TikTok and Universal Music Group have reached a new licensing agreement, bringing an end to months of negotiations over artist compensation and song availability on the platform.

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The world’s largest music company announced that it has secured better compensation for its artists, including top names like Billie Eilish and Ariana Grande. They are now swiftly working with TikTok to reintroduce their music to the app.

This deal follows a period of disagreement after the expiration of their previous licensing contract in January. Universal withdrew its artists' content from TikTok in February due to the lack of an agreement. This move raised questions about TikTok's payment structure for Universal's extensive music catalog, which reaches over one billion social media users worldwide.

News of the deal boosted Universal Music shares in Amsterdam, signaling investor confidence in the agreement's outcome. Analysts at Citi noted the surprising nature of the deal, considering the tense negotiations that preceded it.

Earlier, Universal had accused TikTok of offering artists and songwriters significantly lower payment rates compared to other major social platforms. In response, TikTok accused Universal of prioritizing its own interests over those of its artists and songwriters.

With this new agreement in place, artists and fans can look forward to the return of Universal's music to TikTok, signaling a positive outcome for all parties involved.