Warner Music to Acquire Ryko, Gaining Labels and Song Library

[7/4]

March 25, 2006

Warner Music to Acquire Ryko, Gaining Labels and Song Library

By BLOOMBERG NEWS

The Warner Music Group agreed yesterday to buy the Ryko Corporation for $67.5 million to gain independent labels and recordings by artists including Frank Zappa.

The planned purchase of Ryko from an investment group led by J. P. Morgan Partners includes more than 1,000 songs, Warner Music said yesterday. Warner will also acquire a distribution business and music labels like Restless Records and Rykodisc, whose artists include the Posies and Joe Jackson.

A takeover of Ryko will give Warner Music older recordings that can generate steady sales without the costs associated with new releases. Ryko's music library includes songs from Richard Thompson, the Misfits and They Might Be Giants. Warner will also gain access to new and developing artists affiliated with the smaller Ryko labels.

The older titles, known as catalog in the music industry, will be marketed by the Rhino Entertainment unit of Warner, which puts out greatest-hits and compilation albums.

Ryko's chief executive, Sam Holdsworth, a partner in the investment group, will resign, Warner said. William Hein will remain head of the labels and Jim Cuomo will continue to oversee distribution.

The company has about 75 employees. No job cuts are planned, said John Esposito, who heads Warner's WEA distribution business.

The distribution unit sells albums from independent companies including Rough Trade/Sanctuary and Alligator Records, a blues label based in Chicago. Warner Music plans to operate the business separately from its Alternative Distribution Alliance division, which is also a distributor of independent labels.

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Zappa must be turning over in his grave!

Edited March 26, 2006 by 7/4

[GA Russell]

By coincidence, I'm listening to an Alligator release this very moment - Kenny Neal's Walking On Fire.

I didn't know that Rhino is now part of Warner. I wonder how long ago they acquired it.

[7/4]

By coincidence, I'm listening to an Alligator release this very moment - Kenny Neal's Walking On Fire.

I didn't know that Rhino is now part of Warner. I wonder how long ago they acquired it.

Last Friday.

[Chuck Nessa]

Warner has been distributing Ryco and associated labels for a few years.

[Adam]

Warner has owned Rhino for several years now. In Burbank is a building with Warners, Atlantic, and Rhino logos on the side. Also, most Rhino releases are of items from the Warners family. I think in the same way, Shout! Factory does a similar role for material from the Universal family.

[HolyStitt]

Maybe I am wrong, but I don't believe Ryko actually owns the Zappa catalog. I believe the Zappa Estate owns the masters and licenses them to Ryko for a determined period.

I am not too surprised by this move. Ryko used to be located in the Minneapolis area and locally there is a whole industry of people discussing the companies stupid business moves.

My favorite is that they left some of the master tapes behind (which were eventually moved to the dumpsters!) when they moved to the East Coast.

I know people that recovered master tapes, very rare promotional material, unmarked boxes of catalog, and insider documents in their dumpster.

[Claude]

I didn't know that Rhino is now part of Warner. I wonder how long ago they acquired it.

Warner bought 50% of Rhino in 1992, and the other 50% in 1998

http://www.bsnpubs.com/warner/rhino/rhinostory.html

[Chalupa]

Maybe I am wrong, but I don't believe Ryko actually owns the Zappa catalog. I believe the Zappa Estate owns the masters and licenses them to Ryko for a determined period.

I am not too surprised by this move. Ryko used to be located in the Minneapolis area and locally there is a whole industry of people discussing the companies stupid business moves.

My favorite is that they left some of the master tapes behind (which were eventually moved to the dumpsters!) when they moved to the East Coast.

I know people that recovered master tapes, very rare promotional material, unmarked boxes of catalog, and insider documents in their dumpster.

That's what I thought too about the Zappa material but according to wikipedia his widow sold his music to Ryko in 1995....

http://en.wikipedia.org/wiki/Barking_Pumpkin_Records

Here's some more info on the artists that are on Ryko...

http://en.wikipedia.org/wiki/Rykodisc

[GA Russell]

I didn't know that Rhino is now part of Warner. I wonder how long ago they acquired it.

Warner bought 50% of Rhino in 1992, and the other 50% in 1998

http://www.bsnpubs.com/warner/rhino/rhinostory.html

Thanks Claude!

[Д.Д.]

Maybe I am wrong, but I don't believe Ryko actually owns the Zappa catalog. I believe the Zappa Estate owns the masters and licenses them to Ryko for a determined period.

That's what I thought too about the Zappa material but according to wikipedia his widow sold his music to Ryko in 1995....

http://en.wikipedia.org/wiki/Barking_Pumpkin_Records

My understanding is that Ryko owns the particular ('93) masters of FZs tapes but not the original tapes themselves (this is probably why the recent Japanes FZ issues used the same masters as regular Zappa catalogue).

$67.5million is probably too much if it hadn't included FZs catalog.

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Ryko also owns Gramavision, don't they? I wonder if there is a chance we'll some of their catalogue back in print. And some Hannibals as well (would really like to get another copy of Jali Musa Jawara's "Yasimika" - my CD is in horrible condition by now).