Confirmed: Warner Paid $ 400 Million In Cash To Acquire 300 Entertainment
There has been minimal debate this week over how much Warner Music Group paid to acquire 300 Entertainment from Kevin Liles.
Some MBW sources close to the deal have suggested that the buyout, announced Thursday, December 16, cost Warner around $ 400 million; others have suggested the final price was just north of that figure.
Now we know for sure: Warner paid $ 400 million, over the nose, to acquire 300…. and paid in cash.
According to a SEC filing released yesterday (December 17), Warner purchased a US-based company called Theory Entertainment LLC, doing business as 300 Entertainment, on the day of the announcement (December 16).
This agreement was in accordance with the terms and conditions of a merger agreement between Warner Music and various parties involved.
The record reads: “On December 16, 2021, Warner Music Group Corp. (the “Company”) purchased Theory Entertainment LLC d / b / a 300 Entertainment, pursuant to the terms and conditions of the same-date merger agreement between Warner Music Inc. and MM Investment LLC, two wholly owned subsidiaries of the Company, the Buyer’s Representative, Trifecta Merger Subsidiary LLC, Theory Entertainment LLC d / b / a 300 Entertainment and the Seller’s representative. “
The record further confirms: “The merger consideration was $ 400 million in cash, subject to adjustment for working capital, cash flow, debt and expenses.”
Warner has announced that it will publish the full text of the merger agreement in its next quarterly investor earnings update.
To finance the acquisition, Warner appears to have used cash from a $ 535 million debt increase announced last month.
Led by CEO Kevin Liles, 300 Entertainment is one of the most successful modern independent labels in the United States.
The company was founded in 2012 by Liles alongside his former Warner Music and Def Jam colleague Lyor Cohen.
Their co-founders at 300 were Roger Gold (now manager of Camila Cabello) and Todd Moscowitz, who recently sold a controlling stake in his own semi-indie label – Alamo Records – to Sony in a nine-figure deal.
Google / Alphabet was one of the first minority investors in 300, but has since waived that stake.
After the Warner acquisition, 300 will continue to be led by Kevin Liles. Additionally, Liles becomes CEO and President of Warner’s Elektra Music Group.
The biggest artist hits from 300 Entertainment to date include Megan Thee Stallion, Fetty Wap and Young Thug.Music trade around the world