NEW YORK - WMG will likely be reborn as a private company. Sean Parker the founder of Napster and side pal in the creation of Facebook has made a bid with several other businessman for Warner Music Group. Warner Music Group is a record label and formerly a division of TimeWarner. It is the fourth largest largest record label in the world. WMG's artist roster includes Led Zeppelin, Madonna and Jay-Z and Biggie Smalls.WMGs has been chronically unprofitable in recent years and has undergone several restructurings. In 2004 the company underwent restructuring which reduced the workforce by 20% a 30% clearing of the artist roster. Revenue has dropped by double digits over the last few years.
If the deal were to come to fruition it would be mostly for the debt of the company with shareholders receiving the rest. The company has been bought out before to be spun off back to shareholders.
Sean Parker who some claim led to the downfall of the music industry is now investing in it. 10 years ago which record label would have guessed that?
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