Linkin Park Prefers Internet to Warner Music Group

Related link: http://www.billboard.com/bb/daily/article_display.jsp?vnu_content_id=1000904551

Linkin Park wants out of its contract with Warner Music group, saying they have no confidence in WMG's IPO plans and may distribute their music via the Internet instead. Full Billboard story here.

WMG was bought last year by a group led by Edgar Bronfman of Seagrams, in his re-entry into the music business after selling Universal to Vivendi in 2000. Bronfman and the other new WMG owners plan an IPO that will reap them hundreds of millions of dollars. At the same time, they are cutting staff and other expenses at the struggling label.

Linkin Park's management claim only $7 million of the $750 million IPO proceeds will go to operations, and none to WMG artists. WMG says the LP managers' numbers are wrong, and charges that the threat of bolting is just a hardball tactic as part of Linkin Park's current contract renegotiation.

Thanks to Boing Boing, where I found the announcement.