Yesterday (July 1), Warner Music Group and private investment giant Bain Capital unveiled their plans for a $1.2 billion music rights-buying joint venture.
MBW reported that roughly half of the $1.2 billion would be made up of debt, half with cash, with equal liability on both sides of the JV.
Now we know the finer details of the arrangement between WMG and Bain, courtesy of a fresh SEC filing.
The joint venture was formally established on June 29, 2025, through agreements between a WMG subsidiary called WMG BC Holdco and a Bain Capital subsidiary called BCSS W JV Investments (B), L.P (BainCo).
This duo have formed a joint entity called “Beethoven JV 1 LLC” (WMBC) as their 50/50 partnership vehicle.
According to the SEC filing, the partnership’s $1 billion-plus war chest is broken down as $500 million in equity capital split equally between the partners (which obviously equals each party investing $250 million apiece).
The fund also includes “approximately $500 million in initial warehouse debt commitments” secured directly by WMBC’s music catalog assets, with the ability to “increase the size of the [debt] facility to $700 million,” bringing the total to $1.2 billion.
Interestingly, the SEC filing reveals that JV is designed as the first of potentially multiple joint ventures.
According to the filing, “the JV Agreement contemplates the formation of additional 50/50 WMGCo/BainCo JVs,” suggesting Warner and Bain could launch additional acquisition vehicles.
Each partner has also granted the joint venture a “right of first opportunity” on any catalog acquisitions they’re considering that meet specified financial criteria.
WMG and Bain Capital said in their official announcement on Tuesday (July 1) that they will source and acquire the catalogs together, while WMG will manage all aspects of marketing, distribution, and administration.
As we pointed out yesterday, the funds might be deployed swiftly: Warner and Bain are understoof to be mulling the acquisition of the Red Hot Chili Peppers’ recorded music catalog for around $350 million.
WMG and Bain Capital said that they’d be targeting “legendary” music catalogs across both recorded music and music publishing.
“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.”
In a statement issued on Tuesday, Warner Music Group CEO Robert Kyncl said: “Iconic artists and songwriters choose WMG to grow their legacies and introduce their art to new generations through impactful and innovative campaigns.”
He added: “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.”
Meanwhile, as reported in a separate story on Tuesday, Warner announced what it refers to as “a strategic restructuring plan… designed to free up funds to invest in music and to accelerate the Company’s long-term growth”.
In a note to staff sent on Tuesday and obtained by MBW, Warner Music Group CEO Robert Kyncl referred to it as the “remaining steps in our plan to help future-proof the company”.
WMG says in its SEC filing that it “expects the Plan to generate pre-tax cost savings of approximately $300 million on an annualized run-rate basis by the end of fiscal year 2027 and expects the majority of the cost savings under the Plan to be accretive to Adjusted OIBDA”.
Just over half of that annual $300 million cost-cutting target ($170 million) will be achieved via headcount reductions at WMG, said the company.
A further $30 million of savings will be achieved by reducing costs (like admin and real estate expenses) directly related to the headcount reductions. The rest of the cost-cutting will target SG&A expenses.
In its SEC filing, Warner said it expects this plan to be “fully implemented by the end of calendar year 2026”.Music Business Worldwide
