Home › DMW Daily › May 7, 2009

Warner Music Halting Venture Capital Investments

Authored by Mark Hefflinger on May 7, 2009 - 11:18am.
New York - Major label Warner Music Group (NYSE: WMG) has shelved plans for any future venture capital investments in the digital space, after it has to write off $33 million against investments in streaming music services Lala and imeem, PaidContent reported, citing CEO Edgar Bronfman Jr.'s comments to analysts on a conference call.

"We do not intend to make more digital venture capital investments. The intention was to (invest in) young companies pursuing innovative business models. Some of these digital venture capital investments have not met expectations. It makes sense to recognize the very different valuations these companies are receiving in the current economic environment," said Bronfman.

Bronfman also conceded that the company is "disappointed" with another one of its online investments, the MySpace Music joint venture.

"MySpace Music has been slow to create monetization tools and to be able to impact in a revenue-generating way the massive audience that they have been able to attract," Bronfman said.

"That needs to change, quite frankly -- for MySpace, for the music business and for Warner Music Group."

 

Related Links:
http://snipurl.com/hkk57 (PaidContent)

Published in DMW Daily, May 7, 2009
tags: Deals | VC | Music | Warner Music | Edgar Bronfman Jr. |



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