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Warner Music has acquired a majority stake in 10K Projects, the upstart record label behind rapper Ice Spice, for an undisclosed sum, according to a person familiar with the matter.
10K Projects was founded in 2016 by Elliot Grainge, the son of Universal Music CEO Lucian Grainge (a rival of Warner Music).
Warner, the third-largest music company behind Universal and Sony, sees the deal as a way to invest in the music industry’s next generation of leaders and up-and-coming talent.
Elliot Grainge, 29, has recently criticized the major labels despite his father’s prominence in the music industry, telling the media los angeles times They are “conveyor belts” whose strength has been “completely weakened” over the past few years. “Essentially they are a bank,” he said.
10K Projects will exist as its own label in Warner Music’s portfolio, which includes Atlantic Records, Elektra and others. Elliot Grainge will continue as 10K CEO.
Grainge said Tuesday that the deal “provides us with the support, collective expertise and vision to empower our artists and staff in the next phase of their journey”.
Warner, which did not disclose terms of the deal, described it Tuesday as a “joint venture” with 10K Projects. “Together we will increase our investment in the arts and accelerate our pace of innovation,” said Warner Music CEO Robert Kyncl.
The deal comes as Warner and other major labels, which together control two-thirds of the music market, have been buying up independent labels.
In 2021, Warner agreed to acquire hip-hop label 300 Entertainment and Russian independent label Zhara Music for more than $400 million. Sony Music acquired independent music company AWAL in 2021 for $430 million.
Warner Music is the home of Dua Lipa, Lizzo and Ed Sheeran, and is owned by Ukrainian-born billionaire Leonard Blavatnik ( Leonard Blavatnik’s holding company, Access Industries, is controlled through super voting shares.
Shares of Warner Music have fallen about 5% this year. Warner reported a net income of $124 million in the second quarter, with revenue rising 9% year-over-year to $1.6 billion. “We continue to invest in new creative talent,” Kyncl told investors last month.
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