It's Official: Warner Music Sold To Access Industries For $3.3 Billion
May 6, 2011

As expected, Warner Music Group Corp. announced this morning that it has signed a "definitive merger agreement" with Access Industries, for Len Blavatnik's group to acquire WMG in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses.

The purchase price of $8.25 per share represents a 34.4 percent premium over the volume-weighted average share price of $6.14 over the previous six months.

Under the terms of the merger agreement, WMG's stockholders will receive $8.25 per share in cash at the closing of the transaction. WMG's Board of Directors approved the transaction and recommended that WMG's stockholders approve the transaction. In addition to stockholder approval, the transaction is subject to the satisfaction of customary closing conditions and regulatory approvals. It is anticipated that the transaction will be completed in the third calendar quarter of this year.

WMG Chairman/CEO Edgar Bronfman, Jr. said, "We believe this transaction is an exceptional value-maximizing opportunity that serves the best interests of stockholders as well as the best interests of music fans, our recording artists and songwriters, and the wonderful people of this company. We are delighted that Access will be the new steward of this outstanding business. They are supportive of the company's vision, growth strategy and artists, while bringing a fresh entrepreneurial perspective and expertise in technology and media. Most importantly, Access supports Warner Music's commitment to our recording artists and songwriters who are the foundation of our current and future success."

Len Blavatnik, Chairman and founder of Access Industries, said, "I am excited to extend my longstanding involvement with Warner Music. It is a great company with a strong heritage and home to many exceptional artists. I look forward to working closely with the many talented people within the company."

Jorg Mohaupt, Head of Media at Access Industries, added, "The music industry is at an inflection point where digital adoption is rapidly gaining momentum. Warner Music, as one of the most progressive forces in the music business, is well positioned to capture this opportunity for music creation and distribution."

Scott Sperling, Presiding Director of WMG, said, "It has been our great pleasure working with the extraordinary team at Warner Music over these past seven years. The company has managed to significantly increase market share and profitability during our ownership period and consistently outperformed even during a challenging period for the industry. Len Blavatnik and Access are likewise deeply committed to the music business and we know that we will be leaving the company in good hands."

Following the closing of the transaction, WMG will become a privately held company and its stock will no longer be traded on the New York Stock Exchange. The company will retain the Warner Music Group name and will continue to operate out of its current facilities.

Thomas H. Lee Partners L.P. and its affiliates, Bain Capital Partners, LLC and its affiliates, and Edgar Bronfman, Jr., who together hold approximately 56 percent of the company's outstanding shares, have entered into a voting agreement with Access under which those stockholders have agreed to vote their shares in favor of the merger.

Access has secured committed financing from Credit Suisse and UBS Investment Bank. These funds, in addition to equity financing from Access, will finance the cash consideration to WMG's stockholders.

WMG noted that with the proposed transaction, it will not host a conference call to discuss results for the second quarter of fiscal 2011. The company expects to file its Quarterly Report on Form 10-Q for the period ended March 31, 2011 by May 10, 2011.




 
Breaking News
Rodney on the Roq Ending After Over 4 Decades
iHeartMedia Names Kix Layton SVP/Programming For Greenville
PK's Throwback 105.5 Brings Old Skool Hip Hop And R&B To South Florida
iHeartMedia St. Louis Announces The Debut Of The New Majic 103.7
May 26, 2017
CBS Radio Promotes Shelly Easton and Bobby Smith in its Philly Cluster
iHeartMedia Names Brian Hall SVP of Programming for Ashville
Albie Dee Promoted To OM For Adams Radio Group, Salisbury/Ocean City, MD
May 24, 2017
RCA Records Promotes Joe Daddio To VP/Pop Promotion
iHeartMedia Names Rob Whiteside Digital PD For Virginia/Carolina Region
WBEN/Phiadelphia's Matt Cord & Kristen Herrman To Host National Dog Show Charity Walk
iHeartMedia Hartford Names Kelsey Maxon Digital PD
INSIGHTS: What Radio Can Learn from the TV Upfronts
Cumulus Media Adds Jay Philpott To Nights At KQRS/Minneapolis
Margaret Ann Ronayne NYC Memorial Service on June 8th
May 23, 2017
Beasley Media Group Unveils New Format Captains
iHeartMedia Austin Debuts New Spanish Top 40 Station TU 103.1
CBS Radio Officially Names John Farneda MD At WXRT/Chicago
In Brief - May 23, 2017
May 22, 2017
CBS Corporation Extends Chairman/President/CEO Les Moonves
KDMX (102.9 NOW)/Dallas Adds Kannon In Afternoon Drive
Entercom-Charlotte Signs Contract Extension with Matt & Ramona Show
May 19, 2017
Cumulus Media Oxnard/Ventura Names Matthew "Doughboy" Florence PD For KVYB
Westwood One Presents Backstage at the BBMAs
May 18, 2017
iHeartMedia St. Louis Names Maurice DeVoe PD For KMJM (100.3 The Beat)
Music News
Southern Rock Legend Gregg Allman Passes Away
The World Remembers Gregg Allman
Ariana Grande Releases Statement on Manchester Attack
Quick Hits: Guns N' Roses, Lana Del Rey, Nicki Minaj, Gorillaz, High & Low Festival
Fergie Signs Worldwide Partnership With BMG
Quick Hits: Ariana Grande, Leslie Jones, Jon Bon Jovi
22 Dead in Explosion at Manchester Ariana Grande Concert
Quick Hits: Iggy Azalea, Newport Folk Festival
It's a Sign of the Times: Harry Styles Debuts at #1
Drake Dominates Billboard Music Awards
Chris Cornell's Wife Issues Statement on His Death
Rocker Chris Cornell Dead at 52
The Entertainment World Remembers Chris Cornell
FMQB Photo Pass: Metallica
Katy Perry Announced as First Judge for American Idol Reboot
FMQB NOW

Nicki Farag,
SVP of Promotion,
Def Jam Recordings

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!