Warner Music, Bain Capital Announce Joint Venture To Invest Up To $1.2B In Music Catalogs

Warner Music Group (WMG) and private equity firm Bain Capital announced on Tuesday a joint venture to purchase up to $1.2 billion worth of legendary music catalogs across the two categories of recorded music and music publishing.

Bain Capital and Warner Music will jointly source and acquire the catalogs, while the entertainment firm will manage all aspects of marketing, distribution, and administration, the companies said.

Warner Music shares were up nearly 3% in midday trading. Stocktwits data showed retail sentiment on the stock has been ‘neutral’ over the past week.

“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,” said Robert Kyncl, CEO, Warner Music Group.

The entertainment company’s artists include Ed Sheeran, Dua Lipa, and Bruno Mars. It has, in recent years, bought David Bowie’s entire song catalog, Madonna's catalog expansion, and David Guetta’s recording deal.

The rise of streaming and tech-driven discovery has transformed music into a compelling investment, expanding its market and reintroducing legacy catalogs to a new generation.

Separately, the Financial Times reported on Tuesday that Warner Music and Bain were targeting $300 million Red Hot Chili Peppers’ catalog, which includes hit songs such as “Under the Bridge,” “Californication,” “Scar Tissue,” and “Give It Away.”

Bain Capital and Warner Music said this joint venture will provide artists and songwriters with opportunities to preserve and expand the reach of their catalogs, “ensuring their legacies are well cared for.”

The partnership was formed through equal equity commitments from Warner Music and Bain Capital, the companies said.

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