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Warner plans £45m annual cost-savings from Parlophone acquisition

Tim Ingham
Warner plans £45m annual cost-savings from Parlophone acquisition

Warner Music Group believes that it can make $70 million (£45.3m) in cost-savings related to its acquisition of Parlophone Label Group this year.

In an extensive memo to staff that also revealed WMG will treat Parlophone as a new frontline label alongside Atlantic and Warner Bros, company CEO Stephen Cooper said that regulatory approval for the deal had already been reached in the US and Brazil.

He sais that cost synergies would include the integration of the two companies' systems, logistics, office buildings, supply chain and distribution channels "as well as the integration of support and shared service functions in those territories where duplication will exist".

These savings would be in addition to Warner's own ongoing cost-saving, said Cooper, whilst indicating that lay-offs will be announced within both integrated businesses.

He said: "We are moving to make decisions as soon as we can following the transaction’s closing in order to provide employees with the greatest certainty and to retain the strongest team possible from the wealth of talent that exists within both companies. 

"We will continue to keep you informed of important milestones and will be as open, transparent and accessible as possible throughout the process."

Cooper said that Warner is to launch its own classical brand, where it will house EMI Classics and Virgin Classics.

Warner acquired Parlophone Label Group, a divestment from Universal's buyout of EMI Music, for £487 million in cash in February.

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Tags: Parlophone, Parlophone Label Group

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