#008: Len Blavatnik is a Boss
“Get the money, always remember to get the money, and never forget to always remember to get the money”
Len Blavatnik is a boss. There is no way around it. Not only is he the owner of top companies in multiple industries, one of the richest men in the world and as of late, fighting for progressive causes, but he may have just pulled off the most savvy business transactions in the history of the music business.
Sir Leonard (aka Len) Blavatnik was born in the Soviet Union, but ended up in the United States to earn his Masters Degree from Columbia University (1986), followed by a MBA from Harvard Business School (1989). While still at Harvard, Blavatnik started Access Industries in 1986 — which has gone on to become one of the world’s largest conglomerates, owing businesses in oil, entertainment, coal, plastics, telecommunications, media and real estate. In the music industry alone, Len is the owner of Warner Music Group, Deezer, Songkick and more (1). This portfolio has earned him the title of ‘richest person in the UK’ and the 27th richest person in the world.
In addition to his business success, Len has showed as of late a keen ability to mobilize around progressive causes. While his track record shows support of Republican candidates - including Mitch McConnell, Blavatnik’s recent record has included large donations to presidential candidate Pete Buttigieg and since Joe Biden. He donated $1 million to an anti-Trump organization in 2016 (2). Most recently, and in support of the Black Lives Matter movement, Warner Music Group - back by Blavatnik - established a $100 million fund for anti-racist and music industry causes (3).
While creating a business empire and using your wealth for good are admirable qualities, they are not article worthy in and of themselves. Len Blavatnik purchased Warner Music Group for cash in 2011 for $3.3 billion. He has led the company to great success in the years that followed, releasing top charting singles from Bruno Mars, Ed Sheeran, Cardi B and beyond. In June 2020, Warner Music Group went public via an Initial Public Offering (IPO) on the Nasdaq exchange (4). In the process of the IPO, Warner was valued at $3.17 billion for the shares that were made available for trading. So what does this mean for Blavatnik? After the IPO, Blavatnik still retained 86.3% ownership of Warner Music Group, including an astounding 99.2% voting power in the company (5). This means that in under 10 years, Blavatnik returned his $3.3 billion for the acquisition of Warner Music Group, while still owning over 86% of the company and having full control. This is one of the most shrewd deals in the history of the music business.
With significant growth projected ahead in the music industry, it can only be assumed that even greater value will be generated from Warner Music Group in the years ahead. Pulling off a deal like the Warner Music Group IPO, especially during a global pandemic, and having that transaction be only a fraction of your larger portfolio proves one thing — Len Blavatnik is a boss.
(1) Ingham, T. (2016, September 08). Len Blavatnik's Access Industries takes 'exclusive control' of Deezer. Retrieved June 29, 2020, from https://www.musicbusinessworldwide.com/len-blavatniks-access-industries-takes-exclusive-control-deezer/
(2) Ingham, T. (2016, March 22). Warner owner Len Blavatnik pumps $1m into anti-Donald Trump group. Retrieved June 29, 2020, from https://www.musicbusinessworldwide.com/warner-owner-len-blavatnik-pumps-1m-into-anti-donald-trump-group/
(3) Ingham, T. (2020, June 03). Warner Music Group and Len Blavatnik pledge $100m fund for anti-racist and music industry causes. Retrieved June 29, 2020, from https://www.musicbusinessworldwide.com/warner-music-group-and-len-blavatnik-to-give-100m-to/
(4) Lee, W. (2020, June 03). Warner Music Group launches IPO, sets price at $25 a share. Retrieved June 29, 2020, from https://www.latimes.com/entertainment-arts/business/story/2020-06-03/warner-music-group-launches-ipo-sets-price-at-25-a-share
(5) Ingham, T. (2020, June 22). Is Len Blavatnik about to complete the shrewdest deal in the history of the record business? Retrieved June 29, 2020, from https://www.musicbusinessworldwide.com/is-len-blavatnik-about-to-complete-the-shrewdest-deal-in-the-history-of-the-record-business/
JAY’S SONGS OF THE WEEK
Jack Harlow - “WHATS POPPIN” (feat. DaBaby, Tory Lanez & Lil Wayne)
boyband - “tattoo”
Curtis Waters - “System”
salem ilese - “Mad at Disney”
6LACK - “Know My Rights” (feat. Lil Baby)
Trevor Daniel - “Past Life” (feat. Selena Gomez)
DJ Snake - “Trust Nobody”
Caro - “Part of Me”
Joel Blackmon - “Morning”
