Warner Music Group, the third largest music company in the world, is up for sale. Word has come that the major label, home to Kid Rock and Death Cab for Cutie, among others, has hired investment bank Goldman Sachs to solicit takeover bids.
According to Bloomberg, one potential buyer is private equity firm Kohlberg Kravis Roberts. Whoever picks up the company will inherit a veteran roster that includes such aging heavy hitters as the Bee Gees and Fleetwood Mac. While on the one hand, those artists still move units, an expressed concern could be that Warner has focused most of its efforts on already-established artists with little new blood to keep the company going.
It's unclear whether the sale of Warner Music Group would be reflected in one fell swoop, from its record company to its publishing division, or if it would be selling the company piece by piece. A spokesperson for the company declined to comment on the matter.
The news of the sale comes as a Paris court found Warner Music's chief executive officer, Edgar Bronfman Jr., guilty today (January 21) of charges stemming from trades made in Vivendi Universal stock in 2002.
Regardless, news of the potential turnover has seen shares of Warner Music Group skyrocket 22.7 percent this morning to $5.79 on the New York Stock Exchange.