There’s been a modicum of debate on the market this week over how a lot cash Warner Music Group paid to acquire Kevin Liles’ 300 Entertainment.
Some MBW sources shut to the deal instructed the buyout, introduced Thursday (December 16), value Warner roughly $400 million; others instructed the ultimate worth was simply north of that determine.
Now we all know for positive: Warner paid $400 million, on the nostril, to acquire 300…. and paid it out in cash.
According to an SEC submitting posted yesterday (December 17), Warner bought a US-based firm referred to as Theory Entertainment LLC, doing enterprise as 300 Entertainment, on the day of the announcement (December 16).
That deal was pursuant to phrases and circumstances of a merger settlement between Warner Music and numerous concerned events.
The submitting reads: “On December 16, 2021, Warner Music Group Corp. (the “Company”) bought Theory Entertainment LLC d/b/a 300 Entertainment, pursuant to the phrases and circumstances of the merger settlement of the identical date amongst Warner Music Inc. and MM Investment LLC, each wholly-owned subsidiaries of the Company, the Buyer Representative, Trifecta Merger Subsidiary LLC, Theory Entertainment LLC d/b/a 300 Entertainment and the Seller Representative.”
The submitting additional confirms: “The merger consideration was $400 million in cash, subject to adjustment for working capital, cash, indebtedness and expenses.”
Warner says it is going to publish the total textual content of the merger settlement in its subsequent quarterly earnings replace to buyers.
To fund the acquisition, Warner seems to have used cash from a $535 million debt elevate it introduced final month.
Led by CEO Kevin Liles, 300 Entertainment is among the most profitable fashionable unbiased labels in the United States.
The firm was initially based in 2012 by Liles alongside his former Warner Music and Def Jam colleague, Lyor Cohen.
Their fellow co-founders at 300 had been Roger Gold (now supervisor of Camila Cabello) and Todd Moscowitz, who just lately bought a majority stake in his personal demi-indie label – Alamo Records – to Sony in a nine-figure transaction.
Google/Alphabet was an early minority investor in 300, however has since relinquished this fairness.
Subsequent to the Warner acquisition, 300 will proceed to be run by Kevin Liles. In addition, Liles turns into CEO and Chairman of Warner’s Elektra Music Group.
300 Entertainment’s largest artist successes to date embody Megan Thee Stallion, Fetty Wap, and Young Thug.Music Business Worldwide