Warner Music Settles with Madonna’s Maverick
LOS ANGELES (Reuters) – Warner Music has bought out Madonna’s stake in her Maverick Record label as part of a settlement in their lengthy legal dispute over the future of the 12-year-old joint venture, the company said on Monday.
Warner Music said in a statement on Monday it had also purchased the share held by Maverick Chief Operating Officer Ronnie Dashev and signed a new multiyear contract with Maverick A&R chief Guy Oseary.
The terms of the deal were not disclosed but Warner Music said it would have a majority stake in the venture. Maverick will continue to operate as a stand-alone label and would place greater emphasis on signing and developing artists, the statement said.
In March, Maverick filed a breach of contract lawsuit against Warner Music seeking $200 million in damages and an end to the venture which is home to acts like Michelle Branch and Alanis Morissette.
Madonna and her two partners had tried to sell her 60-percent stake in the label to Time Warner for a reported $60 million but talks apparently broke down over the asking price. Industry sources said Warner had ultimately paid Madonna significantly less than $60 million.
The dispute predated last November’s $2.6 billion purchase of Warner Music by a group of investors led by Edgar Bronfman Jr.
Warner Music Group Chairman Lyor Cohen said the agreement was “clearly a win-win for both WMG and Maverick.”
Oseary called Madonna and Ronnie Dashev “my family. and I thank them not only for having helped build Maverick but also for having defined who I am today.”
Madonna releases her own records under a separate recording deal with Warner Bros. Records.
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