Warner Bags Rhino Records

By Adam Sandler

HOLLYWOOD (Variety) - In a move that places much of the catalog from
the Atlantic, Elektra and Warner Bros. Records labels under one roof,
Warner Music Group has acquired the outstanding 50% of Rhino Records,
according to sources.

The deal, which closed late Monday and is expected to be announced as
early as Tuesday, also gives Rhino founders Harold Bronson and Richard
Foos new, lucrative five-year employment contracts and hefty signing

The agreement, which took four years to orchestrate, bases a final
sale price for Rhino on the label's projected future revenues. The
company is currently estimated to be valued at $100 million, according
to industry observers.

Some marquee artists will be excluded from Rhino's efforts under the
new deal.

Elektra will continue to market inhouse product from the Doors while
Warner Bros. will maintain responsibility for Frank Sinatra and Prince
product, among others. Atlantic has long held marketing duties for Led
Zeppelin discs, which will continue.

Rhino has become the architect of catalog exploitation by releasing
retrospective works from such well-known acts as Ray Charles, Otis
Redding, the Everly Brothers and Aretha Franklin, through licensing

Reuters/Variety ^REUTERS@