Warner Music Group Acquires Controlling Stake in Tempo Music Investments
Warner Music Group (WMG) announced on Thursday that it has acquired a controlling stake in Tempo Music Investments, an investment platform for premium music rights, from Providence Equity Partners. The acquisition was led by CEO Robert Kyncl, marking a significant move in the music industry.
Financial terms of the acquisition were not disclosed. However, the companies stated that Providence Equity Partners will retain a minority stake in Tempo and will continue to collaborate with WMG in an advisory capacity. WMG’s investment in Tempo is expected to grow over time as more rights revert to the company, expanding the scope of WMG’s administration and distribution.
The partnership between WMG and Providence to launch Tempo in 2019 has been successful, combining Providence’s capital and investment expertise with WMG’s music industry knowledge and global network. Tempo has built a diverse portfolio focused on empowering artists and songwriters while delivering strong financial results through strategic investments and collaboration with creative talent.
Guy Moot, co-chair and CEO of Warner Chappell, expressed excitement about the acquisition of Tempo’s catalog, stating that it will expand Warner Chappell’s reach to new songwriters and unlock additional value for existing partners. The deal aligns with WMG’s investment strategy to enhance its scale and influence in the music industry while generating revenue at a high margin.
Michael Ryan-Southern, WMG’s executive vice president and chief corporate development officer, emphasized the shared vision between WMG and Tempo in uplifting great music and catalogs. He highlighted the deal as a natural fit that aligns with WMG’s growth strategy and revenue goals.
Michael Dominguez, senior managing director and chief investment officer at Providence, commended the Tempo team for building a high-quality catalog with top artists and songwriters. He expressed confidence in WMG’s ability to support Tempo’s growth and continue to enhance the value of its music rights.
Tempo has acquired music rights from key songwriters, including artists co-published by Warner Chappell such as Twenty One Pilots’ Tyler Joseph, Wiz Khalifa, Florida Georgia Line, Brett James, Shane McAnally, and Lukas Graham songwriters. Additionally, Tempo has secured rights from renowned songwriters, artists, and producers like the Jonas Brothers, Ben Rector, Korn, Mia Fieldes, Philip Lawrence, Malay, and Jeff Bhasker.
Moelis & Co. served as the financial advisor, and Weil, Gotshal & Manges LLP acted as the legal advisor to Tempo and Providence during the acquisition process. The collaboration between WMG, Tempo, and Providence signifies a strategic move to strengthen the music industry’s landscape and support the growth of artists and songwriters globally.