Update on Tempo Music’s Sale
Three years ago, MBW informed you that Tempo Music, a music rights fund established by private equity titan Providence, was seeking to sell its catalog for approximately $500 million.
The sale did not occur. How interest rates have started to rise in markets such as the UK and US, major acquisition activity in the music industry has notoriously slowed.
Nevertheless, last year, as interest rates declined and/or appeared more stable in key regions, discussions resumed regarding Pace.
In October, BIE anticipated that the music M&A market would likely see a trend towards PE-backed companies, previously known as music rights buyers turning into sellers – with a potential sale of Pace back on the horizon.
Rumors of Acquisition Intensify
Now, we’re hearing more significant rumors that this narrative is just weeks away from reaching its conclusion: a sale of Pace at an estimated price of around half a billion dollars.
We are informed that at least one major music company, along with independent and financially stable players, is in active negotiations to finalize the acquisition.
Tempo Music’s Journey
Since its inception in 2019, Tempo Music has acquired a catalog of rights/income streams from stars including Wiz Khalifa, Twenty One Pilots (via Tyler Joseph), Florida Georgia Line, and hit songwriter/producer Philip Lawrence.
Providence launched Tempo Music in 2019 in collaboration with Warner Music Group.
From 2021 onwards, it has been led by CEO Josh Empson following the exit of previous CEO Sherrese Clarke Soares (who now operates HarborView).
However, Pace has not shown significant activity in the music mergers and acquisitions sector for quite some time.
Providence’s website indicates that recent press releases regarding Tempo’s catalog acquisitions, including a deal with Twenty One Pilots’ Tyler Joseph, date back to 2021.
Pace does not appear to have an operational official website currently live online.
Last year, Tempo Music filed a lawsuit against Miley Cyrus and several music industry firms, including Sony Music, Live Nation, Warner Chappell, and Concord Music Publishing, claiming copyright infringement.
The lawsuit alleged that Cyrus’ megahit Flowers illegally borrowed elements from Bruno Mars’ hit When I Was Your Man.
Pace acquired a portion of the copyright for When I Was Your Man from Philip Lawrence, one of the co-writers of the song, in 2020.
The lawsuit stated: “Any fan of Bruno Mars knows that When I Was Your Man didn’t achieve all this success alone.”
Flowers reportedly “duplicates numerous melodic, harmonic, and lyrical elements from When I Was Your Man, including melodic structure and progression of the verse, the connecting bass line, specific bars of the chorus, theatrical music elements, lyrical components, and distinct chord progressions,” the complaint further added.
The next big music biz acquisition will be $500m-valued Tempo Music, say MBW sources
