Rykodisc label to function as stand-alone.
Warner Music Group has completed its $67.5 million acquisition of Rykodisc from an investment group led by JP Morgan Partners.
As previously reported, Rykodisc, which has annual revenue of about $80 million, will operate as a stand-alone entity based in New York, but under the banner of WEA, the major-label distribution arm for WMG, sources say.
The acquisition, announced in March, makes WMG the only major that owns and operates two independent distributors. WMG also owns Alternative Distribution Alliance, the largest U.S. indie distributor with revenue expected to be about $180 million this year.
The Rykodisc label is also going to be a stand-alone operation, although its catalog may be turned over to WMG's Rhino operation, sources suggest.