# Beggars Group Takes 51% Control of XL… | Dynamoi News

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Description: The deal ends a decades-long 50/50 joint venture structure, consolidating Adele’s catalog onto the indie giant

Dynamoi News Beggars Group Takes 51% Control of XL Recordings in Strategic Shift The deal ends a decades-long 50/50 joint venture structure, consolidating Adele’s catalog onto the indie giant's balance sheet for the first time. Published December 17, 2025 Editor Trevor Loucks Editorial policy → The era of the "loose confederation" at Beggars Group is officially over. In a move that fundamentally redefines the architecture of the global independent sector, the British powerhouse has acquired majority control of its crown jewel, XL Recordings. According to new UK filings, Beggars Group paid a surprisingly modest sum to tip its ownership stake from a 50/50 split to 51% , ending a decades-long joint venture structure with label head Richard Russell. This is more than a bookkeeping adjustment; it represents a hardening of the "Super-Indie" model against private equity and major label encroachments. The £2.6M tipping point For years, XL Recordings operated as a semi-autonomous fiefdom, sharing profits and power equally between Beggars infrastructure and Russell’s A&R vision. The new filings reveal that in October 2024, Beggars paid just £2.6 million ($3.3 million) to acquire the decisive 1% equity needed to take control. Key insight: The deal reclassifies XL from a joint venture to a subsidiary , allowing Beggars to fully consolidate the label's assets—including the majority of Adele’s discography—directly onto its group balance sheet. Why the math matters By moving XL into the subsidiary column, Beggars Group instantly bolsters its financial valuation. The book value of XL’s net assets is listed at £210.7 million ($269 million) , with nearly $40 million in cash on hand. Previously, under the 50/50 structure, these assets sat slightly removed from the parent company's direct financial reporting. Consolidating them gives Beggars massive leverage for credit facilities, acquisitions, and technology investments without needing outside capital. It signals that Chairman Martin Mills is prioritizing asset density and corporate solidity over the flexible partnerships of the past. A cascading consolidation The restructuring triggered a domino effect within the group’s holdings. Immediately following the transaction, XL Recordings utilized its own cash reserves to secure its sub-labels. XL paid £200,000 ($255,000) to increase its stake in Young Recordings (formerly Young Turks) to 51% . This secures long-term rights to another tier of critical catalog, including The xx, Sampha, and FKA Twigs. The result is a unified chain of command: Beggars controls XL, and XL controls Young. 2024 financial scorecard The structural pivot comes amid a banner year for the group. While many labels struggled with supply chain inflation, Beggars posted a 49% surge in operating profit to $13.4 million (£10.5m) for the 2024 calendar year. The drivers: Revenue Growth: Total revenue hit $140.4 million , up 6.5% year-over-year. Physical Strength: High-margin vinyl sales continue to anchor the bottom line, supported by campaigns for Fontaines D.C. and Peggy Gou . Catalog Efficiency: The reversion of US rights for Adele’s first three albums ( 19 , 21 , 25 ) continues to pay dividends, as XL no longer splits that revenue with Sony Music. The estate planning angle The timing of this consolidation aligns with broader moves regarding the company's future. Control was recently transferred to the MM Settlement Trust , a vehicle connected to Martin Mills. By locking in 51% ownership of its most valuable assets now, Beggars is "future-proofing" the company. It ensures that the group remains a singular, defensible entity for the next generation, making it significantly harder for components to be picked off individually by majors or investment firms. Related stories Sony Music and GIC Close In on $4B Blackstone Catalog Deal May 9, 2026 TikTok Launches US Joint Venture With 80% American Ownership January 24, 2026 Rostrum Pacific Exits ADA for Direct Spotify and TikTok Deals January 15, 2026 Create Music Group Backs Nettwerk Buyout With $300M Injection February 6, 2026 Latest News May 30, 2026 Warner Music Settles $24M Copyright Suit With Crumbl May 29, 2026 UMG Board Unanimously Rejects Bill Ackman’s $64B Takeover Bid May 29, 2026 Spotify Rolls Out $10.99 Basic Tier Amid $150M Royalties Dispute May 28, 2026 Sony Weaponizes 2024 AI Opt-Out in 61,000-Track Suno Lawsuit May 27, 2026 33 States Demand Ticketmaster Divestiture After Antitrust Verdict May 26, 2026 Spotify Shares Surge 16% on UMG Deal for Paid AI Remix Tools See pricing →