficci-EY report, India’s music industry is projected to grow at a 9% compound annual growth rate (CAGR) to Rs 7,500 crore by 2028. The sector grew 10% in 2025, with digital licensing rising just 2% due to weaker YouTube yields, while OTT platforms, social media and live events drove growth. Labels’ other income rose 26% on expansion into events, talent management and branded content.
At the same time, the sector is seeing consolidation, with large labels acquiring stakes in independent and regional players as streaming consumption rises and the business shifts from an ad-led to a subscription-driven model.
Times Music has acquired Punjabi music label Catrack Entertainment, marking its third strategic deal after earlier buys of ARC Musicq and Symphony Recording Co, while also expanding its partnership with Primary Wave Music.
Tips Industries was demerged into Tips Music and Tips Films in 2021.
In the January-March quarter, Tips Music reported revenue of Rs 104 crore, up 33% year-on-year, while net profit nearly doubled to Rs 59 crore.
In its earnings presentation, the company highlighted four growth drivers: rising subscription revenues, increased monetisation of short-form content, stronger enforcement of public performance rights, and emerging royalties from artificial intelligence companies.
It also noted that Warner Music Group and Universal Music Group have been actively signing deals in the artificial intelligence space. Universal recently partnered with Nvidia to develop tools for music creation and discovery using its Music Flamingo model.
Separately, a Reuters report in April said billionaire investor Bill Ackman’s Pershing Square Capital Management has proposed a $64-billion takeover of Universal Music Group.
