There are some big moves afoot within Warner Music Group this week, some of which have been announced, and others merely hinted at. Well, stronger than a hint: WMG has raised $535m through a private ‘notes’ offering (debt funding) with specific plans for the cash.
“The Company has entered into non-binding letters of intent with respect to three acquisitions of certain music and music-related assets… for aggregate cash consideration of approximately $710 million,” announced WMG in a financial filing yesterday.
The $535m will be put towards those deals, with WMG adding that the assets’ aggregated revenues for the last financial year were $42.8m. However, WMG noted that if the acquisitions do not complete, it will use the funding “for general corporate purposes”.
In separate news, WMG took the wrappers off its new artist, label and brand services division, WMX. It includes the WEA commercial services arm, and WMG’s growing stable of media properties: Uproxx, Songkick, HipHopDX and its roster of YouTube channels. Merch, e-commerce and audience strategy will also sit within WMX.