First off, since I'm in a Finance class this month at Full Sail University, when I found out that "Warner Music Group Corp. (NYSE: WMG) is the world's only publicly-traded major music company" I was intrigued and knew that Warner Music Group (who was last traded at $8.17 today 6-10-11) was the perfect thing to discuss for the 1st Music Industry Update on my blog. The Overview on WMG's website states that Warner comprised of
"an array of businesses aimed at helping artists achieve long-term creative and financial success while providing consumers with the highest-quality music content available. WMG is engaged in the recorded music business (including artist services) and the music publishing business. WMG is a global leader in national and international repertoire and home to some of the best-known labels in the recorded music industry including Asylum, Atlantic, Cordless, East West, Elektra, Nonesuch, Reprise, Rhino, Roadrunner, Rykodisc, Sire, Warner Bros., Warner Music Nashville and Word. " In Hip-Hop & R&B, this means that WMG is the house of Artist such as Gucci Mane, T.I., Bruno Mars, B.o.B, Saigon, Musiq Soulchild, Travis Barker, Diggy and the newly signed & popular artists of Rick Ross' Maybach Music.
The overview also states how within the last few years, WMG has "grown to become the world's third-largest recorded music business and third-largest music publishing business and, during a time of dramatic industry transition," became established as one of the music industry's most successful companies.
The first piece of news comes from a blog post of Forbes Magazine's site about billionaire Len Blavatnik‘s purchase of Warner Music Group. He purchased the company with a $3.3 billion all-cash buyout. "Blavatnik’s company will pay $8.25 per share for publicly-traded Warner, a 34.4% premium over the stock’s six-month average price. The Russian-American billionaire is no stranger to Warner and its management–he served on the company’s board from 2004-2008 and purchased a Manhattan townhouse from chairman Edgar Bronfman, Jr. in 2007 for $50 million." WMG's CEO, Edgar Bronfman, who holds 7% of the company stands to gain $100 million from the deal.
In other WMG news, also on Forbes' blog, there is an article on WMG's Chief of Recorded Music, Lyor Cohen speaking on the future of the music business. The ex-president & co-founder of both Def Jam & Rush Management respectively spoke on various topics, including "the importance of multiple rights deals and implications of shrinking artist rosters industrywide." In the video posted on Forbes' site, Cohen overall speaks about how "The Revolution Will Be Digitized". Both articles on Forbes' site are important to know because these types of moves such as being bought and hearing from influential Music Industry people speak on how technology is changing the music industry is very important to those people like me interested in becoming apart of the Music Industry because we need to know what's going on & the effects they are going to have on the industry.
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