Warner Music Group and Bain Capital are launching a joint venture to allow for the purchase of up to $1.2 billion in music catalogs across both recorded music and music publishing. The partnership was formed through equal equity commitments from WMG and Bain Capital.
WMG and Bain will together source and acquire the catalogs, while WMG will manage all aspects of marketing, distribution, and administration. The deal combines WMG’s infrastructure and relationships with Bain Capital’s global resources and financial capabilities.
While the volume of the catalog-acquisition boom around the turn of the last decade has slowed significantly, the size of the deals has not. In the past couple of years Sony has made enormous investments in Queen and Pink Floyd catalogs — $1.1 billion and $400 million respectively — while Primary Wave made a $100 million deal for 50% of Notorious B.I.G.’s holdings. Warner Chappell publishing recently made an undisclosed deal for Tom Petty’s catalog.
“Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns,” said Robert Kyncl, CEO, Warner Music Group. “Augmenting our deep expertise and global infrastructure with Bain Capital’s financial prowess and belief in music will make us the destination of choice for preeminent catalogs.”
“Timeless music content continues to sit at the center of consumer entertainment,” said Angelo Rufino, a Partner at Bain Capital. “Stewardship of catalogs has never been more important as artists and songwriters deserve support to enhance the value of their work while delivering fans new and exciting collaborations. Warner Music Group, with its deep creative resources and partnership culture, is the ideal partner for Bain Capital to work alongside as we grow and safeguard the world’s iconic music.”
Goldman Sachs and Fifth Third Bank will serve as joint lead arrangers to the joint venture.
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