Friday, May 6, 2011

Warner Music Group, bought back $ 3.3 billion

Earthquake in the world of music. The major Warner Music Group will be bought by Russian conglomerate, Access Industries. The board of directors of one of the giants of the music industry met Thursday at the headquarters of the firm, and approved the takeover of Warner Music Group by billionaire Len Blavatnik, $ 3.3 billion dollars.

This acquisition comes at a time of upheaval for the successive record company in a sector which itself is undergoing a revolution. During the last decade, Warner Music Group ended up separated from Time Warner, an IPO and lost a major artist, Madonna. With a turnover of around 3 billion over the last year, Warner Music did not find the necessary resources to enable it to stem its heavy debts.

The origin of the record label Warner Music Group in 1972. At the time the U.S. group Warner Communications merges its three record companies: Warner Bros. Records, Elektra Records and Atlantic Records gathered under the banner Wea. In 1989, the record company WEA is absorbed by the merger of two industry giants Warner Communications and Time.

With the Internet bubble, AOL Time Warner merged with AOL Time Warner and deveant latter will sell Warner Music Group in 2003 for 2.6 billion dollars Edgar Bronfman Jr. Today, after many questions about the future of record companies is Access Industries, a group of Russian companies headed by billionaire Len Blavatnik who offers one of the finest music U.S..

This billionaire, who lives in England, has a huge fortune, including interests in British Petroleum (BP). Created in 1986 by Len Blavatnik, Access Industries is a typical example of the "American dream". This is how the Wall Street Journal recounts elsewhere, Friday, May 6, the extraordinary rise of the Soviet immigrants.

However, Len Blavatnik is no stranger to the staff as it already had 2% stake in Warner Music Group. The sale of the record label Warner was approved by the board of directors but requires the official green light from shareholders and regulators. It should be completed in the third quarter of 2011.

With its catalog of high quality music, this new acquisition will likely open a new future for the staff who has seen the absorption of BMG-Sony Music

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