Latest news with #RobertKyncl
Malaysian Reserve
02-07-2025
- Business
- Malaysian Reserve
Warner Music and Bain set venture, seek Red Hot Chili Peppers songs
WARNER Music Group Corp. announced a $300 million cost-savings drive, part of an effort to free up funds for growth initiatives, including a just-announced joint venture to acquire music catalogs. The plan will result in an unspecified number of job cuts, according to a regulatory filing Tuesday. Almost two-thirds of the savings will be achieved through job cuts, with the rest coming from organizational changes and overhead savings, the company said. Warner Music employed about 5,800 people at the end of its latest fiscal year. The company expects to realize the full benefit of the savings by the end of fiscal 2027. 'These decisions are not being made lightly,' Chief Executive Officer Robert Kyncl said in a note to employees. 'It will be difficult to say goodbye to talented people, and we're committed to acting with empathy and integrity.' The filing coincided with the company's announcement Tuesday of a joint venture with the private equity firm Bain Capital to invest as much as $1.2 billion in iconic music catalogs. The 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 companies said in a statement on Tuesday. The two will acquire catalogs together, while Warner Music will manage marketing, distribution and administration. As part of the partnership, Warner Music is in talks to acquire the catalog of the Red Hot Chili Peppers for more than $300 million, according to a person with knowledge of the matter. Hits by the rock group, which is already part of Warner Music, include songs such as Under the Bridge. There's no guarantee a deal will be reached, said the person, who asked not to be identified discussing private negotiations. The Financial Times reported on the talks earlier Tuesday. Music has become an attractive asset in recent years as streaming broadened the industry's reach and emerging technologies introduced classic songs to new audiences. Investment firms including Blackstone Inc., Apollo Global Management Inc. and KKR & Co. have spent billions of dollars acquiring catalogs while major record labels are racing to control more intellectual property. Sony Group Corp. and Universal Music Group NV have also pursued a similar strategy of acquiring catalogs. Warner Music, whose artists include Charli XCX, Fleetwood Mac and Bruno Mars, has acquired song catalogs in recent years such as those of David Bowie and the entire recordings catalog of producer David Guetta. Earlier this year, Warner bought a controlling stake in Tempo Music, which owns a catalog of song rights spanning recordings from Adele to Wiz Khalifa, in a deal valued at $450 million. Warner Music is controlled by billionaire Len Blavatnik. –BLOOMBERG
Yahoo
02-07-2025
- Business
- Yahoo
Warner Music Group to Undergo Layoffs as Part of $300 Million Cost-Savings Plan
Warner Music Group will undergo layoffs as part of a wider cost-saving and restructuring initiative, WMG Robert Kyncl told staff in an internal memo on Tuesday. In the memo, reviewed by The Hollywood Reporter, Kyncl wrote that WMG is looking to reduce costs by about $300 million to 'future-proof' the company and 'reinvest in the business,' particularly into the music itself. Kyncl didn't disclose how many employees would be let go but wrote that WMG is looking to cut about $170 million through headcount reduction. The remaining $130 million will be targeted through administrative and real estate expenses, per the memo. Kyncl wrote that many of the changes would happen within the next three months, and the rest in the 2026 fiscal year. More from The Hollywood Reporter Warner Music Group Launches $1.2B Joint Venture With Bain Capital For Music Acquisitions Beatles' Apple Corps Names Tom Greene As New CEO BoyNextDoor on 'No Genre' and Gearing Up for Lollapalooza: "We're Really Giving it Our All" 'I know that this news is tough and unsettling, and you will have many questions,' Kyncl wrote. 'The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. You'll be hearing from your local leaders as soon as possible about your area of the company and your role within it. We're communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and we're committed to acting with empathy and integrity.' Warner has underwent significant changes in the past several years, including several rounds of layoffs. The most notable change, however, was Elliot Grainge taking over as CEO of Warner's Atlantic Music Group last year, replacing longtime Atlantic executive Julie Greenwald. WMG CEO of recorded music Max Lousada, along with 300 Entertainment co-founder Kevin Liles, stepped down from their posts as well. News of the cost-saving measures comes hours after WMG had disclosed a new $1.2 billion joint venture with Bain Capital to acquire recorded and publishing catalogs. In Kyncl's memo, he highlighted both M&A and A&R as areas of particular focus for WMG's growth plan. WMG had posted an underwhelming quarterly earnings report back in May, but the company has also found recent success with upcoming artists like Atlantic's Alex Warren — whose 'Ordinary' has topped the Hot 100 for four of the past five weeks — and Warner Records' Sombr, who has the No. 2 song on Spotify's Global 50 chart. 'Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025,' Kyncl wrote. 'These wins are powered by our ability to become simultaneously more effective and more efficient … allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities.' Read Kyncl's full memo below: Hi everyone, Two years ago, we began to transform our company; not just to tinker around the edges of an old model, but to build a fast, innovative, and collaborative organization that reflects how music moves in the new world. Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025. These aren't just the biggest hits in the world today; they're our evergreen catalog of the future. At the same time, we're starting to see better progress in our global recorded music market share, while hitting new highs in music publishing. These wins are powered by our ability to become simultaneously more effective and more efficient… allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities. Building on this success requires us to keep evolving. Today we're announcing the remaining steps in our plan to help future-proof the company and unlock the next era of growth. Specifically, we'll be reducing our annual costs by ~$300 million as we reinvest in the business: ~$170 million through headcount rightsizing for agility and impact, and ~$130 million in administrative and real estate expenses. Many changes will be implemented in the next three months, with the remainder in fiscal 2026. I know that this news is tough and unsettling, and you will have many questions. The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. You'll be hearing from your local leaders as soon as possible about your area of the company and your role within it. We're communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and we're committed to acting with empathy and integrity. As we evolve, we'll be focused on these core drivers of our success: We're putting more money behind the music… via a new growth plan. A&R: Working with the ELT, we've sharpened our investment criteria… a more holistic and targeted approach to partnering with the world's greatest musical talent, across (i) the most culturally potent and highest potential repertoire centers, (ii) globally managed off-roster catalog, and (iii) music publishing. M&A: We also have an ambitious M&A pipeline, especially for timeless catalogs. Our acquisitions of Tempo and start-up RSDL are good signposts of how we intend on growing both our copyrights and our capabilities. And, as you've seen today, we've announced an exciting venture with Bain Capital that adds up to $1.2 billion to our catalog purchasing power across both recorded music and music publishing. We're becoming a stronger, leaner company… for greater cut-through. TEAM: Our faster, more agile teams of local experts will be backed by a strengthened suite of services across Marketing, Distribution, Catalog, and Merchandising & Direct-to-Fan. This aligns our collective efforts with our clearest priorities, making it easier for great artistry and ideas to shine through. Our recent changes at LATAM and Atlantic Records, following the long-term rejuvenation of Warner Chappell and Warner Records, prove that teams can get leaner, deliver massive No. 1s, and win market share… all at the same time. TECH: We'll continue to prioritize better digital tools for artists, songwriters, and employees. For example, we'll expand the rollout of the WMG Pulse app and add more features to give artists and songwriters insights, while landing the benefits of our financial transformation initiative as well as a vastly improved supply chain and data infrastructure. By simplifying how we work, our WMG One platform will enable deeper focus, stronger collaboration, and more powerful outcomes. In an ever-changing industry, we must continue to supercharge our capabilities in long-term artist, songwriter, and catalog development. That's why this company was created in the first place, it's what we've always been best at, and it's how we'll differentiate ourselves in the future. As we implement these changes, we promise to communicate with you regularly. Thank you for your patience and support for one another. We've got some remarkable music coming, and I know that whatever challenges we're navigating, your commitment to our artists and songwriters is unwavering. Thank you, Robert Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
Warner Music Group Launches $1.2B Joint Venture With Bain Capital For Music Acquisitions
Warner Music Group has unveiled a new $1.2 billion joint venture with investment firm Bain Capital, the two companies announced Tuesday, with the companies targeting iconic recording and music publishing catalogs. WMG and Bain Capital will identify potential catalog acquisitions together, the companies said, with WMG handling marketing, distribution, and administration. More from The Hollywood Reporter Beatles' Apple Corps Names Tom Greene As New CEO BoyNextDoor on 'No Genre' and Gearing Up for Lollapalooza: "We're Really Giving it Our All" Universal Music Group, UCLA Launch Berry Gordy Music Industry Scholarship 'Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns,' WMG CEO Robert Kyncl, said in a statement. '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.' The new joint venture is just the latest move in a catalog acquisition market that had grown increasingly competitive over the past several years. Back in April, the Universal Music Group-backed Chord Music Partners acquired a minority stake in country superstar Morgan Wallen's recorded catalog from his record label Big Loud. Last month Sony Music Publishing bought publishing company Hipgnosis Songs Group. WMG has been active in the space too, buying a controlling stake in Tempo Music Investments back in February after co-launching the company back in 2019. Since Launch, Tempo had acquired rights to songs recorded by Bruno Mars, Twenty One Pilots and Adele among others. Goldman Sachs and Fifth Third Bank are serving as lead arrangers for the new joint venture, WMG and Bain Capital said. 'Timeless music content continues to sit at the center of consumer entertainment,' Bain Capital partner Angelo Rufino said in a statement. '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.' Best of The Hollywood Reporter Most Anticipated Concert Tours of 2025: Beyoncé, Billie Eilish, Kendrick Lamar & SZA, Sabrina Carpenter and More Hollywood's Most Notable Deaths of 2025 Hollywood's Highest-Profile Harris Endorsements: Taylor Swift, George Clooney, Bruce Springsteen and More
Yahoo
01-07-2025
- Business
- Yahoo
Warner Music and Bain Capital Announce $1.2 Billion Joint Venture to Invest in Music Catalogs
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. More from Variety Warner Music Posts Tough Quarterly Earnings, Revenue Down 1% Warner Music Group Teams With Anjula Acharia on South Asian Music Label Music Industry Moves: Kobalt Partners With EDM Label Thrive Music 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. Best of Variety Oscars 2026: George Clooney, Jennifer Lopez, Julia Roberts, Wagner Moura and More Among Early Contenders to Watch New Movies Out Now in Theaters: What to See This Week 'Harry Potter' TV Show Cast Guide: Who's Who in Hogwarts? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Warner Music Announces Further Restructuring, $170 Million in Staff Cuts
Just hours after Warner Music announced a $1.2 billion joint venture with Bain Capital to invest in music catalogs, the company also announced what it says is the final stage of its months-long restructuring, which will eliminate an unspecified number of jobs that will number in the hundreds and total $170 million, out of around $300 million in total savings. The upshot of the announcement is that the company is doubling down on its investments in music, including A&R and M&A (such as the Bain deal), while cutting costs in other areas, including staff and administrative and real estate expenses. The company already has undergone several waves of layoffs in recent years, and this next round is expected to continue into 2026. More from Variety Read Warner Music Chief Robert Kyncl's Year-End Letter to Staff, Celebrating Success During an 'Intense' 2024 FKA Twigs Reveals She Developed Her Own Deepfake in Congressional Testimony on AI Regulation With Warner Music CEO Without Naming Spotify, Warner Music CEO Calls for Streaming Services to Raise Prices Further details were unclear at the time of this article's publication; CEO Robert Kyncl's memo to staff appears below. Hi everyone, Two years ago, we began to transform our company; not just to tinker around the edges of an old model, but to build a fast, innovative, and collaborative organization that reflects how music moves in the new world. Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025. These aren't just the biggest hits in the world today; they're our evergreen catalog of the future. At the same time, we're starting to see better progress in our global recorded music market share, while hitting new highs in music publishing. These wins are powered by our ability to become simultaneously more effective and more efficient… allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities. Building on this success requires us to keep evolving. Today we're announcing the remaining steps in our plan to help future-proof the company and unlock the next era of growth. Specifically, we'll be reducing our annual costs by ~$300 million as we reinvest in the business: ~$170 million through headcount rightsizing for agility and impact, and ~$130 million in administrative and real estate expenses. Many changes will be implemented in the next three months, with the remainder in fiscal 2026. I know that this news is tough and unsettling, and you will have many questions. The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. You'll be hearing from your local leaders as soon as possible about your area of the company and your role within it. We're communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and we're committed to acting with empathy and integrity. As we evolve, we'll be focused on these core drivers of our success: We're putting more money behind the music… via a new growth plan. • A&R: Working with the ELT, we've sharpened our investment criteria… a more holistic and targeted approach to partnering with the world's greatest musical talent, across (i) the most culturally potent and highest potential repertoire centers, (ii) globally managed off-roster catalog, and (iii) music publishing. • M&A: We also have an ambitious M&A pipeline, especially for timeless catalogs. Our acquisitions of Tempo and start-up RSDL are good signposts of how we intend on growing both our copyrights and our capabilities. And, as you've seen today, we've announced an exciting venture with Bain Capital that adds up to $1.2 billion to our catalog purchasing power across both recorded music and music publishing. We're becoming a stronger, leaner company… for greater cut-through. • TEAM: Our faster, more agile teams of local experts will be backed by a strengthened suite of services across Marketing, Distribution, Catalog, and Merchandising & Direct-to-Fan. This aligns our collective efforts with our clearest priorities, making it easier for great artistry and ideas to shine through. Our recent changes at LATAM and Atlantic Records, following the long-term rejuvenation of Warner Chappell and Warner Records, prove that teams can get leaner, deliver massive No. 1s, and win market share… all at the same time. • TECH: We'll continue to prioritize better digital tools for artists, songwriters, and employees. For example, we'll expand the rollout of the WMG Pulse app and add more features to give artists and songwriters insights, while landing the benefits of our financial transformation initiative as well as a vastly improved supply chain and data infrastructure. By simplifying how we work, our WMG One platform will enable deeper focus, stronger collaboration, and more powerful outcomes. In an ever-changing industry, we must continue to supercharge our capabilities in long-term artist, songwriter, and catalog development. That's why this company was created in the first place, it's what we've always been best at, and it's how we'll differentiate ourselves in the future. As we implement these changes, we promise to communicate with you regularly. Thank you for your patience and support for one another. We've got some remarkable music coming, and I know that whatever challenges we're navigating, your commitment to our artists and songwriters is unwavering. Thank you, Robert Best of Variety Oscars 2026: George Clooney, Jennifer Lopez, Julia Roberts, Wagner Moura and More Among Early Contenders to Watch New Movies Out Now in Theaters: What to See This Week 'Harry Potter' TV Show Cast Guide: Who's Who in Hogwarts? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
