Warner Music Group Abandons Indie Distributor Shopping After $1.8B Believe Pass
Warner Music Group (WMG) CEO Robert Kyncl has announced the company's shift towards expanding their in-house distribution capabilities rather than acquiring independent distributors. This strategic decision comes after WMG declined to acquire Believe for approximately $1.8 billion last year.
Warner Music logo on blue background
Kyncl explained at a Morgan Stanley mini-conference that after evaluating numerous distribution companies over the past 18 months, WMG has decided to focus on building their own technology. Their in-house technology team has already been developing new features for the past year and a half, which Kyncl believes will lead to more efficient outcomes.
The company has undergone significant organizational changes, including:
- Strategic new hires like Ariel Bardin to improve technology and digital supply chain
- Closer collaboration between Kyncl and Warner Music Latin America president Alejandro Duque
- Appointment of new Atlantic Music Group CEO Elliot Grainge
- Addition of Michael Ryan-Southern as EVP of corporate development
While WMG isn't actively seeking indie distributor acquisitions, they remain open to strategic opportunities. Ryan-Southern's role specifically involves identifying potential acquisitions to boost growth and earnings.
This development occurs as Universal Music Group proceeds with its acquisition of Downtown Music Holdings through Virgin Music Group, raising concerns from European music trade association Impala about market consolidation and its impact on independent artists.