Warner Music Goes To Bronfman Group

doug_hti · 24th November 2003

Deal announced today worth $2.6 billion

The group led by investor Edgar Bronfman's Lexa Partners, Thomas H. Lee Partners, Bain Capital and Providence Equity Partners will buy Warner Music Group and Warner/Chappell music publishing for approximately $2.6 billion in cash and other considerations, Time Warner announced this morning. EMI Group had hoped to purchased Warner Music Group but fell out of the bidding last week. WMG includes the Warner Bros., Atlantic, Elektra and Word labels; this deal will create one of the largest independent music companies in the world. The group will keep the Warner Music Group name, and Time Warner has retained the option of buying back a minority stake in the business within three years of closing. Bronfman, who bought Universal Music and Universal Studios for Seagram during his tenure as CEO at that company, will be the most senior executive in the new company. The transaction, which must go through regulatory approval in both the U.S. and the European Union, may take up to 60 days to close, says Time Warner.

Bob Olhsson · 24th November 2003

I suppose the good news is that Warner didn't merge with another major...

doug_hti · 24th November 2003

yes, in my opinon that is a good thing as well. Warner, already cleaned house in the last three months, firing off lots of people to get them ready for the sale...but EMI would have made it worse...

Curve Dominant · 24th November 2003

The other good news, is that somebody's actually willing to buy a record label today.

CV7 · 24th November 2003

Yes, maybe he's got himself in over his head again? Like the Universal fiasco.

TinderArts · 25th November 2003

At least this guy has some interest is music for music.

everglass · 25th November 2003

Quote:

At least this guy has some interest is music for music.

What makes you say that?

quasimodonyc · 25th November 2003

This deal is really strange. The VC firms that are banking this move are really conservative (Bain Capital, etc.) which makes me wonder what they are planning. Do they really believe that a label can make money with Bronfman at the helm, picking and developing new artists and executive talent? Do they have new distro/revenue streams in the works that we don't know about? Or, (my guess) are they just going to gut the company to a bare bones staff and sell catalog?

Bob Olhsson · 25th November 2003

Quote:

Originally posted by quasimodonyc
This deal is really strange. The VC firms that are banking this move are really conservative ...are they just going to gut the company to a bare bones staff and sell catalog?

Exactly what crossed my mind.

doug_hti · 25th November 2003

interesting...

well to my knowledge, I think WMG has posted profits this last year, especiallyl the Warner Chappell pub catalog...wasn't AOL that drug them under the rug

doug_hti · 25th November 2003

and they have gutted the company CONSIDERABLY within the last few months

e-cue · 25th November 2003

This is true. I'm on them like a hawk with my P.O.'s these days.

smoothmoniker · 25th November 2003

I think there's a general sense that the industry is rounding a corner. Record sales are slightly stronger, Itunes and other like it are proving to be a legit revenue stream.

Maybe, just maybe, the majors are seen as a great value. You can buy one for pocket change, and if the industry really is rebounding, have something extremely profitable on your hands within a very short time.

Just a thought. And maybe a prayer.

-sm

24th November 2003	#1
doug_hti Lives for gear Joined: Jul 2002 Location: Calabasas, California Posts: 1,142 Thread Starter	Warner Music Goes To Bronfman Group Deal announced today worth $2.6 billion The group led by investor Edgar Bronfman's Lexa Partners, Thomas H. Lee Partners, Bain Capital and Providence Equity Partners will buy Warner Music Group and Warner/Chappell music publishing for approximately $2.6 billion in cash and other considerations, Time Warner announced this morning. EMI Group had hoped to purchased Warner Music Group but fell out of the bidding last week. WMG includes the Warner Bros., Atlantic, Elektra and Word labels; this deal will create one of the largest independent music companies in the world. The group will keep the Warner Music Group name, and Time Warner has retained the option of buying back a minority stake in the business within three years of closing. Bronfman, who bought Universal Music and Universal Studios for Seagram during his tenure as CEO at that company, will be the most senior executive in the new company. The transaction, which must go through regulatory approval in both the U.S. and the European Union, may take up to 60 days to close, says Time Warner. __________________ doug

24th November 2003	#4
Curve Dominant Lives for gear Joined: Oct 2002 Location: Control Room Posts: 1,949	The other good news, is that somebody's actually willing to buy a record label today. __________________ Eric Vincent http://www.studioericvincent.com

25th November 2003	#13
smoothmoniker Gear addict Joined: Apr 2003 Location: Los Angeles Posts: 440	I think there's a general sense that the industry is rounding a corner. Record sales are slightly stronger, Itunes and other like it are proving to be a legit revenue stream. Maybe, just maybe, the majors are seen as a great value. You can buy one for pocket change, and if the industry really is rebounding, have something extremely profitable on your hands within a very short time. Just a thought. And maybe a prayer. -sm __________________ metricusers.com - the Metric Halo Users Forum

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread starter	Forum	Replies	Last Post
Absurd Warner Music Group Royalty Statements	XHipHop	Music Business	1	4th December 2009 08:05 PM
When a music video goes to sexy/slutty?	smashbrand	Work In Progress / Advice Requested / Show & Tell / Artist Showcase / Mix-Offs	2	4th November 2009 04:58 AM
PZM Mic to record group interview	decryption	So much gear, so little time!	2	18th October 2007 09:40 PM

24th November 2003	#2
Bob Olhsson Motown legend Joined: Jun 2002 Location: Songwriter Gulch, Nashville TN Posts: 10,879	I suppose the good news is that Warner didn't merge with another major...

24th November 2003	#5
CV7 Gear maniac Joined: Nov 2003 Location: Los Angeles, Ca. Posts: 213	Yes, maybe he's got himself in over his head again? Like the Universal fiasco.

25th November 2003	#6
TinderArts Gear addict Joined: Jul 2002 Location: Bowie, MD Posts: 417	At least this guy has some interest is music for music.

25th November 2003	#8
quasimodonyc Gear nut Joined: Aug 2002 Location: LA Posts: 125	This deal is really strange. The VC firms that are banking this move are really conservative (Bain Capital, etc.) which makes me wonder what they are planning. Do they really believe that a label can make money with Bronfman at the helm, picking and developing new artists and executive talent? Do they have new distro/revenue streams in the works that we don't know about? Or, (my guess) are they just going to gut the company to a bare bones staff and sell catalog?

25th November 2003	#12
e-cue Lives for gear Joined: Jun 2002 Location: Lost Angeles Posts: 4,069	This is true. I'm on them like a hawk with my P.O.'s these days.