Warner Music Group announced that it acquired a controlling stake in Tempo Music Investments, which is an investment platform for premium music rights, from Providence Equity Partners. And Providence will remain a minority investor in Tempo and continue to work with WMG in an advisory capacity.
WMG and Providence collaborated to launch Tempo in 2019, combining Providence’s capital and investment expertise with WMG’s deep music industry experience, resources, and network to support, promote, and build value around artists and songwriters worldwide. Through its meticulous approach to investments and collaborative work with creative talent, Tempo amassed a diverse portfolio that focuses on empowering artists and songwriters while delivering compelling financial results. WMG’s investment will also become more accretive over time as other rights revert to Tempo, and expand the scope of WMG’s administration and distribution.
Since its founding, Tempo has acquired music rights from some of today’s leading songwriters, many of whom Warner Chappell co-publishes, including Twenty One Pilots’ Tyler Joseph, Wiz Khalifa, Florida Georgia Line, songwriters Brett James and Shane McAnally, and Lukas Graham songwriters Stefan Forrest, Morten Pilegaard, Morten Ristorp Jensen, and Jaramye Daniels.
Tempo also acquired rights from top songwriters, artists, and producers, including artists such as the Jonas Brothers, Ben Rector and Korn; singer-songwriter Mia Fieldes; songwriter and CMNTY Culture founder Philip Lawrence (24k Magic & Uptown Funk by Bruno Mars, All I Ask by Adele, and more); songwriter and producer, and Frank Ocean collaborator Malay; and artist, songwriter, and producer Jeff Bhasker.
Moelis & Company acted as financial advisor and Weil, Gotshal & Manges served as legal advisor to Tempo and Providence.
KEY QUOTES:
“By acquiring Tempo’s impressive catalog, we’re expanding Warner Chappell’s reach, bringing rights from songwriters we currently don’t represent, as well as additional rights from songwriters with whom we’re already partners. 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 CEO of Warner Chappell
“WMG and Tempo have a long-standing history and aligned interests in uplifting great music and catalogs. This deal is a natural fit for us, and a good example of how our investment strategy is designed to build our scale and influence, while delivering additional revenue at a high margin.”
- Michael Ryan-Southern, WMG’s EVP, Chief Corporate Development Officer
“The Tempo team has built a high-quality catalog over the years with top artists and songwriters, and has benefitted from a close partnership with WMG since its foundation. This is an exciting next step in the company’s evolution and a natural home for its catalog. We look forward to continuing to work with WMG and to support Tempo’s next phase of growth.”
- Michael Dominguez, Senior Managing Director and Chief Investment Officer at Providence
