Warner Music and Bain Capital Announce $1.2b Song Rights Acquisition Fund

Warner Music Group (WMG) and private investment firm Bain Capital are launching a joint venture to enable the purchase of up to $1.2 billion of “legendary music catalogs” across recorded music and music publishing.

The details:

• As per the official statement, WMG and Bain Capital will together source and acquire the catalogs.

• WMG will manage all aspects of marketing, distribution and administration.

• Goldman Sachs and Fifth Third Bank will serve as joint lead arrangers to the joint venture.

• WMG and Bain Capital will provide “equal equity commitments.”

Renewed focus:

• The announcement comes as WMG forecasts $300 million in savings through impending staff layoffs and reduced admin and real estate costs.

• In the accompanying letter to staff, WMG CEO Robert Kyncl highlighted a focus on M&A as being one of the key pillars of the company’s future, as supported by this JV announcement.

What they said:

• Robert Kyncl: “Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns. 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.”