Warner to Buy Hard Rock Label Roadrunner

Warner Music has announced that it will purchase 73.5% of heavy metal label Roadrunner for $73.5 million. The Dutch label was founded in 1981 and has been distributed by Vivendi SA's Universal Music Group since 2001. With popular artists such as Slipknot and Nickleback, Roadrunner is the third-leading heavy metal label in the U.S. by sales volume and has been thriving as other labels have faced a decline in the past six years. Managing Director Cees Wessels is expected to remain with Roadrunner which will be joined with Warner's Atlantic Records Group in the U.S. and with Warner Music International overseas.
• Sources: New York Times, Wall Street Journal
• Related commentary: Warner Music Partners With Apple on DVD Albums; Stock Implications, Warner Music on Publishing Acquisitions, YouTube's Warner Music Group Deal , Warner Music Discusses its Digital Milestone. Conference call transcripts: Warner Music Group F4Q06
• Potentially impacted stocks and ETFs: Warner Music (WMG). Competitors: Sony (SNE)

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