NEAR TRUTHS: KYNCL'S NEW ERA

As Warner Music Group boss Robert Kyncl continues to make moves, enormous change is afoot at the company, with WMG Recorded Music chief Max Lousada set to exit at the end of the fiscal year and 10K founder/head Elliot Grainge tapped to take over as CEO of Atlantic.

The Recorded Music position will be eliminated in what’s being called a “flattening” of the company that will see all divisions reporting to Kyncl.

The 30-year-old Grainge will be overseeing Atlantic, Elektra and 300, which are to be folded into one unit—saving about $100m by some estimates.

Grainge, who launched his successful 10K venture in 2016, brought it over to WMG as a stand-alone label (along with acquisition Homemade Projects) in a JV deal that was sealed in 2023. 10K’s roster has variously included Trippie Redd, Ice Spice, Artemas, Surfaces, XXXTENTACION, Internet Money, Tekashi 6ix9ine, Aitch, YTB Fatt, SXMPRA and COIN.

It’s believed that board member Val Blavatnik, one of several dynamic young figures at WMG, has played a behind-the-scenes role in these developments. Rumors had flown about that Lyor Cohen, who ran the group back in the day and subsequently worked with Kyncl at YouTube, might be returning, but these proved to be unfounded.

Lousada attained his latest post in 2017, having previously served as CEO of Warner Music U.K. and, before that, chairman of Atlantic U.K., where his successes included Ed Sheeran, Dua Lipa and Coldplay.

Some observers say that his refusal to relocate from London created issues at the company, and that he and Kyncl simply never found a groove together.

That said, the well-liked, charismatic Lousada has earned kudos for the stunning turnaround of Warner Records, having empowered Aaron Bay-Schuck and Tom Corson, who’ve enjoyed a blazing-hot run with Zach Bryan, Teddy Swims and Benson Boone, among other acts. The tandem’s current market share (6.3) is now significantly greater than Atlantic’s, an astounding turnaround compared to a few years ago. The latest round of changes has also given the pair oversight of Warner Music Nashville.

What awaits Lousada in his next chapter? Biz watchers think the Englishman will have his pick of opportunities and little trouble putting together financing for a new venture, should he so desire.

Erstwhile Chairman/CEO Julie Greenwald will be moving into a non-executive chairman role. She is said to be basically chairman of her desk.

Greenwald joined Atlantic in 2004 as president, becoming chairman/COO in 2009 and chairman/CEO of the newly formed Atlantic Music Group in 2022. After a lengthy run of market-share growth, Atlantic has been cold and underperforming over the last five years. The company’s all-important current market share, which in 2019 was a strong 12.1, has dipped to 5.4 YTD.

Was this reorganization the plan all along when the 10K deal was announced, or just a backup plan if it proved impossible to stop what insiders call the hemorrhaging of red ink? Atlantic’s breaking of new artists essentially halted five years ago.

Some questions surround these dramatic changes. Will Atlantic remain East Coast-based or move West? Will Craig Kallman, who’s been Greenwald’s partner at the company for eons and currently holds the CEO post at Atlantic Records, remain as one of the last vestiges of the label’s glory days?

When Greenwald departs, Monte Lipman will become the longest-serving major-label boss in the business, having held the chairmanship at Republic since 2013. John Janick will be right behind him, having succeeded Jimmy Iovine at Interscope in 2014.

For further context, Rob Stringer took the helm at Sony Music in 2017 (succeeding Doug Morris), and Sir Lucian Grainge came in as global UMG boss (also following Morris) starting in 2011.

The extraordinary rise of Grainge fils reflects not only his fine musical instincts but also his savvy and finesse with respect to the biz. It will be fascinating to watch his development as a major-label chief.

Meanwhile, wonderers wonder what Kyncl’s next move regarding a major acquisition will be, given that the CEO brought in Michael Ryan-Southern from Goldman Sachs to run point on M&A.