To pay dividend of 13 cents per share.
Warner Music Group will take a $25-$30 million charge against its fiscal fourth quarter financial results in connection with its integration of Lava Records into The Atlantic Records Group.
The company says approximately $20 million of the charge is a write-off on non-cash interests paid to Lava founder Jason Flom in 2002 as part of the deal that formed the label.
As previously reported, WMG folded Lava into Atlantic in September, following the Aug. 17 resignation of Flom as the head of Atlantic. The ensuing Lava integration effort resulted in the ousting of 13 of the label's 31 staffers, including GM Lee Trink, head of marketing Lou Plaia, product manager Aaron Simon and the publicity department helmed by VP Lisbeth Cassady.
In other WMG news, the company says it will pay shareholders a fourth quarter dividend of approximately $19.3 million, or 13 cents per share, to stockholders of record as of the close of business on Oct. 24.
WMG intends to pay up to $80 million per year in quarterly dividends. Payouts are determined on a quarterly basis. Shares in WMG were trading at $19 in mid-day trading--up over 29% from a low of $14.70 earlier this summer.