Big news from the world of Hollywood rights to cinema and television music:
Entertaining giant Warner Bros. Discovery made a deal with the British Advanced Group to create SP, with which they will jointly control the vast catalog of film and television music.
The creation of the joint venture, as claimed, is “at a price, one of the largest transactions on musical rights, when the libs are perfect.”
A Financial Timesreports that the transaction costs more than 1 billion US dollars – and that “rights will be sold to a joint venture with the British revenier” – in this way, the last company “acquires part of the portfolio and asset management.”
Details of the Joint Venture
Joint investment in the transaction also includes DWS Group, which reports having 963 billion euros ($997 billion) in assets under control as of September 30, 2024.
Warner Bros. Discovery catalog, which extends almost 100 copyright years, contains more than 400,000 songs and musical signals, including “some of the most recognized thematic songs and scores in TV and film history.”
The library includes music from Harry Potter and Lord of the Rings franchises, DC Comics films, as well as television shows such as Friends, Game of Thrones, The Big Bang Theory, Two and a Half Men, ER, Full House, Sex and the City, and Gossip Girl.
Other films and TV shows presented in the portfolio include Rebels Without a Cause, The Exorcist, A Star is Born, Runner Runner, Ransom, The West Wing, ER, Full House, Sex and the City, and Gossip Girl.
According to the announcement from the companies, WBD and CEG “will focus on maximizing the potential of distribution and income from the musical portfolio.”
Warner Bros. Discovery states that they will retain creative and operational control over the musical rights.
The compositions from the catalogs of Warner Brothers, HBO, and Turner Networks will continue to be managed by Universal Music Publishing Group, while those from the Discovery/Scripps network will remain under the control of Sony Music Publishing.
It has been reported that the transaction will come two years after Warner Bros. Discovery considered selling its film library and television music in a deal valuing a catalog of over $1 billion.
In April last year, the advanced group completed 500 million US dollars refinancing debt with a syndicate of four banks led by an American fifth-third bank and a private investment firm from Toronto, Northleaf Capital Partners.
The advanced group stated at that time that it had already identified a “1.5 billion US dollars pipeline” of potential investments.
“Together with CEG, we can find new and exciting ways to entertain the new generation of fans.”
Paul Brusek, Warner Bros. Discovery
Commenting on the transaction with the advanced group, Paul Brusek, President of Music at Warner Bros. Discovery, stated: “This partnership with CEG is an ideal way to expand access to our unprecedented music library while honoring our long history of strong creative supervision and protecting the integrity of works and artists.“
“Together with CEG, we can find new and exciting ways to entertain the new generation of fans.”
“This is really a cult assembly of catalogs created over almost a century by one of the original Hollywood studios, and being able to invest and manage this joint venture with WBD is an incredibly exciting prospect for us.”
Philip Moross, Advanced Group
Philip Reveal, the General Director of Cutting Edge Group, added: “This is really a cult assembly of catalogs created for almost a century by one of the original Hollywood studios, and being able to invest and manage this joint venture with WBD is a thrilling opportunity.”
“This special partnership with Warner Bros. is the culmination of many years of dedication from our team at Cutting Edge and is a strong validation of our early commitment and expertise in this market area.”
“The advanced group is uniquely positioned to participate in transactions of this scale, showcasing the strength and expertise of our team, led by Tim Hegarty, our Head of M&A and Corporate Strategy.”
Tara Finagan, Advanced Group
Tara Finegan, the Chief Operating Officer of the Advanced Group, stated: “The advanced group is uniquely qualified to engage in such transactions, reflecting the capability and talent of our team, under the leadership of Tim Hegarty, our Head of M&A and Corporate Strategy.”
“We look forward to working closely with our friends at Warner Bros. to enhance the value that this invaluable portfolio already possesses and to share the magic of these compositions with even larger audiences worldwide.”
“This transaction illustrates our strategy to provide flexible and tailored capital solutions that enhance asset owners’ capabilities and management teams to realize their vision with speed, confidence, and control.”
Vlado Spasov, DWS Group
Vlado Spasov, the Head of Capital Solutions at DWS Group, stated: “We are proud to partner with Advanced Group and invest alongside Warner Bros. in this strategic joint venture.”
“This transaction illustrates our strategy to provide flexible and tailored capital solutions that enhance asset owners’ capabilities and management teams to realize their vision with speed, confidence, and control.”
Founded in 2006, the London Advanced Group has emerged as a prominent buyer of cinema and television music over the past few years.
In 2022, they collaborated with London capital house Blantyre Capital to finalize a transaction that provided 125 million dollars to acquire rights to a musical publication from composers writing for film and television.
In February 2023, the Advanced Group secured another 100 million dollars from banks led by Nashville Pinnacle Financial Partners.
Also in February 2023, the company announced a joint venture with the entertainment group Village Roadshow, the parent company of Village Roadshow Pictures and Village Roadshow Television.
In May 2023, the Advanced Group entered the pop music sector, making a deal with renowned songwriter and producer Jamie Hartman, known for writing numerous hits for artists including Lewis Capaldi, Celeste, Calvin Harris, and the Backstreet Boys, among many others.
Other significant transactions by the Advanced Group include acquiring a “large catalog of films” from the British company First Score Music Ltd., which included full rights to the master and publication of more than 75 “premium” films. The terms of this transaction were not disclosed, but sources indicated it was in the seven-digit range.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
