WMG's Sale Of LaLa Nets $9 Million
Edgar Bronfman Jr. And Lyor Cohen Score $14 Million
January 12, 2010 at 4:23 AM (PT)
WARNER MUSIC GROUP has made public in an SEC filing that it got at least $9 million back of the $20 million it invested in online music service LALA.COM, after selling the online company to APPLE. PAIDCONTENT.COM reports "this after it wrote down $11 million of its $20 million investment earlier last year, after disappointing results. Besides the money invested, WMG also had warrants worth $4 million, which were exercisable based on whether LALA.COM was able to help sell 25 million CDs in 5 years after the original 2007 agreement. No surprise, that didn’t happen."
WMG also has a write-off with IMEEM and with MYSPACE for a pennies on the dollar.
WMG wrote in its filing, "In DEC. 2009, the Company sold its equity interest in LALA and entered into an agreement to terminate a memorandum of terms relating to the formation of an international joint venture for total cash consideration of approximately $9.0 million as part of a sale of LALA to APPLE INC. The warrants had an exercise price that was in excess of the total merger consideration paid in respect of the shares for which it could be exercised and, therefore, expired at the time of the closing of the sale of LALA to APPLE INC."
The proxy statement says CEO EDGAR BRONFMAN Jr. and Vice Chairman LYOR COHEN, earned a combined $14 million in salary, bonuses, stock and stock options in 2009. That's down $2 million from their combined 2008 compensation, but twice what they earned in 2007.