Warner Music Group Shifts Focus From Indie Acquisitions to In-House Distribution After $1.8B Believe Pass
Warner Music Group (WMG) CEO Robert Kyncl announced the company will focus on expanding their in-house distribution capabilities rather than acquiring independent distributors. This strategic decision comes after WMG passed on purchasing Believe for approximately $1.8 billion last year.
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This development follows Believe's ongoing $500 million copyright infringement lawsuit with Universal Music Group, which progressed to a pre-trial conference in January. Meanwhile, Universal continues its pursuit of Downtown Music Holdings through Virgin Music Group, drawing criticism from European music trade association Impala over market consolidation concerns.
Kyncl emphasized WMG's commitment to building rather than buying: "I've looked at all distribution companies over the last 18 months — and we're not willing to grow this at all costs. We have an incredible technology team, which has been building features already for a year and a half. So this way you get to the same outcome much more efficiently."
Recent organizational changes at WMG include:
- Strategic new hires, including Ariel Bardin for technology and digital supply chain improvements
- 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 to identify potential growth acquisitions
While WMG maintains its focus on internal development, the company remains open to strategic acquisitions that align with their growth objectives.
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