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.
