A live performance from Wiz Khalifa, one of the artists who’s recorded works in the Tempo Music catalog. Photo Credit: The Come Up Show
Warner Music Group (WMG) has purchased a majority interest in Tempo Music Investments, the catalog-focused JV it launched with Providence Equity Partners in late 2019.
The major label revealed that deal (besides its calendar Q4 2024 financials and a new Spotify licensing agreement) today. According to the appropriate release, WMG specifically secured “a controlling stake” in Tempo, with Providence Equity remaining aboard as minority owner for the time being.
Absent from the to-the-point release, however, are details about the transaction’s value and the reasons behind Providence’s decision to sell.
On the former front, it’s not a secret that recent years have delivered a sizable pile of song rights sales. Among other things, the sub-sector’s considerable volume has made it challenging to monitor and readily recall each deal. (Additionally, some purchases are closed without public announcements.)
But Tempo possesses pieces of works recorded by Twenty One Pilots, Adele, Bruno Mars, and Wiz Khalifa, to name a few. Regarding the types of rights at hand, WMG CFO Bryan Castellani ballparked Tempo’s IP makeup at 80% publishing, 20% recorded.
And just in passing, anonymous sources have placed Tempo’s value at around $450 million under the WMG deal; upon debuting, the fund reportedly had $650 million at its disposal.
Shifting to the motivation behind the sale, lacking a crystal ball, we don’t know exactly what prompted Providence Equity to cash out.
Focusing on what we do know, Warner Music CEO Robert Kyncl during his company’s earnings call confirmed an option to scoop up Providence’s remaining Tempo stake by 2027’s end. Also worth reiterating is that Providence sold European concert giant Superstruct last year.
As for the other side of the Tempo Music transaction, Warner Music hasn’t hesitated to emphasize its aggressive buyout strategy under Kyncl. Most recently, that strategy fueled the early 2025 acquisitions of the DWA and Extravaganza catalogs.
And it’s still been less than one year since Warner Music explored (but ultimately abandoned) the purchase of Paris-headquartered Believe.
2024 further saw the Cloud 9 owner WMG bring on Goldman Sachs vet Michael Ryan-Southern to “supercharge” its acquisition strategy.
“WMG and Tempo have a long-standing history and aligned interests in uplifting great music and catalogs,” Ryan-Southern relayed of today’s play. “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.”
Elsewhere during Warner Music’s calendar Q4 2024 earnings call, execs touted the perceived control-related benefits of owning Tempo. Longer term, the “investment will become even more accretive as deals with other publishers roll off and we expand the scope of our direct control over the catalog,” Kyncl communicated.