Warner gets Word on Christian music
Recording giant pays $84.1 mil to acquire label
The big-five recording giant has paid $84.1 million in cash to acquire Word Entertainment, the Christian record label division of Gaylord Entertainment, a Nashville-based conglom that also runs the Grand Ole Opry, hotels, radio and music publishing companies.
Move vaults Warner into a leadership position in the religious music genre, which has nearly doubled its share of the U.S. music market to 5% in the last decade.
Demand for Christian music edged higher this year (even as the overall market has slumped) and swelled recently in the wake of the Sept. 11 disaster as record buyers look for music with uplifting themes, according to the Christian Music Trade Assn.
Also aiding growth is the mainstream appeal of acts like Atlantic Records' nu-metalers P.O.D., whose latest release, "Satellite," has gone platinum.
Word is the third-largest Christian label (behind EMI's Chordant and Zomba's Provident), with a 25% share of the Christian market.
Included in Word's stable of 30 active Christian artists are hitmakers Amy Grant and Point of Grace. In addition, Word distributes several fellow Christian imprints, including Integrity Music and Big Idea.
The AOL Time Warner unit also will control Word's publishing division with 45 songwriters under contract, as well as Word Music, which prints and distributes hymnals and choral music. Deal is expected to close in the first quarter of next year.
Word's current prexy and chief operating officer, Malcolm L. Mimms, will continue in both positions under the new regime, reporting to Warner Music topper Roger Ames. The company will keep its headquarters in Nashville.
