Warner To Acquire Ryko

Warner Music Group agreed March 24th to buy indie recording company Ryko Corp. for $67.5 million.

The New York-based company is reportedly paying cash for Ryko, which was previously owned by a group of investors led by JP Morgan Partners.

The deal brings Warner about 1,000 recordings from Ryko’s varied catalog, which includes Frank Zappa, They Might Be Giants, The Dead Milkmen, The Flaming Lips, and The Replacements. They will be marketed under Warner’s Rhino Entertainment label.

The Rykodisc label and Ryko Distribution will remain independent under the Warner umbrella.

Ryko CEO Sam Holdsworth will step down but Ryko Distribution President Jim Cuomo and Rykodisc President William Hein will stay on.

Warner is not planning any layoffs because of the acquisition, which is scheduled to close in June.