In August, Atlantic Records Group Chairman/CEO Jason Flom resigned and company co-chairman/COO Craig Kallman immediately took over. As a result, WMG said it would consolidate the units.
Lava was a joint venture between Flom and Atlantic.
WMG said it expects to incur one-time charges of approximately $25 million to $30 million during the fourth quarter as a result of Flom’s resignation and the integration of the two units. About $20 million of those will be non-cash charges for the write-off of amounts paid to Flom in 2002 as part of the transaction that formed Lava.
As part of the integration process, some positions at Lava have been eliminated.
WMG also announced a quarterly dividend of 13 cents a share, which will amount to a total payout of about $19.3 million.