The Privatization Of Warner Music Group

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Warner Music Group was founded in 1958 by Jack Warner. Founded as Warner Bros. Records, it was initially designed as a soundtrack factory for Warner Bros. film studios. Warner Music Group is currently headed by CEO Stephen Cooper in New York City, NY. Warner Music Group’s reported revenue in 2015 was $2.96 billion, placing it at 752 on the Fortune 500 list. Warner Music Group also employs roughly 3,500 employees annually. When owned by Time Warner, this company was traded publically. However, when Access Industries purchased the company, Warner Music Group became privatized. It should also be noted that Warner Music Group is one of the “big three” recording companies and overall is the third largest recording company in the world. Warner Music Group operates three main record labels. These labels are Atlantic Records Group, Parlophone, and Warner Bros. Records. Known for a diverse roster of artists, Warner Music Group has harbored many all-star musicians since its inception. Notable artists include Madonna, Coldplay, The Eagles, Led Zeppelin and P. Diddy, among a laundry list of other platinum selling artists. Warner Music Group boasts an expansive music catalog that holds 28 out of the top 100 U.S bestselling albums of all time. Warner Music Group …show more content…

However, before it became a privatized company, shares for WMG were selling for $17 apiece. From 2014 to 2015 the company suffered a $61 million dollar loss. This came after a $156 million dollar gain the previous year. Digital revenue for the company has been rising steadily since 2011 and is projected to continue increasing as physical music sales decline. In 2015 cash used by operating activities was down $14 million from the previous fiscal year. At the same time, operating income was up $8 million more than the previous fiscal year. Warner Music Group has cited streaming sites such as Youtube as a major focus for revenue in the years to

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