Just this morning we reported that an announcement regarding Warner Music Group’s purchase could be made as soon as today after the label’s shares experienced a nice increase this past week. And boom, it’s now official: Russian billionaire Len Blavatnik has purchased WMG!
Blavatnik and his Access Industries purchased the major label for $3.3 billion in cash, or $8.25 per share. This will lead to WMG becoming a privately held company, which means stock will no longer be traded on the New York Stock Exchange. The transaction is expected to be completed by the third calendar quarter of this year. Furthermore, the purchase includes WMG’s entire recorded music and publishing divisions.
The Russian billionaire, who had a seat on WMG’s board for four years and already owned 2% of the company, became a leading candidate this week as negotiations intensified this week. Blavatnik released the following statement regarding his new purchase:
“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.”
We can only speculate what WMG’s purchase actually means for its future, as well as its subsidiary labels like Roadrunner Records. However, rumors have it that Blavatnik might try to purchase EMI and combine the two companies. But again, all we can do at the moment is gossip. You can read the full press release officially announcing the purchase online, as well as read Hypebot’s profile on the new WMG owner.