Warner Music Group Corp. and the family of Frank Sinatra have formed a joint venture to manage global licensing of music, film and merchandise involving the late entertainer's work, name and likeness, the company said.
Financial terms of the deal were not disclosed Wednesday. The 50-50 partnership was dubbed Frank Sinatra Enterprises.
Among other things, the venture will manage content from more than 50 albums by the singer originally released on Warner's Reprise label.
The company is particularly interested in mining revenue from online and other new media.
Executives at Warner's Rhino Entertainment unit will operate the venture along with a representative of the Sinatra family, the company said.
The deal came as New York-based Warner and other major record companies are increasingly seeking alternative sources of revenue amid a precipitous decline in album sales in recent years.
Record labels now look for artist deals that go beyond record sales and involve a piece of merchandising, touring and other revenue sources.
Sinatra's ties to Warner date back to the 1950s, when he and Warner Bros. co-launched the Reprise label.
In 1963, Warner Bros. bought out Sinatra's stake in the label, with Sinatra recovering ownership of his master recordings.
Since then, Warner has paid Sinatra or his estate for the rights to issue albums based on his master recordings.
Under terms of the joint venture, Warner gains a 50 percent stake in Sinatra's masters.