Under the partnership, Khaled will serve as global creative consultant to Def Jam and UMG.
The company wants to end litigation claiming it deceived customers about "all-analog" records, but a battle over the settlement's fairness is already brewing.
On an earnings call, Kyncl addressed the future of both Warner and the business at large, commenting on AI, subscription streaming and TikTok.
Also this week: Utopia Music unloads ROSTR, Codiciado signs with Virgin Music U.S. Latin and more.
The rapper is set to drop a new album in May.
WMG's net income was off 34% compared to the year-ago quarter, which had an extra week.
The label that developed Migos, Lil Baby and others will now fall under HYBE America and the leadership of CEO Scooter Braun.
The deal values 7digital at a 114% premium over the prior day's closing price.
The company's robust publishing business helped offset a $4 million net loss related to one-off debt and the higher U.K. tax rate.
He's challenging an earlier ruling that said the rapper could be executed if convicted of murdering two former YNW associates.
