Connect with us

Hi, what are you looking for?

News

Warner Music Buys Majority Stake in Tempo Catalog in $450 Million Deal

Warner Music Group is buying a controlling stake in Tempo Music Investment, a catalog company that owns rights to songs by Wiz Khalifa, Florida Georgia Line and Brett James, in a deal sources say is worth around $450 million.

WMG said it will acquire the stake from Tempo’s founder, Providence Equity Partners. Providence will remain a minority investor, according to a statement released on Thursday.

Warner’s first major catalog company acquisition in some time, Tempo’s catalog will add thousands of rights to Warner Chappell’s arsenal — some from songwriters it does not currently represent and some from writers it does. It is also the first big deal to come to fruition under chief executive Robert Kyncl‘s new development strategy.

“Tempo has assembled a thoughtful, well-rounded catalog and I’m excited to dig into new opportunities and unlock more value for these songs,” Guy Moot, co-chair and chief executive of Warner Chappell, said in a statement.

Kyncl has been signaling to the market for around a year that Warner was shopping for businesses and catalogs that could add to its market share and be easily incorporated into WMG’s overall company — so-called bolt-on acquisitions. Last June, WMG announced it hired one of Goldman Sachs’ top music investment bankers, Michael Ryan Southern, to serve as its executive vice president of corporate development, overseeing mergers and acquisitions.

“WMG and Tempo have a long-standing history and aligned interests in uplifting great music and catalogs,” Ryan Souther said in a statement. “This deal is … a good example of how our investment strategy is designed to build our scale and influence, while delivering additional revenue at a high margin.”

Launched in 2019 by Providence, Tempo also owns rights to songs by Mia Fieldes, Philip Lawrence and Malay.

Sources say Warner’s acquisition involves cash and the assumption of some debt.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

News

It’s time to drop the needle on another Executive Turntable, Billboard’s weekly compendium of promotions, hirings, exits and firings — and all things in between...

News

Playboi Carti’s MUSIC returns to No. 1 on the Billboard 200 albums chart (dated April 19), rising one spot, with 64,000 equivalent album units...

News

Ariana Grande’s 2024 album Eternal Sunshine returns to No. 1 on the Billboard 200 albums chart for its third total week atop the list,...

News

Playboi Carti’s MUSIC spends a second week at No. 1 on the Billboard 200 albums chart (dated April 5), after debuting atop the list...