The next big music biz acquisition will be $500m-valued Tempo, say MBW sources

Three years ago, Music Business Worldwide reported that Tempo Music, a music rights fund established by the private equity firm Providence, was exploring the sale of its catalog valued at approximately $500 million. However, the sale did not proceed as rising interest rates in key markets like the UK and US led to a slowdown in high-profile music acquisitions.

Interest revived last year as rates stabilized or dropped, renewing discussions about Tempo. In October, predictions surfaced suggesting a shift in the music M&A market, with entities previously purchasing music rights, like those backed by private equity, potentially becoming sellers. Now, there are strong indications that a sale of Tempo’s portfolio, valued at around half a billion dollars, may be imminent. Discussions reportedly involve major music companies along with independent and finance-backed entities.

Since its inception in 2019, Tempo Music has acquired rights and income streams from various artists, including Wiz Khalifa, Twenty One Pilots, Korn, Florida Georgia Line, and songwriter/producer Philip Lawrence. Originally launched in partnership with Warner Music Group, Tempo has been led by CEO Josh Empson since 2021, following Sherrese Clarke Soares’s departure.

Recently, Tempo has been quieter in the M&A space, with its last significant acquisitions reported in 2021. The company also faced legal challenges last year, suing Miley Cyrus and several music industry entities over allegations of copyright infringement in her song “Flowers,” which Tempo claimed borrowed elements from Bruno Mars’s hit “When I Was Your Man.” Tempo had acquired a share of the copyright for this song from Philip Lawrence in 2020.