Warner Music

June
26
Death Row Records - Sold!

Story by Andrew Barker

Deathrow1 Purveyor of the most controversial pop music of the last two decades, and longtime property of the most frightening man in the music industry, Death Row Records has been sold. The little-known Global Music Group paid $24 million for the label's assets, beating out both Warner Bros. and Koch Records.

The label -- once home to Dr. Dre, Snoop and Tupac; currently the home of no one you've ever heard of -- wracked up $750 million in revenue during its heyday, only to see all of its key talent depart, with many of them leveling allegations of extreme malfeasance against frequently-incarcerated CEO Suge Knight.

Knight filed for bankruptcy in 2006.

He was knocked out by some guy outside of an LA club earlier this year:


As for the current owners, they inherit Death Row's lucrative back catalogue and a number of unreleased Tupac recordings, as well as a host of labyrinthine legal entanglements and unpaid bills .

On a related note, some good news about Death Row valedictorians: AllHipHop.com has found a primary source to confirm that material for Dr. Dre's long-gestating, possibly apocryphal "Detox" actually exists. Unfortunately, that source is Snoop.

October
11
Warner Takes Stock In Madonna's Value

Madonna The day after news leaked that Madonna was packing her conical bras and hitting the road with concert promoter Live Nation, the folks at her home of 24 years, Warner Music, were quick to issue a report from Bank of America that explained how the former material girl was no longer worth a nine-digit payday.
Under the title of “For $120 Million, She’s All Yours…,” Banc of America Securities  analysts wrote
There is “headline risk associated with a Madonna defection. However, the bigger risk would be to overpay for an artist that does not seem to be generating the revenue to support the contract being discussed;
  Besides the fact that Madonna will turn 60 years old in the last year of the proposed deal, it is “fantastic “ for her but does not “make economic sense” for WMG;
  “Her loss will not meaningfully impact Warner’s near-term sales.”
The key, analysts, say, is that Warner will get an album from Madonna next year before she goes her merry way. (And yes it is is spelled Bank and Banc).


About

The Set List is written and compiled by Variety associate editor Phil Gallo. Gallo, based in Los Angeles, writes about the music business for Daily Variety and reviews concerts, television shows and theater.



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