Warner Music Group Corp. Takeover under Investor Investigation

May 9, 2011 - PRLog -- The announcement by Warner Music Group Corp. that it has agreed to an acquisition of Warner Music Group Corp. by Access Industries caused an investigation on behalf of investors of Warner Music Group Corp.  concerning possible breaches of fiduciary duty.

If you purchased shares of Warner Music Group Corp.  and currently continue to hold those NYSE- WMG shares, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether certain directors and officers at Warner Music Group Corp. or others breached their fiduciary duties in connection the proposed merger.

On May 6, 2011, Warner Music Group Corp.  and Access Industries, announced the execution of a merger agreement under which Access Industries will acquire Warner Music Group Corp in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses.
Warner Music Group Corp. said the purchase price of $8.25 per share represents a 34.4% premium over the volume-weighted average share price of $6.14 over the previous six months.

However, Shares of Warner Music Group Corp.  increased already on May 5 before the announcement from $7.42 per share to $7.90. Then on May 6 WMG shares rose to $8.13 per share. Additionally Thomas H. Lee Partners L.P. and its affiliates, Bain Capital Partners, LLC and its affiliates, and Edgar Bronfman, Jr., who together hold approximately 56% of Warner Music Group's outstanding shares, have entered already into a voting agreement with Access Industries under which those stockholders have agreed to vote their shares in favor of the merger.

Therefore the investigation concerns whether the Warner Music Group Board of Directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Warner Music Group Corp.  and breached their fiduciary duties to Warner Music Group (WMG) shareholder by failing to adequately shop the Company before entering into any transaction. The investigation concerns also whether by Access Industries would underpay for NYSE-WMG shares, thus unlawfully harming WMG stockholders.

Warner Music Group Corp. reported over the past four 12months filing periods 12months Total Revenue ranging from $2.984billion to $3.506billion.

A potential class action lawsuit would seek to maximize the amount of money and information NYSE WMG shareholders would receive in a buyout, so the law firm.

Those who purchased shares of Warner Music Group Corp. (Public, NYSE-WMG) and currently continue to hold those NYSE-WMG shares, and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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