The Warner Music Group yesterday announced it is acquiring a 73.5% stake in leading rock and metal label Roadrunner. The deal will mean Roadrunner will now operate as a division of the major - in the US within Warner's Atlantic Records Group and elsewhere as a freestanding unit within Warner Music International. Specifics of the $73.5 million deal aren't known, but both Warner and Roadrunner bosses say there will be no staff changes as part of the acquisition suggesting Roadrunner will continue to run pretty autonomously from the rest of Warner Music, for the time being at least. Roadrunner founder Cees Wessels will continue to run the operation.
The deal will see Wessels working closely with Warner's US boss Lyor Cohen again. The rock label previously had a relationship with Universal's Island Def Jam division when Cohen was in charge there. Confirming the new deal yesterday, Cohen told CMU: "Very rarely do you find a record company with such a longstanding reputation and distinct viewpoint that its very name rises to the level of true brand. Roadrunner, from its strong artist roster to its deep catalogue and first-rate creative team, embodies the hard rock aesthetic to its core. Cees and I shared great success when we brought Roadrunner into the IDJ family in 2001, so naturally I'm thrilled today to welcome Cees and his team to Warner Music Group. We look forward to building upon Roadrunner's 25 years of success together."
Wessels added: "It was predestined that Lyor Cohen and I would work together again. Five years ago, before Nickelback broke massively worldwide, Lyor recognized the power of the Roadrunner brand, its artists and the creative talent of the staff. Today, after continuous strong growth of the label, I feel proud that we are partners again. Roadrunner has become part of a forward-thinking group of companies that not only looks with confidence to the future, but also still retains the creative spirit of the founder of Atlantic, Ahmet Ertegun."
The deal is subject to regulatory approval in Germany, but is expected to be given the green light in late January.