Warner Music Group Acquires Control Share of Tempo Music Investments
Warner Music Group today (February 6) confirmed that it has acquired a controlling share in Tempo Music Investments, as well as Music Music.
The previous owner of Tempo, Providence Equity Partners, retains a minority share in Tempo as part of the transaction.
MBW first reported on Warner’s acquisition last month.
The latest deal values the acquisition at over 450 million dollars.
Moelis & Company served as the financial advisor, while Weil, Gotshal & Manges LLP provided legal counsel for both Tempo and Providence.
Details of the Tempo Catalog and Additional Acquisitions
The TEMPO catalog encompasses rights and income streams from songs recorded by popular artists such as Twenty One Pilots, Tyler Joseph, multi-platinum selling Wiz Khalifa, Florida Georgia Line, Grammy-winning artists like Brett James and Shein, as well as songwriters Lucas Graham, Stefan Forrest, Morten Pilgaard, Morten Ristorp Jensen, and Jarmey Daniels.
Interestingly, many of these individuals are also signed to Warner Chappell Music as songwriters.
Additionally, Tempo has acquired rights from artists including The Jonas Brothers, Ben Rector, and Korn, along with Grammy-winning songwriters/producers Philip Lawrence, Malay, and Jeff Bhausker.
The potential acquisition of Tempo has been a long-term discussion since Providence launched the company in 2019 in partnership with Warner Music Group.
Discussions regarding the acquisition occurred in 2022 but cooled off due to rising interest rates in key markets, including the United States.
Recently, MBW noted that new market players, including Concord and HarbourView, may make their move on Tempo.
Implications and Future Growth
Ultimately, this represents Warner Music Group’s largest acquisition under Robert Kyncl since he took over as CEO in 2023.
This is also the first major acquisition for the former Executive Director Sachel Ryan-Southern, whom Kyncl appointed as EVP of corporate development at WMG last year.
Many had anticipated that Ryan-Saauterne’s first acquisition would be in music distribution; this move sends an intriguing message about a focus on intellectual property.
In a press release, Warner—expected to see a revenue boost from the Tempo acquisition—stated: “Through its disciplined approach to investments and collaborative talent, Tempo has amassed a diverse portfolio focused on empowering artists and songwriters while delivering compelling financial results. WMG investments will also become increasingly beneficial over time as additional rights revert back to Tempo and we expand our management and distribution capabilities.”
Guy Mut, co-chair and CEO of Warner Chappell, commented: “With the acquisition of this impressive Tempo catalog, we expand Warner Chappell’s reach, offering rights to songs that we currently cannot provide, as well as additional rights from songwriters we are already partnered with. Tempo has thoughtfully curated a comprehensive catalog, and I look forward to exploring new opportunities and unlocking great value from these songs.”
Michael Ryan Saautern, EVP of WMG and Director of Corporate Development, added: “WMG and TEMPO have a longstanding relationship and shared interests in promoting great music and catalogs. This transaction aligns perfectly with our strategy to enhance our scale and influence while generating additional revenue from a high-quality portfolio.”
Michael Dominges, senior managing director and investment director at Providence, stated: “The TEMPO team has cultivated a high-quality catalog over the years with leading artists and songwriters and has benefited from close partnerships with WMG since its inception.”
“This is an exciting next step in the company’s evolution and a natural home for its catalog. We look forward to continuing our collaboration with WMG to support TEMPO’s next phase of growth.”
Confirmed: Warner buys majority stake in Tempo (just as MBW told you it would).
